Pandemic, petro prices hit transporters
KANPUR: The prolonged pandemic due to coronavirus and incessant rise in fuel prices has weakened the transporters to point of collapse.
The transporters are unable to pay the installments against the vehicle loans they had taken from the banks. As a result, the banks have taken 9,000 trucks over default in payment in Kanpur alone.
“Every transporter is facing serious hardships. While the corona rendered us without work for a long period of time, the hike in fuel prices and toll tax dealt inexplicable whammy. Some 9000 trucks bought with the loan money have been taken away by the banks,” said Manish Kataria, general secretary, UP Motor transport association.
In total, 78 transport companies defaulted on payments and lost certain assets to the banks and other finance companies, he said.
The transporters in Kanpur have total 48,000 heavy vehicles.
According to a report by Unified Metropolitan Transport Authority (UMTA), by the time 15% of trucks could get back on roads in June the installments of 35% of trucks had become irregular last year.
With passage of time situation improved and transporters began paying back, said Kataria.
Further, the transporters were given 20% extra loan under Emergency Credit Line Guarantee Scheme (ECLGS) and given relief from paying installments for a period of six months.
“Despite 60% of work was left, the relief measures helped, and transporters managed somehow,” he said, adding the second wave delivered a severe blow. It coincided with rising prices of diesel, which became Rs 17 costlier. “The toll became 50% extra; in absence of any demand the transport fare remained unchanged. Kanpur transporters faced a loss of Rs 800 crore,” he said.
Ratnesh Shukla, a transporter said, “I cannot explain what I am going through, there is no relief, the rebates are merely on papers. We are paying penalty on every delayed payment. What to say about others I am defaulting on my payments and my trucks could be seized by finance companies anytime,” he said.
Lovey Gandhi, former president of Kanpur Motor transport Association, said the finance companies were on prowl and seizing the vehicles at will. The finance companies have stepped up the activities after the supreme court, which said in an order passed in October last year that if a finance company seizes a vehicle as person failed to pay installments would not be categorized as a crime.