Both Federation of Indian Chambers of Commerce and Industry (Ficci) and the Confederation of Indian Industry (CII) said that they would support any move of the government to manage the disaster including an additional surcharge on corporate income tax.

"Ficci stands by the government in the national relief effort to rebuild Gujarat. This is a massive job and will have to be accomplished by tapping every resource available," Ficci president Chirayu Amin told The Financial Express.

CII deputy director-general S Sen said, "It will support the government's move, even if there is an increase in the one per cent surcharge levied at present for natural calamities." He, however, added that the other 10 per cent surcharge on corporate income tax must be abolished.

While the government will surely give grants, but much more funds will have to flow from the private sector, commercial banks, financial institutions and other institutions, Ficci said.

"In this context Ficci reiterates its stand on the need for fiscal correction and tax reforms, and we at Ficci recommend mobilisation of additional resources through surcharge if the occasion so demands. However, this must be temporary in nature and be withdrawn on completion of the task," Mr Amin said.

At present, companies pay 11 per cent surcharge on corporate income tax, of which one per cent was introduced to finance national calamity relief.

According to Ficci estimates, damage to buildings and constructions has been extensive and ground level estimates from Ahmedabad put the losses at between Rs 12,000 to Rs 15,000 crore.

GDP losses because of absence of workers from factories and complete stoppage of work is estimated about Rs 3,500 crore to Rs Rs 4,000 crore. Ficci has arrived at this figure on the presumption that daily losses from the absence and stoppage of work at factories and facilities has been to the tune of Rs 500 crore a day.

Losses due to damages to infrastructure facilities have been estimated at about Rs 2,000 crore to Rs 3,000 crore. Damages to factory and production units have been tentatively put at Rs 1,500 crore.

CII has estimated that the industrial units under these circumstances will operate only at 50 per cent of its current capacity over the next few days. "There has been a total breakdown of electricity supply, roads and telecom network in the Kutch region", a statement adds. The fury of Friday's earthquake has claimed over 20,000 lives and is estimated to have cost the nation at least Rs 25,000 crore apart from a daily production loss of Rs 500 crore. "Based on estimates of losses of different types, Federation of Indian Chamber of Commerce and Industry (Ficci) fears the quake damage to be of order of Rs 20,000-25,000 crore," he added.