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Tectonic systems
The earthquake was caused at the convergent plate boundary between the Indian plate and the Eurasian plate boundary. These pushed together and caused the earthquake. However as Bhuj is in an
intraplate zone, the earthquake was not expected, this is one of the reasons so many buildings were destroyed – because people did not build to earthquake resistant standards in an area earthquakes were
not thought to occur. In addition the Gujarat earthquake is an excellent example of liquefaction, causing buildings to ‘sink’ into the ground which gains a consistency of a liquid due to the frequency of the
earthquake.
1. 56% of the total area of the Indian Republic is vulnerable to seismic activity.
2. 12% of the area comes under Zone V (A&N Islands, Bihar, Gujarat, Himachal Pradesh,
J&K, N.E.States, Uttaranchal)
3. 18% area in Zone IV (Bihar, Delhi, Gujarat, Haryana, Himachal Pradesh, J&K,
Lakshadweep, Maharashtra, Punjab, Sikkim, Uttaranchal, W. Bengal)
4. 26% area in Zone III (Andhra Pradesh, Bihar, Goa, Gujarat, Haryana, Kerala, Maharashtra,
Orissa, Punjab, Rajasthan, Tamil Nadu, Uttaranchal, W. Bengal)
The earthquake devastated Kutch. Practically all buildings and structures of Kutch were
brought down.
Ahmedabad, Rajkot, Jamnagar, Surendaranagar and Patan were heavily damaged.
Nearly 19,000 people died. Kutch alone reported more than 17,000 deaths.
1.66 lakh people were injured. Most were handicapped for the rest of their lives.
The dead included 7,065 children (0-14 years) and 9,110 women.
There were 348 orphans and 826 widows.
Loss classification
Affected 15.9 million people out of 37.8 in the region (in areas such as Bhuj, Bhachau,
Anjar, Ganhidham, Rapar)
High demand for food, water, and medical care for survivors
Humanitarian intervention by groups such as Oxfam: focused on Immediate response and
then rehabilitation
Of survivors, many require persistent medical attention
Region continues to require assistance long after quake has subsided
International aid vital to recovery
Social Impacts
Geographic pattern of ground motion, spatial array of population and properties at risk, and
their risk vulnerabilities.
Low population density was a saving grace.
Holiday
Extra fatalities among women
Effect on dependency ratio
Farming and textiles
Economic Impacts
Total damage estimated at around $7 billion. However $18 billion of aid was invested in
the Bhuj area.
Over 15km of tarmac road networks were completely destroyed.
In the economic capital of the Gujarat region, Ahmedabad, 58 multi storey buildings were
destroyed, these buildings contained many of the businesses which were generating the
wealth of the region.
Many schools were destroyed and the literacy rate of the Gujarat region is now the lowest
outside southern India.
Impact on GDP
Applying ICOR
Rs. 99 billion – deduct a third as loss of current value added.
Get GDP loss as Rs. 23 billion
Adjust for heterogeneous capital, excess capacity, loss Rs. 20 billion.
Reconstruction efforts.
Likely to have been Rs. 15 billion.
Fiscal accounts
Differentiate among different taxes: sales tax, stamp duties and registration fees, motor
vehicle tax, electricity duty, entertainment tax, profession tax, state excise and other taxes.
Shortfall of Rs. 9 billion of which about Rs. 6 billion unconnected with earthquake.
Earthquake related other flows.
Expenditure:Rs. 8 billion on relief. Rs. 87 billion on rehabilitation.
Impact on Revenue
Sales tax losses for February and March 2001 were Rs 115 crore. For 2001-02, the losses
were expected to be Rs 260 crore.
Only 10% of the estimated stamp duty and registration fees were expected to be realised in
February and March 2001, . For 2001-02, collections were expected to fall by 50%.
Motor vehicle tax collections were expected to fall short of budgeted figures by almost Rs
600 crore.
Monthly losses of Rs 4 crore each were projected for electricity duty and entertainment tax.
Professional taxes were expected to be lower by Rs 5 crore in the current year.
Impact on Expenditure
Total relief expenditure (food supplies, medical relief, debris removal, and cash
compensation) was estimated at around Rs 840 crore.
Total rehabilitation expenses were figured at Rs 8665 crore. Housing accounted for the
highest expenditure (Rs 5148 crore), followed by education (Rs 837 crore) and drinking
water (Rs 614 crore).
Total (relief and rehabilitation) expenses amounted to Rs 9,345 crore.
Other Economic Impacts
Non-tax revenues : Interest receipts, irrigation receipts, and royalties were expected to remain largely unaffected.
Municipal finances: Almost 10% of municipal revenues were expected to be lost in a year.
Banking : 68 commercial bank branches were fully damaged and 80 branches were partially damaged.
Financial market: The wealth loss was expected to lead to reshuffling of peoples’ portfolios and affect asset market behaviour.
Employment: Nearly 5 lakh people were expected to become unemployed. Employment in salt, ceramic, and small-scale industries (including refractories, powerlooms, cotton ginning etc.) was worst
affected.
Financial arrangements
Calamity Relief Fund (CRF) in each state.
The CRF allocation during the period 2000-05 has been increased to Rs 11007.56 crore as compared with Rs 6304.27 crore during 1995-2000.
The efforts are supplemented by provision of additional assistance from National Calamity Contingency Fund (NCCF) during severe calamities.
ADB and World Bank’s Gujarat Earthquake Assessment Mission visited Gujarat during
February 11-22, 2001 for assessing the economic impact of the earthquake.
The disaster loss was estimated at Rs 99 billion.
Reconstruction costs were estimated at Rs 106 billion.
The annual loss of state domestic product was estimated at around Rs 20 billion (assuming
an ICOR of 4) for the first 12 months.
Response & Rescue opertion
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