Tuesday, February 7, 2012

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN





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Gandhi’s De Grunwald: “Mumbai is Chaotic”

Updates:

- Hostages held in the Taj Hotel have all been freed.
- Hostages remain at the Oberoi Trident Hotel.
- Gun battles continue at Nariman Point siege.
- More explosions heard at Oberoi Trident.
- Tata says Taj Hotel “Will be rebuilt as it was before”.

Alex De Grunwald, the well known film production director and a personal friend of mine , has reported on scenes in Mumbai direct from his residence at The Royal Bombay Yacht Club, sited just 50 yards across from the sieged Taj Hotel, opposite the Gateway of India, where the terrorists are alleged to have come ashore to attack the city.

De Grunwald, who has worked extensively on post production in blockbuster films such as Gandhi, and several of the James Bond films, has been living in Mumbai for the past six years and has recently been involved with several best selling Bollywood productions. Speaking to him by phone this afternoon he described how he had been having dinner at a restaurant close by the Taj, when he heard automatic weapons fire and the sounds of several explosions around the city.

“The staff then asked everyone to come inside the restaurant from the terrace above, turned off all the lights and asked us to remain on the floor. This was about 10:15 pm last night. We were kept there until 10am this morning and rushed back, under police escort to the Royal Bombay Yacht Club, where I live.

But even from my home which overlooks the Taj, I continue to have my windows drawn and am keeping well away from the windows. The Taj itself still has hostages inside and the building looks as if it has suffered serious damage. The terrorists have been sniping at soldiers and anyone who comes too close or appears threatening.”

Asked about the military presence in the city, he stated “Curiously, it’s seems partially eerily peaceful, and the High Commissioner of Bombay is outside giving interviews. The military presence seems limited, but this may be to calm down the terrorists while they negotiate. Overall though the situation appears highly chaotic, and explosions and occasional gunfire can still be heard. I understand that an area of a square kilometer has been established around both hotels and that a 24 hour curfew is in place within this area. No-one is either coming in or going out.”

When asked about the implications, De Grunwald replied that he “expects Mumbai to bounce back, although the short term effects will put people off from investing in India. But the city is resilient and has been through terrorist attacks before. Security though at 5 star hotels will increase, and the naval patrol of the coast line with fast deployed attack vessels will inevitably be strengthened. But I expect the city to regain its vibrancy once the shock of what has occurred starts to fade. But this situation is still unfolding and we have to wait and see what the outcome will ultimately be.”

Most of the current official fatality total of 101 were killed at the Central Railway Station, with terrorists indiscriminately firing at passengers waiting to board long distance trains. Nearly all were local Indians. About 40-50 hostages are still being held at the Taj Hotel and the Oberoi Trident Hotel nearby, their nationalities remain unknown although is appears visiting American and British nationals were specifically targeted by the terrorists and may have been singled out for hostage taking. The area remains under heavy security while the impasse continues.

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