Begin typing your search...

    ‘Trucks would be forced to go off roads’

    Over the last three days an image of a press release from the All India Motor Transport Congress (AIMTC) stating that the tucks would go on an indefinite strike due to the problems created by demonetisation has been spreading like wild fire.

    ‘Trucks would be forced to go off roads’
    X
    Fact File

    Chennai

    AIMTC leaders said they have no plans to go on a strike but they would be forced to go off road as they don’t have cash in hand to operate their fleet.
    Managing committee member of AIMTC NP Velu said that 25 per cent of the close to 3 lakh trucks in Tamil Nadu already have been forced to go off road due to the unavailability of cash in hand in lesser denominations and inability to withdraw money from ATMs to meet the expenses on the move. “The common man will feel the heat when more trucks go off road,” he added. Mr. Velu said that fuel, toll and money given to regional transport office staff at the inter-state borders are the main recurring expenses, followed by food and personal expenses of the driver and crew. 
    “Many operators have fuel cards using which they fill the tanks in other States. But, there are quite several operators who are yet to get accustomed to cashless operations,” he said. 
    “We are now giving money in lesser denominations to our stranded drivers through drivers who are going in that route,” he said. Toll fees accounts for close to 15 per cent of the expenses. This would not be a problem till November 14 as the government at the centre has said that toll plazas will not collect toll fees. This would become an issue if toll fee collection resumes. The other major issue of concern is bribery that is prevalent across the country in the inter-state borders. 
    A leading operator said that they should give Rs. 200 at every bordering check post and this is unnecessary expenditure. “Now the personnel manning the check posts are demanding notes in the denomination of Rs. 100 or they are refusing to give change after accepting currencies in the denomination Rs. 500,” he said and lamented that this is making trips expensive. 
    Former AIMTC national president G.R. Shanmugappa said that they don’t plan to go on a strike as they want to support the Union Government’s decision to put an end to unaccounted money transactions. “We want the Union Government to consider our plight and meet our demands and help us sail through this tough transition phase,” he added. 
    The road transport congress wants waiver of toll fees collection and allow filling fuel with the demonetised currencies, till the end of this month. Ensuring availability of currencies in lesser denominations in ATMs, increasing the withdrawal cap and extending the deadline for paying various taxes till then are their other demands.
    Freight industry faces Rs 100 crore loss daily
    Demonetisation has severely hurt the freight industry, which is dependent on cash transactions. Lorry operators are facing huge losses as 70% of freight vehicles have been forced to stay off the road.
    Over the last few days, only 3.5 lakh lorries and small goods transport vans out of the total 11.5 lakh vehicles have been plying across Tamil Nadu. Shortage of cash has forced many truckers off the road. In Koyambedu, where 600 vehicles usually ply, only 200-300 vehicles are currently in operation, said R Sugumar, President, Tamil Nadu Lorry Owners Federation (TNLOF). 
    “Due to the cash shortage, the goods transport industry is facing a loss of Rs 100 crores per day. The cash limit of 20,000 Rs for withdrawals is insufficient for our daily requirements, which is Rs 40,000 per truck. If someone wants to release 20 trucks, he will need 8 lakhs of cash per account to manage the movement of trucks and drivers for meeting daily expenses,” he said, adding that the load volume too has dropped by almost 60%, hitting the industry. The withdrawal limit, which will go on till November 24, will result in the transport industry coming to a grinding halt.
    “It will take a toll on not just the transport industry but the entire manufacturing sector, traders and government projects. The impact on economy will be enormous,” said Pradeep Singal, National President, All India Transporters Welfare Association (AITWA) at a recent press conference. While the truckers welcomed the exemption of toll charge, they hoped it would be extended till the end of the month, as ATM and banks still don’t have enough currency to dispense. Cash shortage has affected the daily life of lorry drivers and cleaners. M Thangavelu, Vice President, Southern Region Bulk LPG Transport Owners Association, said that many drivers are going hungry without cash in hand. “Some petrol bunks are providing food for the drivers but many don’t have enough money to even buy food. We have changed as many notes as possible but it is not enough,” he concluded.

    Visit news.dtnext.in to explore our interactive epaper!

    Download the DT Next app for more exciting features!

    Click here for iOS

    Click here for Android

    migrator
    Next Story