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The financial meltdown is having an adverse impact in the most unexpected
of sectors. The latest to join the troubled list are the transportation and
mining sectors. Till around 3 months back the entire port of Krishnapatnam
was abuzz with activity. Every single day 1000 to 1200 trucks filled with
iron ore used to dump their load into the ships berthed at the busy port.
Today that number has shrunk to a little over 100. The number of ships,
which in the last quarter were in the 40 to 45 range, has now shrunk to 12
– i.e. 4 ships a month. The result being, the young port is already under
tremendous financial strain. Even more importantly the transport sectors
and the mining sectors have been worst hit. Iron ore coming from mines in
Kadapa and Bellary has now fallen by over 80%. Many mines are on the verge
of closure. And the unskilled laborers who worked in these mines are very
likely to be laid off in the 1st or 2nd week of December this year. These
layoffs will most definitely have an adverse impact on the economy of towns
and villages in Kadapa district.
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