2-day bandh over Cauvery crisis to cost Karnataka Rs 4,000 crore

News Network
September 28, 2023

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Bengaluru, Sept 28: Parts of Karnataka are set to witness another bandh as farmers are protesting the release of Cauvery water to neighbouring state Tamil Nadu. 

The protesting farmers are expected to come in from several quarters including opposition parties and pro-Kannada groups. Opposition parties such as BJP and AAP have also supported the bandh. After the September 26 bandh, another bandh has been called for September 29 by pro-Kannada organisations.

According to a report, industry bodies such as Karnataka Employers Association(KEA) and Karnataka Chambers of Commerce and Industry (FKCCI) predict that the 2-day bandh is expected to cost the state of Karnataka approximately Rs 4,000 crore.

"One day closure by only the trading community amounts to a Rs 100 crore loss in GST collection to the state exchequer. Consider this multiple times across all spheres of economic activi ties,” said Ramesh Chandra Lahoti, FKCCI president elect.
Industry bodies argue that these bandhs could cripple the economy and hinder its growth towards becoming a $1-trillion economy. "Bandhs hurt the livelihood of people. They can never be an option for any issue, be it sentimental or political,” BC Prabhakar, president of KEA, told the newspaper.

According to the FKCCI, a business entity will need at least a week to recover from losses suffered from just a single day of closure.

What will run and what won't

A report stated that the hotelier's association, which employs nearly 10 lakh people directly or indirectly, estimates a loss of Rs 100 crore in excise duty. “While reports suggest heavier losses, revenue generation in our industry is on a daily basis. Other industries can restart operations the next day and recoup losses, but that's not possible for hoteliers,” PC Rao, president of Bengaluru Hotelier's association, said.

Meanwhile, Ola-Uber Drivers' Association said they would extend full support for the bandh on September 29 called by pro-Kannada organisations but will not support the strike on September 26.

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