Valley business losses mount to Rs 21,000 cr in 85 days

The 80-day period of shutdowns and curfews in the valley has dented the economy of Jammu and Kashmir by a whopping Rs 21,000-crore as the separatist sponsored agitation has affected every sector including tourism, handicrafts and the nascent industries.

Several established and upstarting manufacturing companies, hotels and restaurants have laid off staff due to prolonged agitation which is showing no signs of ending.

"We do not have the exact data but lay offs have taken place mostly in the hotel and restaurant sector and the travel trade," President of Kashmir Chamber of Commerce and Industry (KCCI) Nazir Ahmad Dar told PTI.

Dar said although reducing the number of employees in the hotel industry was a common practice during the winters due to lean tourist arrivals, this year the lay offs have started at the peak of the tourism season in July.

Asked about the estimated losses suffered by the business community in Kashmir, the KCCI president said on an average the losses were to the tune of Rs 100 crore.

"Even on the limited days of normalcy we have had since June 11, there has been disturbance in some part or the other of the Valley ... It will be safe to put the cumulated losses so far at Rs 8,000 crore," he added.

Dar said business in the state will flourish only after permanent peace is established, which was only possible when "Government of India takes concrete steps to break the impasse".

Mushtaq Ahmad Chaya, the leading hotelier of Kashmir, said he was incurring a recurring loss of Rs 30 lakh per month due to the ongoing agitation. "My salary bill per month is close to Rs 15 lakh while another Rs 15 lakh are incurred on overheads like maintaining the hotel properties, electricity bills, etc," he said.