Move to raise truck freight worries cement industry

Ambika Sharma

Tribune News Service

Solan, September 15

The State Civil Supplies Corporation (SCSC) has mooted a proposal to enhance truck freight for transportation of cement from the existing Rs 8.53 per metric tonne per km to Rs 9.06 following demand from transport unions. The corporation buys cement for various development works carried out in the public sector.

A meeting comprising officials of the Transport Department, SCSC, Deputy Commissioner, Bilaspur, and SDM, Arki, was held recently in which representatives of various truck unions were also present, said MD, SCSC, Mansi Sahay.

She said since the freight had not been enhanced since 2014, there was a demand from the truckers to enhance it as the diesel price had increased manifold. The proposed rate of Rs 9.06 had been worked out and a mechanism to review the price every three months had also been devised.

She added that the modalities of seeking a Cabinet clearance were being completed following which these rates would be made applicable for trucks lifting cement for the SCSC.

The development has, however, created tension among cement manufacturers who fear it would have a cascading effect and could lead to a demand for similar hike by the truckers transporting commercial cement.

This has also come as a surprise for investors as 8 to 12 per cent reduction in freight was recently made by the Nalagarh Truck Operators Union following government intervention. This step was taken in view of a series of the investors meets being undertaken by the state government. Since high freight ranging from 20 to 38 per cent was considered a major deterrent for investment, the state government had urged the truck operators at Nalagarh to reduce freight.

This move has again created an atmosphere of doubt among the cement manufacturers as the rates were already high owing to high freight. Any increase in rates of the SCSC would create pressure on them to enhance their freight as well, said a company official.

The SCSC had fixed a rate of Rs 4.38 for other commodities while for cement it was as high as Rs 8.53. This disparity in the SCSC rates was also considered unreasonable by the investors who said the government should re-consider this move.