Financial Daily from THE HINDU group of publications
Thursday, Apr 17, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Home Page - Roadways
Logistics - Roadways


As strike begins to bite — Truckers invited for talks today

Our Bureau


Mr B. C. Khanduri

NEW DELHI, April 16

THE Minister for Road Transport & Highways, Mr B.C. Khanduri, has called a meeting with the representatives of the All India Motor Transport Congress (AIMTC) on Thursday, raising hopes of a dialogue with the striking transporters to discuss and find a solution to their demands.

The strike entered the third day on Wednesday affecting the economic activity, and raising the spectre of shortages in large parts of the country.

"I have invited the motor transport operators for a meeting on Thursday," Mr Khanduri said while addressing a press conference on Wednesday.

Stating that there was no reason for the transporters to go on strike when most of their demands are being looked into by various Government agencies, the Minister, however, said that the truckers demand for rolling back the toll collected on highways was "not negotiable".

The users including truckers are benefited by the better facilities provided on highways with the result that they save on fuel and operating costs. "In return, the Government is asking them to pay a small portion out of this savings as toll. This is not at all unreasonable. It is not proper to say stop collecting tolls," Mr Khanduri stated.

The AIMTC demand to amend the Carriers Act, 1865 to provide for mandatory insurance of goods by consignor and consignee will be discussed by the Committee of Secretaries headed by the Cabinet Secretary on April 29, he disclosed. A final decision on amending the Carriers Act would be taken after considering suggestions from the public and on clearance from the Law Ministry.

While some other demands of the transporters such as frequent hike in diesel prices and denial of third party insurance by PSU insurance companies on 8-15 year old commercial vehicles are being looked into by the departments concerned.

The Petroleum Ministry is willing to consider fixation of price on diesel on quarterly basis subject to a variation not exceeding 25 paise. The prices of petrol and diesel are now being pegged to international levels after the administered price mechanism was dismantled by the Government.

"When the oil price increases, the transporters stand to lose, but when they fall, the transporters stand to gain", Mr Khanduri observed.

The Department of Economic Affairs has informed that the complaints regarding excess loading of third party premiums are being attended to. The DEA has also agreed to investigate specific complaints of violation of IRDA guidelines by insurance companies on underwriting commercial vehicles.

The Government agreed with the transporters to check over-loading of vehicles, which has been legitimised by some State Governments. The Ministry has written to all the States to strictly enforce the provisions of Section 114 of the Motor Vehicles Act. Though, it is a State subject, the Centre would take strict action against those States which do not comply with the MV Act. "We are seized off the matter and have already taken action against a few states who were flouting the provisions on over-loading," the Minister said.

While scrapping of old vehicles was done from the point of view of emission norms, Mr Khanduri said that old vehicles complying with emission norms should be allowed to ply. "Here, the Centre has no role to play," he pointed out.

The Government also said that truckers should not be brought under the ambit of the proposed value-added tax (VAT) since trucking industry was a service sector. "They neither produce nor sell any goods," the Minister stated.

Article E-Mail :: Comment :: Syndication

Stories in this Section
S-W monsoon likely to be below normal


AirTel cuts rates
Are foreign lines being wooed to bid for SCI?
HLL posts 8.22 pc rise in first-quarter net
Truckers strike may cast its shadow on Maruti
`Britannia gains most from World Cup promos'
As strike begins to bite — Truckers invited for talks today


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line