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Lowering freight a major challenge for management of Adani cement

Lowering freight a major challenge for management of Adani cement

Trucks parked at Darlaghat after Ambuja Cement plant closed its operations on Wednesday.



Tribune News Service

Ambika Sharma

Solan, December 15

Lowering the rate of freight for transporting cement has become a major challenge for the management of Adani cement which had recently taken over the reins of Ambuja Cements Limited at Darlaghat and ACC Gaggal in Bilaspur. In a bid to cut down its operational cost, several measures had been floated by the company in the last few months.

How the trouble began

  • The company management had circulated a consent form on November 15 and given truckers 90 days to furnish the details of trucks owned by them or their family members engaged in transportation work. They were asked to opt for transportation work or a job in the company as it led to conflict of interest
  • About 70 employees worked at the company and also owned trucks which were engaged in the transportation work. While some truckers had opted to avail the option, others had termed it as a coercive tactic. This was the beginning of the trouble for the new management

CPM slams Adani group

Slamming the Adani Group for shutting down its cement plants, the CPM’s state committee has urged the government to intervene and reopen the plants immediately. “Shutting down these plants is an assault on the livelihood of thousands of families. These people have given their land to set up these cement factories,” said CPM’s state secretary Onkar Shad.

The company management had circulated a consent form on November 15 and had given truckers 90 days to furnish the details of trucks owned by them or their family members that are engaged in transportation work. They were asked to opt for transportation work or a job in the company as it led to conflict of interest.

There were about 70 employees who worked at the company and also owned trucks which were engaged in the transportation work. While some truckers had opted to avail the option, others had termed it as a coercive tactic and had not given their consent for the same. This was the beginning of the trouble for the new management which was aiming to cut down its operational cost.

Since truckers comprise a major chunk of the vote bank, successive governments have tried to keep them in good humor. This has, however, led to high rate of cement in Himachal vis-à-vis the neighbouring states despite it being a manufacturing state.

Several agitations have taken in the past over the freight issue and it had even led to suspension of production for several weeks in the past.

Closure of the plant will hit developmental works in the government as it also caters to the government supply.

The civil supplies corporation has fixed a freight of lower rate of Rs 9.06 per ton per km (PTPK) for transporting cement for various government works as against the higher rate of Rs 10.58 PTPK existing for the transportation in the hills.

Attempts to lower the freight by the management will also lead to lowering of these rates for the government sector.

About The Author

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

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