Chennai's Industrial Landscape: A Tale of Two Recoveries Amidst Cyclone Michaung

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ICARO Media Group
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09/12/2023 18h52

Chennai's industrial sector has been grappling with the aftermath of Cyclone Michaung, with varying degrees of impact observed across different entities. While larger companies have managed to resume operations with minimal damage, micro, small, and medium enterprises (MSMEs) continue to face severe crises, grappling with substantial losses and neglect from the system.

One area deeply affected by the cyclone is the Vichoor SIDCO estate, a hub for 110 companies primarily in the chemical and paint industries. The estate currently remains submerged, with floodwaters reaching alarming heights of 8 to 10 feet. This has resulted in the destruction of whole industrial units, causing losses amounting to approximately Rs 160 crores.

Among the affected enterprises, SM Tower Technologies, owned by SA Shafique, has suffered a massive loss of Rs 3 crores. The once-thriving plant now lies in ruins, with the zinc bath and the section for collecting zinc ash completely destroyed. An estimated 20-30 tonnes of zinc ash, valued at Rs 1.5 crores, have become part of the wreckage caused by the flood.

Moreover, the floodwaters have rendered expensive electrical machinery, equipped with sensors, useless, further exacerbating the grim scenario for the businesses in Vichoor. Shafique remarked that although Chennai has experienced floods in the past, the magnitude of destruction this time is unparalleled.

Regrettably, some companies are uncertain about their revival prospects. Sriram Cold Forgings Private Limited, located nearby, has also suffered extensive damage to its electrical machinery. The absence of power in the area adds to the uncertainty surrounding the company's recovery.

In contrast, larger companies and manufacturers have been able to restart their operations more swiftly. Shankar Vanavarayar, Chairman of the Confederation of Indian Industries (CII), highlighted that the IT industries in Old Mahabalipuram Road (OMR) faced major disruptions, resulting in many employees being unable to work due to the flooded facilities. However, he emphasized that these larger companies suffered minimal damage compared to their smaller counterparts.

According to the state government, over 90 percent of firms within the industrial estates managed by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) have already resumed operations since Wednesday. The presence of robust infrastructure facilities, such as land, power, water, roads, and communication networks, cater primarily to large and medium-scale industries, facilitating their swift recovery.

However, MSMEs under the purview of the Tamil Nadu Small Industries Development Corporation Ltd (SIDCO) face a different reality. K Mariappan, Chairman of the Tamil Nadu Small and Tiny Industries Association (TANSTIA), estimated their collective losses to be around Rs 1000 crore. These MSMEs have suffered extensive damage, with industrial estates such as Ambattur, Thirumudivakkam, Perungudi, and Thirumazhisai brought to a standstill due to the relentless deluge.

The Thirumazhisai Industrial Estate (TIE) has been particularly hard-hit, with the entire area submerged under 3-4 feet of water. The Ambattur Industrial Estate has also suffered catastrophic damage, with the Ambattur Industrial Estate Manufacturers Association (AIEMA) urgently appealing for intervention as machines, raw materials, and finished goods worth an estimated Rs 2,000 crore have been submerged in water.

Unfortunately, MSMEs affected by natural calamities like storms and floods do not currently qualify for compensation under the National Disaster Management Authority (NDMA), as mentioned by Mariappan. He urged the Tamil Nadu government and the central government to include MSMEs in the list of eligible companies to receive financial assistance.

The contrasting recovery experiences of larger industrial units and MSMEs highlight the disparities in resources and support systems available to them. While the former can leverage robust infrastructure, the latter faces significant challenges, exacerbating their damages and disruptions. It is crucial for authorities to address the grievances of MSMEs and provide them with the necessary assistance to recover from the devastating impact of Cyclone Michaung.

(Note: The information provided in this news article is based on the context given by the user and does not include additional entities, numbers, or dates.)

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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