Truck operators and other vehicle association have gone for indefinite transport strike from yesterday (20th Jul’18). They are demanding to address several problems they are facing like toll and diesel rates rationalization issues, insurance premium and revisions in provisions of E-way bill.
Earlier on Thursday (19th Jul’18) All India Motor Transport Congress (AIMTC) and the Centre concerned Ministry held a meeting to hear the issues faced by transporters but that talks ended at failure. After the failed talks with Union minister, around 93 lakhs truck and other goods services to stay off the road for the indefinite period but essentials services have been remained uninterrupted from the strike. Essential services like water, milk, and medicine, have been exempted from the strike.
SteelMint in conversation with Mr. Rakesh Tiwari, Chairman of Motor Association shared that they have mainly three demands.-
1. Toll and diesel price rationalization- They are looking for one-time toll amount payout across the states in a uniform manner so as to reduce time and diesel consumption. Also increasing diesel prices is a concern and they are suggesting govt. to revise diesel prices every three months.
2. Pragmatic Third-party insurance- Transport Association is demanding to cut down current insurance premium rate which is very high. He said previously they were paying premiums at around INR 15,000-17,000 p.a. now it has been increased to around INR 40,000 p.a. (includes increased commission and 18% GST) which is quite high and issues need to be addressed immediately.
3. Changes in the provision of E-way bill- According to them, govt. has been charging a very huge penalty amount on a very small mistake made during E-way bill making which needs to be resolved immediately.
How has it impacted Indian steel industry?
The major steel manufacturers in central & south India stated “no loading of materials reported from the plants. This is likely to affect the fresh bookings”. Odisha based iron ore traders reported less iron ore movement taking place. Market participants in Gujarat and Mumbai also mentioned that finished steel transportation has been impacted.
The shipbreakers in Gujarat- West India, have suspended sales & offers since transporters have gone on an indefinite strike.
In southern India -, Karnataka where producers are transporting near about 60-80% of sponge iron to the neighbor states, SteelMint learned that very few deals are getting concluded and dispatches have slowed down. Loading vehicles are standstill which is resulting in material getting damaged over rains.
Impact on few major Port operations and Cargo Movements :
Krishnapatnam port has no effects on operations inside the port areas reported by the sources but an outward movement has been interrupted due to strike. Most of the southern India ports like Vizag and Gangavaram have seen similar impacts.
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