Financial Daily from THE HINDU group of publications
Monday, Aug 26, 2002
Financial Daily from THE HINDU group of publications Monday, Aug 26, 2002 |
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Industry & Economy
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Exports & Imports Materials damaged in 2000 floods — Kukatpalli CFS users yet to get full compensation Our Bureau
HYDERABAD, Aug. 25 MANUFACTURERS of different materials in the twin cities, who stored their imported products and those meant for export in the Central Warehousing Corporation's (CWC) Customs-bonded godowns at Container Freight Station in Kukatpalli here two years ago, are yet to get full relief from insurance companies for the loss they suffered during the unprecedented floods of August 2000. The damaged property worth Rs 12.5 crore was insured with Oriental Insurance Company through the CWC and could not be salvaged. The Association of Flood-Affected Importers and Exporters has alleged that though the two organisations had accepted the fact of damage to property, they were reluctant to fulfil their obligation to meet their claims. This is despite the payment of premia for insurance coverage for c.i.f. value of the goods and also Customs duty to CWC by the association members. The association stated in a press release that two of its members who stored their material in the same godowns, but made private arrangements for insurance with the same company, were able to get their claims settled much earlier. After persistent efforts, the insurance company has released Rs 5 crore to CWC towards part payment at the national level and of this the CWC has allotted Rs 3 crore to the Hyderabad region. The regional office, in turn, paid Rs 2 crore to the victims and kept Rs 1 crore towards Customs duty payment. As there was no precedent in regard to payment of Customs duty on goods affected by such calamities, the matter has been referred to the Central Board of Excise and Customs for its opinion. The association says that it is yet to get Rs 10.5 crore towards fulfilment of claims and of this if Rs 5 crore were earmarked for Customs, the members would get Rs 5.5 crore. It is awaiting settlement of claims pertaining to the c.i.f. value of their damaged material.
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