Vizag industry may take a year to recover from cyclonic shock

VCCI President P Ramabrahmam says the coastal city has not witnessed such a devastation in last 100 years

The HudHud severe cyclone which crossed Visakhapatnam coast on October 12 devastated the coastal city and surrounding districts of Srikakulam as well as Vizianagaram with total destruction estimated at around Rs 70,000 crore. The damage to the industrial fabric of the region has also been colossal. “Industrial sector here has been crippled, to say the least, as the damage was extensive. It takes more than a year to just recover from the shock. Government should extend helping hand for the faster revival of the industrial sector in the region,” K Ramabrahmam, President, Vizagapatam Chambers of Commerce and Industry (VCCI), tells P Madhusudhan Reddy in a telephonic interview from the steel city

Can you give us a sense of total loss suffered by industrial sector in Visakhapatnam and surrounding districts due to recent Hudhud cyclone?

The industrial sector suffered colossal loss due to the cyclone. But as of now there is no way to assess the damage. Cell phones and internet did not work for a week. Nearly 50 per cent of Visakhapatnam is still without electricity. The accessibility is the biggest problem and so, we could not even contact local industry bodies till now. We can understand the extent of damage from the fact that nearly 80 per cent of industrial units have no roofs at all. All the temporary roofs have been swept away. Though some industrialists have come into contact with us, they are now busying with clearing of the debris left behind by the cyclone. As there was no access to even television, we did not know what was happening in Visakhapatnam city, leave alone the surrounding districts. Politicians can give some statistics about the damage, but we can’t afford to do so as we don’t have any authoritative data on the damage. We hope to start collecting data after the power is fully restored.

Which of the industrial sectors have been hit the most?

Meteorological Department says the city has not seen a cyclone of such a magnitude in the past 100 years. As per their records, a cyclone had hit the Vizag coast way back in 1891, but that too was of a lesser magnitude. Moreover, the city was smaller at that time. This Hudhud severe cyclone had not spared any sector. Given its magnitude, there is no way any sector could escape from the damage. Pharmaceuticals, shipping, fabrication units and steel manufacturing facilities were hit badly. We need at least one more week to give a better picture of the damage. Nearly 80 per cent of warehouses were damaged beyond recognition.

How long does it take for the industrial sector to be back on the track?

It is too early to estimate the time that the industrial sector will need to be back on track. I think the sector will require at least one year just to recover from the shock. It will take much longer to come back into action. First, there is an urgent need to restore power and water supplies. Then, industrial units have to get the damages repaired. Then only we can think of running the units. As of now, it is not easy to get materials such as asbestos sheets and things like that for repair works. Moreover, labour is also a problem as it is difficult to get workers here. The state and central governments should work hand in hand for the faster revival of industrial sector in Vizag and neighbouring districts.

What kind of support the industrial sector has received from the government so far?

So far, we have received good assurances from the government. But we don’t know what we will get, in reality. First of all, they have to restore power and water. The restoration works are still at very early stage. For the faster recovery of industrial sector, the government has to facilitate new loans and instruct banks to extend the existing credit facilities. Besides, government should also declare tax holiday for all the industrial units in the cyclone-ravaged areas. The industrial sector here badly needs a helping hand. More so are the small and medium enterprises (SMEs) which also suffered heavily. At a recent meeting convened by Chief Minister N Chandrababu Naidu, every owner of SMEs had poured out his woes and explained about the destruction. State government should also offer materials needed for repairs at subsidised prices. The SME entrepreneurs have invested all their funds into the companies. So, where can they get more funds to repair the damages and restore the activities?

Has the brand image of Visakhapatnam taken a hit due to the cyclone?

We don’t think so. Cyclones happen every where as they are the work of Mother Nature. Moreover, Visakhapatnam is not a cyclone-prone area like some of the cities in Japan. Even cities like New Jersey in the US which was hit by cyclones, suffered longer time without power and water. When compared to those incidents, Visakhapatnam is recovering fast. The city will come back with a bang. We have no doubt about that. The fact of the matter is that this is the first time that an urban centre is hit by a cyclonic storm in the country. So, there is huge damage to the properties though the human loss is minimal.