Logistics

Transporters’ union seeks loan moratorium, writes to PM Modi

Our Bureau New Delhi | Updated on June 13, 2021

The second wave saw poor economic conditions and lack of demand resulting in about 60% of the transport vehicles across all segments being non-functional

As parts of India battle the second wave of Covid-19, All India Motor Transport Congress (AIMTC) has reiterated the need for a blanket loan moratorium till September 30. In a letter to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and Transport Minister Nitin Gadkari, the transporters’ union pointed out that the truckers haven’t had any respite in the backdrop of the second wave of pandemic: while the fixed costs have not changed, revenues have dried up.

‘Facing hardship’

The AIMTC has also requested for extension in validity of all vehicle and driver related documents from June 30, 2021 to September 30, 2021 so that those in distress do not have to pay the fees or penalties.

“There have been frantic SOS messages from AIMTC’s members who are facing acute hardship and are fighting to save their vehicles from being seized by recovery agents of banks, NBFCs and financiers,” said AIMTC in its letter.

The second wave of Covid-19 saw poor economic conditions and lack of demand resulting in about 60 per cent of the transport vehicles across all segments (goods or passenger segments) being non-functional.

Operators of such idle fleet are financially crippled and are facing extreme distressful conditions, the Union said, adding that the current scenario in the country has impaired the livelihood of the small operators (both cargo segment, the passenger segment) even as they are forced to pay the statutory fees including establishment costs, payment of salaries, EMIs, maintenance, fitness, permit fees, taxes, insurance, parking fees despite their vehicles being idle.

Such a situation is now impinging on the sustenance of the people associated with the transport sector, said AIMTC adding that it has become a struggle to pay off the monthly loan instalments of the banks taken for different purposes, defaults in paying the EMIs of the banks. Lockdowns has brought a financial pandemic in various sectors of economy of which the transport sector both cargo and passenger. The spike in NPAs and the seizure of transport vehicles (trucks, buses, maxi-cab, tourist taxis) has further dented the sustenance of crores of people dependent on the transport sector.

Published on June 13, 2021

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