Financial Daily from THE HINDU group of publications
Wednesday, Nov 10, 2004
Financial Daily from THE HINDU group of publications Wednesday, Nov 10, 2004 |
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Logistics
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Roadways Helmet `mela' in Hyderabad Our Bureau
Hyderabad , Nov. 9 THE All India Helmet Manufacturer's Association has assured the residents of the twin cities that there would not be any shortage of helmets. Top office-bearers of the association said they would organise an eight-day helmet mela from November 19. They were here to hold discussions with the traffic police and traffic department to sort out the shortage issue. The mela, to be organised at a `centrally-located' area, will have ten retail counters selling a range of ISI-tagged helmets. Addressing a press conference here on Tuesday, Mr Madhu Khurana, President of the association, said they would cancel dealerships of those who sold helmets in the black market. Of the 25 manufacturers that conformed to statutory standards, 19 are members of the association. Mr Khurana said the Rs 100-crore market was mostly dominated by the unorganised sector. "The organised sector comprises only 20 per cent of the total market," he said. Explaining the reasons for the current crisis, Mr Khurana said dealers were not sure till November 3 (when the helmet rule came into force in the twin cities) whether the rule would be enforced seriously. They were apprehensive because the Government had failed to enforce the rule in at least two occasions during the regimes of the late Mr N.T. Rama Rao and Mr N. Chandrababu Naidu. "Now that they (the Government) are implementing it sincerely, we have decided to ensure proper supply of helmets to the market. We will supply 25,000 to 30,000 every day to the market. There will be no shortage any more," assured Mr Khurana. He, however, said the sales tax on helmets was very high in the State. The tax at 12 per cent contributed to the price add-ons. Referring to the assurance of Government officials, Mr Khurana said the tax was expected to be withdrawn in a couple of days. "This will immediately result in a reduction in the range of 10 per cent," he said. More stocks meant increased competition. "This will bring in another cut in prices." The compulsory helmet rule hit a roadblock with the Transport Minister, Mr Santosh Reddy, criticising the traffic police for misleading him on the issue. The minister made these observations after a surprise visit to shops selling helmets during the weekend.
More Stories on : Roadways | Andhra Pradesh
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