Cyclone Michaung, which brought life to a standstill in several parts of Tamil Nadu this week, has caused an estimated economic loss of over Rs 11,000 crore, as per the Association of Indian Entrepreneurs (AIE), a Chennai-based MSME body.
The estimated loss figure was shared by AIE president K E Raghunathan, the Economic Times reported on December 10. The maximum loss was expected in Kanchipuram, Tiruvallur, Chennai and Chengalpattu districts, which account for more than 3.5 lakh industries, he added.
An estimated 25 lakh persons based in the four districts have faced the economic brunt due to the cyclone, Raghunathan reportedly said, adding that they include those involved in the MSME sector, along with those working as street vendors, gig workers, auto and taxi drivers, daily wage earners, contractors, perishable goods sellers and traders.
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The AIE chief appealed to the government to cancel property tax, metro water and sewerage taxes in the four districts for three months, and direct the state-run Tamil Nadu Industrial Investment Corporation (TICC) to grant loans at concessional interest for refurbishment and repair of rain-affected machinery.
The state government should also request the Reserve Bank of India (RBI) to offer three months moratorium on term loans for businesses affected in the Kanchipuram, Tiruvallur, Chennai and Chengalpattu districts, he further added, as per the report.
The cyclone triggered torrential rainfall in several parts of Tamil Nadu since December 5. It made landfall in neighbouring Andhra Pradesh on December 6. The flooding caused due to the incessant rainfall claimed the lives of at least 14 persons, most of them in Chennai.
The city and its adjoining parts are home to the local arms of leading global companies such as Daimler, Hyundai Motor and Taiwan's Foxconn and Pegatron, that manufacture products of tech giant Apple.
While a bulk of the companies, including Foxconn and Pegatron, resumed operations by December 7-8, some of the production plants located in low-lying inundated regions were yet to resume operations, reports said.
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