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N E W S I N ..D E T A I L |
Friday, October 22, 1999 |
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Issues & players NEW DELHI, Oct 21 The steep hike in the price of diesel is the main issue of contention between the truckers and the government even though the All-India Motor Transport Congress (AIMTC), which is spearheading the strike has sneaked in some more demands of theirs. The AIMTC President, Mr O.P. Agarwal, says the price of diesel, which has been increased approximately by 40 per cent from October 5 has come " as a bolt from the blue", to the transport industry. His contention is that the Indian economy is passing through a recession and it has affected the production of all industries, particularly the core sectors, like steel and cement. Underutilisation of capacity in industry has badly affected the transport sector. Up to 1996, road transport was carrying 54 lakh tonnes a day. After the recession in 1997, it came down to 50 lakh tonnes a day. In 1999, it has come down to 44 lakh tonnes per day. The government is however of the view that a free-pricing mechanism for oil products, in tune with international prices, was a decision taken by the United Front government. However, due to electoral compulsions, the hike could not take place leading to a massive increase in the oil pool deficit. If the increase had not taken place, the oil pool deficit would have touched Rs 10,000 crore. Finance Minister Yashwant Sinha has been at the forefront demanding that there should be no rollback in diesel prices as any move to artificially suppress prices would be disastrous for the economy. The AIMTC, however says, the figure given by the government, that it would collect Rs 6,600 crore from the hike in diesel prices was far away from the truth. The transport sector consumes 1,64,800 kilo litres of high speed diesel per day at a cost of Rs 177.98 crore at pre-revised rates. After the revision the same quantity will cost Rs 242.70 crore, which per annum works out to Rs 23,622 crore. The increase in prices of crude oil in the international market also means that the government is collecting more of import duty. From the governments side Petroleum Secretary S. Narayanan and Transport Secretary Ashok Joshi are dealing with the strikers. At the political level Surface Transport Minister Nitish Kumar and Petroleum Minister Ram Naik are holding the forte. The government, while refusing to roll back prices has offered a sop to the agitating transporters that it would incorporate price escalation clauses in long-term contracts involving ministries and government departments to share the price hike. The government contention is that the average international price of crude per barrel was $ 12.4 in April and $ 21.9 in September this year, registering an increase of 76 per cent. The international price of diesel went up from $ 97 per tonne in April to $ 161.8 in September. Compared to a 66 per cent increase in the international price of diesel, the Centre has effected a hike of only about 35 to 40 per cent in domestic diesel prices. Other demands of the
transporters include, there should be no toll charges on
new highways and there should be service roads along with
the toll roads. |
Goods traffic comes to
standstill CHANDIGARH, Oct 21 Movement of all goods traffic by road in Punjab, Haryana and Himachal Pradesh today came to a standstill. The truck operators protesting against the record hike of 35 per cent in the price of diesel have gone on indefinite strike. Describing their firm resolve to continue the all India strike, the operators here said, "This was a strange gift from the BJP government even before it was sworn in office. We would not rest till the hike was withdrawn. This would have cascading effect on the prices down the line. The government might be collecting Rs 660 crore, but the consumers would end up paying three times more." The transporters are doing no new bookings, a transport association spokesman has said, adding that they were accepting deliveries of those goods from far off places which had been done prior to the commencement of the strike. Punjab Food and Supplies Secretary, Mr P Ram said that Deputy Commissioners had been asked to mobilise all resources, including essential commodities, in view of the truckers' stir. He said services of tractors and trailers would be utilised for lifting of paddy from the mandis. The Punjab as well as the Haryana Government has not yet invoked the Essential Services maintenance Act (ESMA) in the wake of the strike. In Haryana the state transport authorities had been requested to allow transportation of vegetables, bread and other daily necessities by buses during the strike. The Deputy Commissioners in Haryana had been asked to ensure that petrol and diesel stations and kerosene pumps were filled to capacity Movement of goods in Haryana was severely hit as truck operators started an indefinite strike in support of their demand for immediate rolling back of diesel prices. According to reports reaching here trucks mostly remained off the road in Ambala, Sonepat, Panipat, Rohtak, Hisar and other major towns and various transport companies and transport unions refused fresh bookings for carriage of goods. The impact of the strike was more pronounced