Date:05/01/2009 URL: http://www.thehindubusinessline.com/2009/01/05/stories/2009010551630300.htm
Back Transporters to go ahead with strike as talks fail

Goods vehicle owners’ body not joining stir.


Our Bureau

New Delhi, Jan. 4 The All-India Motor Transport Congress (AIMTC stuck to its stand of launching an indefinite strike from tomorrow (January 5).

A fresh round of negotiations between AIMTC members and Government officials – from the Road Transport Ministry, NHAI, Petroleum Ministry, CBDT and Customs – held on Sunday morning failed.

List of demands

AIMTC has a long list of demands that include total exemption from service tax to road transport industry, scrapping of registration and return filing requirement in the Carriage by Road Bill 2007; reducing the diesel prices by at least Rs 10 a litre; reducing the price of tyres by at least 35 per cent; moratorium on all instalments and waiver of interest on truck finance for at least six months; not imposing toll tax for six months; and free movement of all vehicles all over India without any national/State permit and related taxes.

According to AIMTC, the move has been prompted by the Union Government’s failure to implement its promises made to it during earlier agitations also the one held in July last year. Mr Charan Singh Lohara, President, AIMTC, told Business Line at the time of going to print, “As of now, we have no plans to call of the strike. The Government had no concrete offers for us in today’s meeting.”

NO SUPPORT

Another body of transporters, the All-India Confederation of Good Vehicles Owners’ Association (ACOGOA), is not extending its support to the AIMTC strike. “We continue with our stand of not extending support to strike called by AIMTC. Our members will continue to lift goods from wholesale mandis on Monday unless they are coerced or threatened by AIMTC members,” said Mr B. Channa Reddy, President, ACOGOA.

According to Mr S.P. Singh, Senior Fellow, Indian Foundation of Transport Research and Training (IFTRT), “Goods transport is unlikely to be impacted significantly by the strike on Monday with ACOGOA not extending its support. Till Saturday evening, cargo had been booked for both long and short distances from Delhi. In the nationwide strikes planned in 1999 and 2004, the long distance bookings were tapered off a few days before the final day of strike.”

GOVERNMENT’S STAND

According to top Road Transport Ministry officials, each demand of AIMTC was discussed threadbare. On diesel price reduction, the Petroleum Ministry officials said while there can be no assurances, the Government is tracking crude prices and according to prevailing market conditions, a decision will be taken at the highest levels. On reducing tyre prices by 35 per cent and breaking cartelisation in the tyre industry, AIMTC was told that the matter needs to be proved in MRTPC and taken up with the Commerce Ministry.

On allowing transporters to accept or pay cash of over Rs 20,000 to their subcontractors like truck owners, the officials from income-tax department said, “This is not possible as this will increase corruption.” The AIMTC wanted exemption of limit for paying cash to transporters or by transporters to sub-contractors like truck owners retrospectively. The limit is Rs 20,000 at present. On service tax issue, the decision is to be taken at the “highest levels” of Government, said a source.

The NHAI officials opposed the demand of stopping collection of highways toll for six months, it is learnt. On the Carriage by Road Act 2007 rules, the committee formed to finalise rules is yet to give final decision and AIMTC is also a part of the committee. On State permit fees and related taxes, the Road Ministry pointed out that State Governments are the concerned authorities.

On the demand for moratorium on all instalments and waiver of interest on truck finance for at least six months, the representative from Department of Financial Services said it can issue some advisories at the most for a decision on case-to-case basis. But on waiver of interest on truck finance, the representative said the banks cannot be asked to do so unless the Government takes a decision at the highest level.

Related Stories:
AIMTC calls for indefinite strike from tomorrow
2008: Many a roadblock in highways
All-India goods vehicle owners calls off strike

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