OIF assesses loss to MSMEs in Ganjam at Rs 950 cr

The Odisha Industries Federation (OIF) has estimated the loss to small and medium industries in the coastal Ganjam district due to cyclone Phailin and subsequent floods at about Rs 950 crore.

A fact finding team of the federation which visited the cyclone hit district has calculated that out of 400 rice mills in Ganjam, 270 have been affected to the extent of 80 to 100 per cent. The damage to these rice mills alone is estimated at about Rs 540 crores.

Other units ravaged by the twin calamities include 55 cashew units (Rs 45 crores loss), 150 kewda distillation plants (Rs 100 crore loss). Besides, 250 micro, small and medium enterprises engaged in electrical manufacturing, plastic and polymer, fabrication and engineering, wood based industries, cement making and food processing have sustained a loss to the tune of Rs 100 crore.

Large industries like Aska sugar, Jayshree Chemical have also been hit badly and the loss at these industries has been pegged at around Rs 20 crores.

The team, which visited places like Chhatrapur, Berhampur, Digapahandi, Purusottampur and Aska, feels that the damaged units will take minimum two years to resume their operation after the restoration of electricity supply which will take another one month.

During this period, they have to pay statutory dues like energy minimum demand charges, bank's interest and instalments, employees' salary which will bring extra burden on the entrepreneurs.

The fact finding team, headed by Sarat Kumar Sahoo, chairman, OIF, pointed out that the DIC (district industries centre) at Berhampur does not have required infrastructure to study the impact and doubted its ability to send realistic report to the government on damages. The industry body has urged the state government to send a team of top officials to the cyclone ravaged areas for assessing the losses and submit a report so that planning commission can be approached for special grants.

The federation demanded waiver of minimum demand on power supply charges, employees' statutory dues and allowance of moratorium on repayment of loans for two years along with a special grant for reconstruction of the damaged units.