Abstract
Recurring heavy precipitation and flooding cause extensive loss and damage in cities like Mumbai. Among the worst affected are Micro Small and Medium Enterprises (MSMEs), which suffer damage to physical structure and loss of business. These costs amount to millions of dollars and are borne by MSMEs in the absence of adequate insurance protection. With limited flood management services and inadequate infrastructure provided by the municipal authorities, MSMEs are implementing their own temporary measures for flood protection. These are often ineffective during heavy precipitation and create risks of maladaptation. As climate change is expected to worsen the risk of flash floods with changes in intensity, frequency and duration of rainfall, MSMEs need long-term solutions to build their adaptive capacity and resilience. This paper describes the business case for private sector engagement in flood risk reduction and climate adaptation from the perspective of MSMEs in Mumbai. Based on extensive field surveys of MSMEs located in industrial estates, the paper discusses the implications of floods for MSMEs. Moreover, the authors present a framework developed for MSMEs to make informed risk reduction and adaptation decisions and implement effective structural and non-structural measures to minimize the recurring adverse impacts of floods on their business operations.
The original version of this chapter was revised: Misplaced tables have been corrected. The erratum to this chapter is available at https://doi.org/10.1007/978-3-319-72874-2_33
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Notes
- 1.
MSMEs are defined here as, ‘micro enterprises: 1–9 employees; small: 10–49 employees; and medium: 50–249 employees’ (Kushnir et al. 2010). However, it is important to note that often times this definition is inconsistent with the realities on the ground, and local definitions should take precedence.
- 2.
The ADMIRE Project is implemented in 14 countries worldwide and aims at developing commercially viable operational and financial frameworks engaging the private sector in climate mitigation and/or adaptation actions. http://www.admireproject.org
- 3.
For administrative purposes, Mumbai city is divided into 24 zones known as ‘wards’. L ward is located in the Eastern suburbs of the city
- 4.
Industrial estate is a common area or site that houses a number of industrial units classified as SMEs that operate in similar or diverse businesses and co-exist for economies of scale in infrastructure facilities such as electricity, water, transport, banking, post office, canteen, etc.
- 5.
Cooperative society is a registered body under the Maharashtra Cooperative Societies Act 1960, where SMEs located in an industrial estate form the society and become members of it. Here, individual SMEs own the premises they operate from and the ownership of industrial estate (comprising common area and infrastructure) is vested with their cooperative society. Member SMEs make annual contribution to the cooperative society for performing various functions.
- 6.
Most industrial estates in Mumbai are 25–35 years old and have seen heights of surrounding plots and adjoining roads increasing compared to their plots. This makes their plots low-lying compared to surrounding areas and more vulnerable to floods.
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Schaer, C., Pantakar, A. (2018). Promoting Private Sector Engagement in Climate Change Adaptation and Flood Resilience—A Case Study of Innovative Approaches Applied by MSMEs in Mumbai, India. In: Alves, F., Leal Filho, W., Azeiteiro, U. (eds) Theory and Practice of Climate Adaptation. Climate Change Management. Springer, Cham. https://doi.org/10.1007/978-3-319-72874-2_10
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