Bengaluru's 'Silicon Valley' image sullied by Cauvery water protests; Karnataka suffers loss of Rs 25,000 cr

Karnataka is estimated to have suffered a loss of around Rs 22,000-25,000 crore with the wide-spread agitation hitting transport services and businesses in the wake of violence over Cauvery water dispute, Assocham has said.

The industry body further said that violence in the state capital and other parts of Karnataka has "severely dented" the image of Bengaluru as the Silicon Valley of India, which is home to many of the Fortune 500 companies, making a fervent appeal for peace in both Karnataka and Tamil Nadu.

(Also Read: Cauvery water row: Airlines waive off flight cancellation charges)

"With widespread damage to vital urban infrastructure, interruption in the transport including, roads, rail and air and inability of the workforce to safely move to and from offices and factories, Karnataka, particularly Bengaluru city, is estimated to have suffered a loss between Rs 22,000-25,000 crore due to Cauvery dispute related violence," it said.

"The way the violent incidents had spread is demoralising the business and industrial community, particularly in the capital city of Karnataka. The image that India built around Bengaluru as its 'Silicon Valley' is being sullied," Assocham Secretary General DS Rawat said.

Meanwhile, the violence in the Cauvery water dispute claimed its second life on Monday, as an uneasy calm hung over worst-hit Bengaluru amid sporadic protests in Karnataka and Tamil Nadu marked by targeted attacks.

(Also Read: Cauvery row: Karnataka CM Siddaramaiah asks PM Modi to intervene)

Leading Bengaluru-based companies like TCS, Infosys, Flipkart and Amazon kept their offices shut on Tuesday.

"While the water is a basic requirement and an emotional issue, the situation is being exploited by miscreants, scaring away the peace loving workforce which has settled in both Bengaluru and Chennai from all over the country and even abroad," Rawat said.

According to Assocham, widespread loss would accrue to IT and ITeS facilities due to poor attendance for the last few days and the inter-state tourism particularly involving pilgrims and domestic travellers has been affected. Cancellation of air tickets have also been reported to and from Bengaluru, it added. 

Likewise, industrial production, movement of cargo and retail trade including malls, cinema halls and restaurants have been halted.

"All these losses would run between Rs 22,000 crore and Rs 25,000 crore, besides of course immense damage to the goodwill of the state as an attractive investment destination," the chamber said.

(Also Read: Pro-Kannada activists vandalise shops and buses in Bengaluru)

It also urged the Centre to effectively monitor the situation and ensure that peace is restored in the two states.

IT, e-comm majors shut offices

A day after outbreak of violence over the issue of sharing Cauvery water with Tamil Nadu, offices of IT giants TCS, Infosys and Wipro as also e-commerce majors Flipkart and Amazon remained closed in the city on Tuesday.

Many employees were asked to work from home as the companies invoked business continuity plans to ensure there is no disruption to mission critical projects.

India's top three IT firms -- Tata Consultancy Services, Infosys and Wipro -- which have a significant presence in the city declared a holiday today. The three alone have over 70,000 people working at their campuses in the country's IT capital.

In an e-mailed statement, Wipro said: "Wipro has declared a holiday for employees in Karnataka on Tuesday, September 13. In lieu of this holiday, Saturday, September 17, will be a working day for offices of Wipro in the state."

It added that business continuity plans had been invoked to avoid disruption to mission critical projects.

An Amazon India spokesperson said delivery of products has been temporarily impacted owing to the current situation.

"We will resume all deliveries at the earliest. We have advised our employees to work from home today and continue to monitor developments," she added.

Flipkart Head (Supply Chain Operations) Neeraj Aggarwal said the company has stalled operations to ensure safety of its delivery staff.

"We are trying to mitigate all customer impact by keeping them informed about expected delays," he added.

One person was killed and another injured in police firing in Karnataka yesterday as the Cauvery water sharing row with Tamil Nadu turned violent, escalating tension between the two states.

Bengaluru city police, bolstered by central forces, is keeping a tight vigil, particularly in areas inhabited by Tamils and other "sensitive" localities.

Violence targeting Tamil Nadu buses and lorries and other vehicles put the city on edge yesterday and curfew was imposed in 16 police station limits last night. The entire city is under prohibitory orders till September 14.