BENGALURU: Various industry associations in Bengaluru believe that the flooding and recent demolition drive will drive companies out of the city and into other states. A majority of companies are still struggling to recover from the impact of Covid, and the floods have only pushed them further into the red, they said.
Manas Dasgupta, chairperson, IT committee, Bangalore Chamber of Industries and Commerce (BCIC), said the losses incurred by companies because of heavy rain and flooding is very difficult to quantify. The Rs 225 crore loss that was attributed to rain is inaccurate, but it is definitely higher. The notional and reputational loss faced by companies is huge, he said. If the situation persists, companies will definitely consider moving out of the city.
Industry blames poor planning
It will become their natural instinct to look for alternatives if they face similar losses a few years down the line. The quantification of losses might be ten times if the situation does not improve two years later, Dasgupta warned. Rupa Rani, director, FKCCI, said it is possible that a few companies might consider relocating, especially those working out of rented spaces.
But it is difficult to shift their entire business setups, especially those owning properties in the city, she said. The Outer Ring Road Companies Association too had raised similar concerns, saying if infrastructure issues are not addressed, companies will seek alternative destinations. But industries in Peenya are willing to fight for better governance rather than move out of the city.
“We have suffered losses due to rain, with drainage systems dysfunctional in many parts. The infrastructure is poor, with no planning being done by BBMP or any other authorities. Yearly meetings on how to deal with the situation would have been helpful. But we cannot move to another city, because we can’t give up land because of poor governance. Our association is fighting for a better system,” said Shiva Kumar R, vice-president of Peenya Industries Association.