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Transporters need immediate rescue package or else there will be turmoil, warns AIMTC

PTI
Updated: May 21st, 2020, 21:02 IST
in Coronavirus, National
0
Trucks

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New Delhi: Transporters are reeling under severe financial stress. If the government fails to intervene, the transporters will be left with no other option than to stop running the vehicles. This was announced Thursday by industry body All India Motor Transport Congress (AIMTC). The AIMTC is the apex body of transporters representing about 95 lakh truckers and entities in India.

Financial turmoil

“The transport fraternity is in extreme financial turmoil. If the government does not provide immediate help 30 per cent vehicles (on roads now) will stop functioning.  They will not be able to comply (with) the financial implications to run their vehicles or pay the EMIs,” AIMTC president Kultaran Singh Atwal said.

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Warning issued

Atawal pointed out that it may result in scarcity of essential supplies and increase in prices.

“We help the country in maintaining the supplies of essential commodities so that the people of the country do not go hungry. The government announced Rs 20 lakh crore package. However, not a single announcement was made for the road transport sector. More than 20 crore people are dependent upon this sector,” Atwal informed.

Plight of transporters

The AIMTC chief said he has repeatedly requested the government for a minimum rescue package for the road transport sector. It includes COVID-19 insurance for drivers, deferment of EMIs for six months, and extension of validity of motor insurance. However there has not been any response from the government, he alleged.

Atwal alleged that the government has turned a blind eye towards their plight. He said extension of validity of motor insurance ended May 15, 2020.  Without third-party insurance, the vehicles cannot run on roads. Validity extension has not been done. So members are not able to pay up for this, as the average for a single truck comes to about Rs 60,000, he said.

“Apart from that there are other expenses like salaries, EMIs, taxes, establishment cost, rentals and maintenance.  Without proper financial package the vehicle owners are facing huge problems,” the AIMTC said in a separate statement.

PTI

 

 

Tags: AIMTCEMIsessential commoditiesInsuranceTransporterstrucks
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