The Cauvery dispute has crippled the small and medium industry in both Karnataka and Tamil Nadu. The current scenario has paralyzed units in Bengaluru as it is hub of IT Companies and houses headquarters of startups like Ola and many more. The violent agitationists have damaged the infrastructure, blocked the transportation bringing the city to a virtual halt.
Dispute
Violence erupted after Supreme Court’s decision on 6th September for release of 15000 cusecs of the Cauvery river water (later converted into 12,000 cusecs of water) to Tamil Nadu. The Court ruling ignited century-old dispute between the two states and has led to a widespread damage.
Supply of goods and services has been paralysed affected the smaller units which don’t have a large rolling stock. Violence has severely dented the image of Bengaluru as a business hub. Tamil Nadu’s MSMEs are tarnished too by this dispute, as raw materials are not reaching there.
Both States Small industry suffered
Tamil Nadu SMEs losing Rs 100 cr per day
C. Muthusami, President of Tamilnadu Small and Tiny Industries Association (TANSTIA), told SMEpost, “Pump, Motors and garment sectors are worst hit in SMEs. We have lost 300 crore till now. Our goods vehicle cannot enter Karnataka. Supply of MSMEs is affected by increasing dispute. Government should resolve this as soon as possible.”
“We are not directly affected but things are pretty bad for us too. Raw materials come from the Northern states but due to transport blockage, we are not receiving it. That’s why we are going for a total shut down tomorrow to demand that such situation is not repeated. Centre Government too should intervene.Small scale industry is losing 100 crore every day”, L. Murari, President, Madurai District Tiny & Small Scale Industries Association (MADITSSIA) told SMEpost.
Karnataka SMEs have lost Rs 2500 cr so far
Nagraj Divate, President of North Karnataka Small Scale Industries Association, told SMEpost, “Factories are not operating due to violence. Transportation system has blocked. So how will we do business? Karnataka is reeling under draught and we can not afford to give water. Court should have taken a more humane approach. Our factories need water too. Total loss is about Rs 1500 crore per day.”
“Small and medium enterprises are largely dependent on PSUs and Global business. If we cannot fulfill their order in time they will cancel their orders. Mysuru, Mandya, Chitradurga, Hubli are worst affected districts. Both the state should sit together and resolve the issue, otherwise entire productivity will be affected. Our industry has lost about Rs 2500 cr.”, A. Padmanabha, President, Karnataka Small Scale Industries told while speaking to SMEpost.
