Deadlock between truckers, Adani cement enters Day 52 in Shimla
Truck unions have now given the government two days to notify the new freight rates.
There seems to be no end to the deadlock between truckers and Adani group of cement companies over frieght rates with the former’s protests entering Day 52 on Saturday.
Truck unions have now given the government two days to notify the new freight rates.
On Friday, Himachal chief minister Sukhvinder Singh Sukhu had held another round of talks with various representatives of truck unions in Shimla, but failed to end the impasse.
Truck unions are demanding the freight for transportation of cement from factories in Barmana in Bilaspur and Darlghat in Solan to be fixed at ₹10.15 per tonne, per kilometre.
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“The government had asked truck unions to give its rates. We have submitted our rates and set a two-day ultimatum. Following this, the union will meet again to draw the future course of action,” said Jai Dev Kaundal, president, Solan district truck operators union.
More than 10 unions participated in the meeting on Friday evening.
At present, the transportation rate per quintal for cement is ₹10.58 per kilometre in hilly areas and ₹5.38 in the plains. The truck unions and company officials have held several rounds of the meeting after the impasse, but both have voiced “substantive” differences. The company had initially offered ₹6 for the transportation of cement in hills. The state government wants the company to bring down the cost of cement in Himachal. The transportation cost of cement is more in Barmana in Bilaspur at ₹11. 20 paisa.
“The state government discusses the freight rates with the management of the two factories,” said Sukhu, adding, “I have instructed officials of departments concerned to hold talks with the factory management within two days.”
The government is losing ₹60 to ₹80 crore daily ever since the plant has been shut down on account of electricity, VAT and GST,” said industries minister Harshwardhan Chauhan.
The Adani Group on December 14 indefinitely suspended operations in its two cement plants ACC Barmana, and Ambuja Darlaghat after a dispute with truck unions over freight rates which has created a livelihood crisis for thousands of families. The CM had sent two teams of mining and industries department officials to inspect the land allotted for mining to two companies. The Adani Group management blamed transporters for controlling all operational decisions relating to the transportation of material. It has stated that their unbridled control without authority or accountability is resulting in inefficiencies. On the other hand, truck unions allege that Adani Group wants the truck unions to agree to rates which are not
viable. On December 20, the Adani group had once again written to the government, blaming the truck unions for deadlock.
“The genesis of the problem in Himachal Pradesh is that due to historical reasons, the transportation market is completely controlled by transport unions. These unions not only decide the rates and deployment of trucks but also whose material should be transported and even the destination for each truck,” said CEO, cement business, Adani Cement (ACC and Ambuja Cements), Ajay Kapur, in a letter written to the chairperson of the standing committee. Adani group has called for a long-term solution to address the root cause of the problem by freeing the transportation market from the control of the unions as is the practice in other states. Adani said there was a requirement of only 550 trucks in both Ambuja and ACC’s requirement of 3,311 truck deployment.
