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Ahmedabad/Vadodara, August 9: IT’S raining miseries and massive losses at Hazira and Surat in Gujarat. Unprecedented rains in the past few days coupled with release of huge volumes of water from the Ukai dam have left both the industrial township of Hazira, and the diamond and textile capital of the country Surat reeling under heavy floods.

Though both the places are currently inundated with water, which at some places is as much as five to 25-feet deep, industry sources apprehend that even once the waters start receding, it may take at least four to five days for things to resume returning back to normalcy.


While there are several guess estimates currently floating around on the quantum of losses, industry bodies in Gujarat are varying in their assessments from around Rs 1,000 crore to over Rs 5,000 crore.

Worst hit is the diamond city Surat, which is currently totally cut off from the rest of the country with virtually no access by rail or land, no telephone, power, food and drinking water. Apart from local residents, industries in and around have borne the brunt of nature’s fury.

Apart from big-ticket corporates, smaller units in flooded Surat have also been hit hard by the floods. Speaking to Express News Service, Rajiv Raval, President, Gujarat State Plastic Manufacturers’ Association (GSPMA), said: ‘‘There are 200 plastic processing units in and around Surat, having production capacity of 1,000 tonne per months. These units are expected to witness a massive production and infrastructure loss of close to Rs 1,500 to Rs 2,000 crore.’’ Following emergency shut down of Reliance plant in Hazira, these units will also have to face supply crunch.

Dyestuff units in Surat are also poised for heavy production loss, said Manish Kiri, Secretary, Gujarat Dyestuff Manufacturers’ Association (GDMA), adding, ‘‘At present there are more than 30 dyestuff units in Surat. They have suffered Rs 25 crore loss in the past three days with daily production loss of more than Rs 5 crore.’’

Moreover, more than 6,000 diamond units in Surat have stalled production incurring a loss of Rs 133 crore per day.

According to Babubhai Patel, Member, Executive Committee, Association of Federation of Industries in Gujarat, which represents all the associations of GIDCs in the State, ‘‘As per the preliminary estimates, all the units in Hazira, both big and small, are losing production of around Rs 300 crore per day’’.

Chetan Patel, President, Central Gujarat Chamber of Commerce and Industries, also echoed the same.

In addition, the transportation business and banking industry also remained crippled with thousands of trucks stranded on highways and employees of banks unable to report for work.

While it’s relatively easy to quantify the losses to businesses in Surat, it’s difficult to measure the mounting production losses which corporate bigwigs having units in Hazira are suffering. For instance, when contacted a spokesperson of Reliance Industries informed that the flooding of Surat and Hazira have forced the company to stall production in three plants. He, however, refused to divulge details on the exact quantum of losses. Similarly, fertilizer giant Kribhco is losing production worth Rs 1.5 to Rs 2 crore per day.

Hazira-based Essar Steel and Essar Power have also scaled down their production activities. A company spokesperson told Express News Service that there has not been any damage to Essar’s complex a Hazira. The plant and townships are safe. However, its steel plant is operating at a mere 30 per cent capacity while its 500 MW power plant is producing only 100 MW daily due to shutdown of the transmission grid. ‘‘We are only generating power for captive consumption at the moment,’’ he said.

Similarly, L&T has suspended its manufacturing operations at Hazira as has the Gujarat Government’s bluechip Gujarat State Petroleum Corporation which has temporarily relocated its operations of supplying gas to Essar and Gujarat Gas to Sherki near Vadodara.

Flooding of State-owned ONGC’s Hazira gas processing complex has also crippled half of India’s natural gas production, threatening power generation in North and CNG supplies to automobiles in the National capital. ONGC’s South Bassein and B-55 fields in Mumbai offshore remained shut for the second day today in running while the ONGC-Reliance-British gas operated Panna/Mukta and Tapti fields did not produce any gas and were forced to cut oil production by 20,000 barrels per day.

Shazira-Vijaipur-Jagdishpur (HVJ) pipeline. The company is rationing the 18 mmscmd gas available from LNG imported by Petronet.

Power, fertilizer and transport sector is being given top priority, a GAIL official said. GAIL had been asked to ration supplies with transport sector (CNG in Delhi), power and fertilizer units getting top priority.

Meanwhile, six gas-fired power plants run by the National Thermal Power Corporation-two in Gujarat, two in Uttar Pradesh, and one each in Rajasthan and Haryana—have been severely hit, a company official said on Wednesday.

‘‘Our operations have been hit. There are operating at partial capacity of about 40 per cent. Some of the six plants can shift to naphtha if gas supplies are not normalised. Much will depend on the naphtha stocks they have,’’ an NTPC official, who did not wish to be identified, said.

Indian Petrochemicals Corporation Ltd has shut some plants at its complex in Vadodara due to a lack of gas supplies from flood-hit Oil and Natural Gas Corporation, the company said on Wednesday. ‘‘Consequent to shutdown of Hazira ONGC terminal gas facility, the supply to the company’s Vadodara complex has been affected,’’ an IPCL statement said. The IPCL plants would remain closed until gas supplies were restored.