Transport industry stops 80% operations due to lack of cash

Transport agencies in Gautam Budh Nagar said they have stopped operation of nearly 80% of their goods carrier vehicles as they are unable to pay the drivers and helpers for daily expenses, taxes and other expenses. Transport agencies said the demonetisation has hit them hard.

Transport agencies in Gautam Budh Nagar said they have stopped operation of nearly 80% of their goods carrier vehicles as they are unable to pay the drivers and helpers for daily expenses, taxes and other expenses. Transport agencies said the demonetisation has hit them hard.

According to the Noida Transporters Sanyukt Morcha, a body of transport agencies, an amount of ₹15,000-₹20,000 is required as daily expenses for running a vehicle. (HT)

According to the Noida Transporters Sanyukt Morcha, a body of transport agencies, an amount of ₹15,000-₹20,000 is required as daily expenses for running a vehicle.

Owners said they are unable to pay drivers and helpers, who have stopped operations as a consequence.

There are over 10,000 vehicles in the district that are engaged in carrying goods across the country and they are dependent on cash for daily expenses. Transport agencies said the demonetisation of ₹500 and ₹1,000 notes, and restrictions on withdrawal have affected their functioning.

“Now, we cannot now withdraw ₹15,000 or ₹20,000 per day, even to run a single vehicle. We have no new currency. This crisis has forced us to stop our business for the time being. Drivers and helpers need hard cash to eat and pay challans and taxes on a daily basis. The sudden cash crunch has appeared as a major hurdle,” Ved Pal Singh, president of the Noida Transporters Sanyukt Morcha, said.

“At tax collection points, officials of the municipal corporations concerned are not helpful and they are not accepting old currency notes,” Pal said.

To enter Delhi alone, the truckers have to pay ₹1,600, including the environment tax and the corporation tax.

“Though we support the government’s move, we are unhappy with the current situation. Ours is a huge industry, based on daily cash transactions. We are helpless now and have no way but to keep our vehicles off the roads. However, we will wait and review the situation at the end of the month,” Haji Nisaruddin, treasurer of the Morcha, said. He said that resentment has gripped the industry.