Bharat Bandh hit economic activity across the country, causing losses of several thousand crores as railways, road transport and aviation services were suspended in several states and trading activity disrupted across markets.
More than 50 lakh trucks, autorickshaws and taxis remained off the road damaging perishable goods and causing nuisance to commuters. About 200 train services were disrupted and passengers were stranded in Mumbai and the New Delhi airports as scores of flights were suspended.
“We estimate that most of the 52 lakh vehicles remained off-road today, in support of the strike,’’ said G R Shanmugappa , president of the All India Motor Transport Congress. “The total losses arising out of non-transportation of goods could be over Rs 10,000 crore and rollover effect of today’s strike in form of goods accumulation could be felt for next few days.”
Larsen & Toubro, the biggest engineering company, Sun Pharmaceuticals and Bangalore offices of Dell Services, Infosys Technologies and Wipro were among companies partially shut. These firms asked staff to stay away from work to avoid hardship and getting caught in sporadic violence.
“We have declared a holiday for our staff today,’’ said an official at Larsen & Toubro. “`But we will not incur any loss as we will be working a full day in compensation for the strike.”
Production at the German automobile company Volkswagen’s unit in Chakan near Pune, that assembles the Jetta and the Polo models, fell by half as buses carrying workers had to turn around mid-way.
But Tata Motors, makers of Nano cars and the Kolkata-based RPG group of companies, with interests from retail to power generation, said that production would not be affected much, although attendance has been below average.
Retailers bore the brunt of the strike with many of them downing shutters amid fears their stores could be easy targets to stone pelting. Future Group, which runs the Big Bazaar and Pantaloon chain of stores, may have lost Rs. 20 crores.
“Because of the lack of public transport, employees could not report to work,” said Rakesh Biyani, CEO of Future Retail. ``About 15% of employees reported to work in company’s offices, but in stores, attendance was much thinner.”
“The Bharat Bandh has led to significant impact on business and trade in some parts of the country,” said a statement from the Confederation of Indian Industry, which estimates the economic loss to be more than Rs. 3.000 crores. “As is the case with any bandh, the worst affected are daily wage earners and people dependent on small trade. The transport sector is also another part of the industry, which has had a major impact.”
The shut-down was near total in the states ruled by the opposition parties, notably the BJP-led National Democratic Alliance and Communist parties, but partial in regions ruled by Congress and its allies.
The government, battling a soaring fiscal deficit, on June 25 raised fuel prices for the second time this year, which opposition parties say further pinches the common man who is already paying at least 15% more on year for food articles. Petrol rose Rs 3.5 a litre and diesel by Rs 2 a litre. Kerosene, the fuel used by the poor was increased by Rs 3 a litre, while cooking gas got dearer by Rs 35 a cylinder. These increases will partly cut the deficit, but still leave Rs 53,000 crore budgetary deficit on account of fuel subsidy.
Increases in the price of diesel may set off yet another round of inflation since more than 70% of the goods move by road. The wholesale price inflation rate is more than 10%, almost double the central bank’s target of 5.5%. RBI raised borrowing costs last week by 25 basis points, for the third time this year.
Trading volumes in the stock and currency markets were lower than average as many traders did not step out fearing violence in Mumbai, where 78 local buses were damaged and suburban train services were disrupted.
Combined volumes on the Bombay and the National stock exchanges stood at 83 crore shares, some 26% lower than Friday’s, while turnover fell 35% to Rs 10,622 crore. The rupee fell against the US dollar closing at 46.77 per dollar.
Source http://economictimes.indiatimes.com/news/politics/nation/Bharat-Bandh-causes-losses-of-several-thousand-crores/articleshow/6132988.cms
More than 50 lakh trucks, autorickshaws and taxis remained off the road damaging perishable goods and causing nuisance to commuters. About 200 train services were disrupted and passengers were stranded in Mumbai and the New Delhi airports as scores of flights were suspended.
“We estimate that most of the 52 lakh vehicles remained off-road today, in support of the strike,’’ said G R Shanmugappa , president of the All India Motor Transport Congress. “The total losses arising out of non-transportation of goods could be over Rs 10,000 crore and rollover effect of today’s strike in form of goods accumulation could be felt for next few days.”
Larsen & Toubro, the biggest engineering company, Sun Pharmaceuticals and Bangalore offices of Dell Services, Infosys Technologies and Wipro were among companies partially shut. These firms asked staff to stay away from work to avoid hardship and getting caught in sporadic violence.
“We have declared a holiday for our staff today,’’ said an official at Larsen & Toubro. “`But we will not incur any loss as we will be working a full day in compensation for the strike.”
Production at the German automobile company Volkswagen’s unit in Chakan near Pune, that assembles the Jetta and the Polo models, fell by half as buses carrying workers had to turn around mid-way.
But Tata Motors, makers of Nano cars and the Kolkata-based RPG group of companies, with interests from retail to power generation, said that production would not be affected much, although attendance has been below average.
Retailers bore the brunt of the strike with many of them downing shutters amid fears their stores could be easy targets to stone pelting. Future Group, which runs the Big Bazaar and Pantaloon chain of stores, may have lost Rs. 20 crores.
“Because of the lack of public transport, employees could not report to work,” said Rakesh Biyani, CEO of Future Retail. ``About 15% of employees reported to work in company’s offices, but in stores, attendance was much thinner.”
“The Bharat Bandh has led to significant impact on business and trade in some parts of the country,” said a statement from the Confederation of Indian Industry, which estimates the economic loss to be more than Rs. 3.000 crores. “As is the case with any bandh, the worst affected are daily wage earners and people dependent on small trade. The transport sector is also another part of the industry, which has had a major impact.”
The shut-down was near total in the states ruled by the opposition parties, notably the BJP-led National Democratic Alliance and Communist parties, but partial in regions ruled by Congress and its allies.
The government, battling a soaring fiscal deficit, on June 25 raised fuel prices for the second time this year, which opposition parties say further pinches the common man who is already paying at least 15% more on year for food articles. Petrol rose Rs 3.5 a litre and diesel by Rs 2 a litre. Kerosene, the fuel used by the poor was increased by Rs 3 a litre, while cooking gas got dearer by Rs 35 a cylinder. These increases will partly cut the deficit, but still leave Rs 53,000 crore budgetary deficit on account of fuel subsidy.
Increases in the price of diesel may set off yet another round of inflation since more than 70% of the goods move by road. The wholesale price inflation rate is more than 10%, almost double the central bank’s target of 5.5%. RBI raised borrowing costs last week by 25 basis points, for the third time this year.
Trading volumes in the stock and currency markets were lower than average as many traders did not step out fearing violence in Mumbai, where 78 local buses were damaged and suburban train services were disrupted.
Combined volumes on the Bombay and the National stock exchanges stood at 83 crore shares, some 26% lower than Friday’s, while turnover fell 35% to Rs 10,622 crore. The rupee fell against the US dollar closing at 46.77 per dollar.
Source http://economictimes.indiatimes.com/news/politics/nation/Bharat-Bandh-causes-losses-of-several-thousand-crores/articleshow/6132988.cms
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