Kochi: The business sector in Kerala suffered an estimated loss of a whopping Rs 5,500 crore in the two-day strike called by the Joint Council of Trade Unions on Monday and Tuesday. It included financial losses suffered in the industrial production sector and loss of revenue and taxes received from various other sectors.
The strike resulted in a severe financial setback to the market which was limping back to normalcy after remaining dormant for almost two years due to the COIVD 19-driven uncertainty.
While making a calculation on the basis of the tax inflow to the exchequer, the trade and commercial value of the loss on a single striking day came to Rs 1,000 crore. So, the total loss came to around Rs 2,000 crore in two days.
An average Rs 1,830 crore revenue is collected annually from the Goods and Services Tax (GST) and the Value-Added Tax (VAT) for petrol, diesel and liquor in the State. So, the loss in a single day on that count was estimated to be Rs 61 crore. Thus in two days, the loss rose to Rs 122 crore.
There are almost 134,000 micro, small and medium (MSM) units in the State. It includes all the units which have taken industrial power connections. The financial loss of these units touched almost Rs 3,000 crore. The loss incurred by the large-scale industrial units comes in addition to this figure.
The total loss comes to around Rs 5,500 crore if you add up the loss suffered by the Special Economic Zone in Kochi with all the above listed losses.
CSEZ to seek damages
About 150 companies in the CSEZ remained fully closed on the two striking days and the total losses stood at around Rs 350 core. An export to the tune of Rs 45,000 crore was registered in the last financial year in the CSEZ.
Production was severely hit in the export units during the strike on Monday and Tuesday. Damage of raw material was also reported from many companies operating there.
The CSEZ Industries Association said that it would approach the court, seeking compensation for the loss.
KSRTC losses pegged at Rs 6 cr
The loss of the KSRTC during the two-day strike is found to be Rs 6 crore. The daily collection of the KSRTC comes in the range of Rs 5 crore to 6 crore.
The daily diesel expenses are estimated to be Rs 3 crore. So, the two days' loss is pegged at Rs 6 crore.
