The Hindu Business Line : Surat traders seek tax holiday for flood victims

The businessmen and traders of the flood-ravaged Surat and other areas in Gujarat have urged the Centre to declare a tax holiday in view of the unprecedented devastation caused by the natural calamity to the tune of more than Rs 20,000 crore, on lines with the facilities provided in 2001 to the earthquake-hit Kutch district.

The Surat Chamber of Commerce and Industry President and leading diamond merchant, Mr Pravin Nanavati, told Business Line here that the flood victims should be given a two-year tax holiday, besides creating a disability fund for them, particularly for those who lost their trade and business. Unless these steps were taken, Surat would find it difficult to get back on its feet despite paying a whopping Rs 40,000-crore worth of taxes to the national exchequer every year.

Recounting the huge losses caused by the floods in Surat, which remained under several feet of water from August 7 to 11, he said the last ten days alone had seen a production loss of about Rs 600 crore and a machinery and plant damage to the tune of at least Rs 200 crore, as per the initial estimates.

Losses incurred

Besides, the small traders and businessmen, who owned about 60,000 shops in Surat, have suffered a loss of Rs 3 lakh each, aggregating to nearly Rs 2,000 crore.

Mr Nanavati, citing early estimates, said the buildings have suffered damages of Rs 200 crore while other industries like zari too have lost production worth Rs 200 crore and an equal amount due to damaged machinery.

Besides, the local SBI clearing house, which clears cheques worth Rs 300 crore per day, has also suffered a loss of Rs 3,000 crore due to the calamity.

The city's badly affected infrastructure, individual claims (Rs 10,000 crore), roads and bridges around Surat (Rs 700 crore), canals and drainage (Rs 900 crore) and crops like sugarcane (Rs 4,000 crore) were the other huge losses, Mr Nanavati said.

Loan Relaxation

He urged the Governments at the Centre and in the State to provide relaxation in existing loan terms, fast settlement of insurance claims, some compensation to the uninsured small units and extension by two months in pay-by dates for electricity and gas bills.

While the Chamber had a meeting with the State Industry Commissioner, Mr Arvind Agrawal, on Sunday here, the business bodies met the insurance officials on Monday and the Principal Secretary (Industries and Mines), Mr D. Rajagopalan, on August 14 to press their claims.

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