in industrial townships where trucks are in great demand for transportation of raw material and finished goods. Long rows of trucks parked along the main road could be seen in every town and the impact was discernible on the GT Road on which the traffic declined significantly. The strike also affected the paddy procurement in the main mandis. An official spokesman, however, maintained that the strike had not made much impact, except in Ambala and Panipat where loading was stopped at 11 a.m. He claimed that the movement of wheat and other essential commodities was continuing uninterrupted. The government had allowed transportation of goods in tractor trolleys and buses to maintain the supply line. No untoward incident was reported from anywhere in the state and the strike was peaceful. The government has so far not invoked the Essential Services Maintenance Act to deal with the stir. The real impact of the agitation will be felt if the strike continues for a couple of days. Meanwhile, the Punjab Pradesh Congress Committee (PPCC) has expressed deep concern over the strike call by truck owners. PPCC General Secretary Ramesh Singla said this would further add to the rising prices already galloping due to "wrong policies" of the government. He expressed the
apprehension that strike by truck owners may result in
scarcity and further increase prices of essential
commodities. This strike may disrupt the supply of such
commodities adding to the miseries of the common man, he
said. |
Stir reports from the region SHIMLA, Oct 21 Truck operators observed complete strike in Himachal as the indefinite strike on the call of All-India Motor Transport Congress (AIMTC) for withdrawal of 35 per cent increase in diesel price started this morning. The strike did not have much impact on the supplies on the first day as the trucks already en route reached their respective destinations but the businessmen feared shortage of commodities if the strike continued. Milk and vegetables supplies were not affected today but shortage of petroleum was reported from some places. Most of the trucks reaching Himachal were from Punjab and movement of trucks from Delhi and other places had stopped. The Chief Secretary, Mr A.K. Goswami, said the government was monitoring the situation. The government was keeping a constant watch on the prices and availability of various commodities and would make every effort to ensure that supplies reached the state without any disruption, he remarked. He said trucks of the Public Works, Irrigation and Public Health, Forest and other Departments were being requisitioned to maintain the supply line. Except for Mandi, Bilaspur and Solan districts, trucks were plying normally within the state, including districts of Una, Kangra, Kinnaur and Lahaul Spiti, the Home Secretary Ajay Prasad informed. The Home Secretary said instructions had been issued to the Deputy Commissioners to keep a watch on the availability of essential commodities in their respective districts and take all possible steps to ensure that supplies without any disruption. LUDHIANA: Work at the Local Transport Nagar remained paralysed in wake of the nationwide stir called by the truck operators who are demanding roll back in the price of diesel. There was almost no movement of trucks in the area which is otherwise buzzing with activities. Meanwhile, the Chamber of Industrial and Commercial Undertakings (CICU) has expressed concern over the indefinite strike call by the truck operators as it would adversely affect the trade and industry. Mr Inderjit Singh Pardhan, president of the chamber, appealed to the government consider the rolling back of the hike in diesel price and pave the way for the truckers to call off the stir. PANIPAT: The strike call by the All-India Motor Transport Congress (AIMTC) evoked a mixed response from different transport unions in the district. By and Large, the unions suspended their inter-state bookings but the transport operations within the state were made available. Mr Ramesh Kumar, a representative of the local Truck Union, said the union with 850 trucks under its charge had suspended inter-state bookings. But if load bookings were received for Delhi, Punjab and Haryana, the drivers were willing to carry the load. He said the union had not received any instructions from the AIMTC about the strike so far. Representatives of the Public Carrier Medium Transport Union said the union had increased the freight charges by 25 per cent from October 16 and it was not observing full strike. AMRITSAR: The entire transport operation came to a standstill here on Thursday on the call given by the All India Motor Transport Congress (AIMTC) in protest against steep hike in diesel price. A spokesman of the local Transporter Association said here that over 150 truckload of goods arrived daily carrying perishable and other consumer items.The impact of the total strike was likely to be felt in the next few days, he added. The All-India Retailers
Federation here assured the government that it would try
to maintain price line in spite of poor arrivals from
outside. The president of the federation, Mr Uttam Chand
Chawla, said retailers had been advised to keep strict
vigil over the prices so that the consumers were not
cheated. |
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