 "Truck owners decry ore transportation rate ceiling, threaten strike")
Opposing the recent notification of the ceiling on freight rate for transportation of minerals, the truck owners associations have threatened to go on strike if the government fails to reconsider the rates.
The ceiling was notified for vehicles carrying minerals within and outside the districts of Angul, Jajpur, Keonjhar, Sundargarh and Jagatsinghpur.
"The district level technical committees had recommended the rates taking into account all the expenditures related to vehicles including EMIs on bank loan, salaries to drivers and cleaners, but their suggestion has been completely ignored by the higher authorities. Running trucks on the notified prices will be unsustainable for the vehicle owners. If the government does not reconsider the rates we will go on strike", said Pradip Barik, general secretary, Keonjhar district truck owner association.
"The raw material landing cost for the industries, which are in stress because of steep increase in input cost, will come down. It is a welcome step for all the stake holders", said Prabodh Mohanty, secretary, EZMA.
It may be noted that the maximum freight rate has been fixed at Rs 4.56 per tonne/km for six wheelers, Rs 3.65 for 10-wheelers and Rs 2.9 for 12-wheelers. Similarly, for to and fro movement beyond 100 km per day, the ceiling on freight has been pegged at Rs 6.38 per tonne/km, Rs 5.11 and Rs 4.06 for six wheeler, 10-wheeler and 12-wheelers respectively. The maximum freight for locally moving trucks and tippers up to a distance of 100 km, has been pegged at Rs 2000 per day plus twice the running cost or Rs 3500, whichever is higher. The state government had decided to fix a ceiling on mineral transportation rates at a meeting chaired by chief secretary G C Pati on June 17.
The decision was aimed at putting a ceiling on ore carrying cost to rein in unfair trade practices. A technical committee had recommended the ceiling rates factoring in parameters like amount of ore carried, condition of road infrastructure and traffic frequency. The ceiling rate would be binding on all registered transport agencies and whoever charges higher would not be allowed to transport ore. Truckers in the mineral rich Keonjhar-Sundargarh belt had gone on a strike for nearly two weeks protesting the government's decision to notify the ceiling on mineral transportation cost.
As many as 30,000 trucks were off the roads in the Sundargarh-Keonjhar belt, snapping iron ore supplies to the tune of 200,000 tonne every day during the period of agitation. The agitation by transporters had crippled raw material supplies, forcing steel and pellet makers to cut capacities drastically.
The ceiling was notified for vehicles carrying minerals within and outside the districts of Angul, Jajpur, Keonjhar, Sundargarh and Jagatsinghpur.
"The district level technical committees had recommended the rates taking into account all the expenditures related to vehicles including EMIs on bank loan, salaries to drivers and cleaners, but their suggestion has been completely ignored by the higher authorities. Running trucks on the notified prices will be unsustainable for the vehicle owners. If the government does not reconsider the rates we will go on strike", said Pradip Barik, general secretary, Keonjhar district truck owner association.
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The roads in Koida and Tensa are in very bad condition leading to increased maintenance cost for tippers. The tippers cannot run on profit at the proposed rates, said Sanjib Kumar Khatua, vice president, tipper owner association (Lahunipada) in Sundergarh district. However, the Eastern Zone Mining Association (EZMA), a body of mining lease holders in Odisha and Jharkhand has welcomed the state government's move.
"The raw material landing cost for the industries, which are in stress because of steep increase in input cost, will come down. It is a welcome step for all the stake holders", said Prabodh Mohanty, secretary, EZMA.
It may be noted that the maximum freight rate has been fixed at Rs 4.56 per tonne/km for six wheelers, Rs 3.65 for 10-wheelers and Rs 2.9 for 12-wheelers. Similarly, for to and fro movement beyond 100 km per day, the ceiling on freight has been pegged at Rs 6.38 per tonne/km, Rs 5.11 and Rs 4.06 for six wheeler, 10-wheeler and 12-wheelers respectively. The maximum freight for locally moving trucks and tippers up to a distance of 100 km, has been pegged at Rs 2000 per day plus twice the running cost or Rs 3500, whichever is higher. The state government had decided to fix a ceiling on mineral transportation rates at a meeting chaired by chief secretary G C Pati on June 17.
The decision was aimed at putting a ceiling on ore carrying cost to rein in unfair trade practices. A technical committee had recommended the ceiling rates factoring in parameters like amount of ore carried, condition of road infrastructure and traffic frequency. The ceiling rate would be binding on all registered transport agencies and whoever charges higher would not be allowed to transport ore. Truckers in the mineral rich Keonjhar-Sundargarh belt had gone on a strike for nearly two weeks protesting the government's decision to notify the ceiling on mineral transportation cost.
As many as 30,000 trucks were off the roads in the Sundargarh-Keonjhar belt, snapping iron ore supplies to the tune of 200,000 tonne every day during the period of agitation. The agitation by transporters had crippled raw material supplies, forcing steel and pellet makers to cut capacities drastically.