According to transporters, the order of the National Green Tribunal (NGT) will spell business loss for each and every stake holder. The transporters in the city are complaining that the order of NGT is against the Motor Vehicles Act passed by the Parliament, which provides 12 years of national permit for inter-state operations in the country.
“If implemented in its current form, the 10-year restriction on trucks will crush the transport sector and will benefit only the bankers,” said Manjinder Pal Singh Lovely, president of All India Transport Welfare Association. According to the transporters of Delhi, a six-wheeler truck currently costs Rs 20 lakh, out of which, 85 per cent are financed by banks and financial institutions with an interest rate of 10-12 per cent.
In addition to processing charges, a transporter is required to pay Rs 3 lakh as down-payment and the remaining Rs 17 lakh are financed for seven years on a monthly installment of Rs 40,000 per month. A truck is also charged Rs 20,000 per annum for national permit, Rs 35,000 per annum for premium of the insurance, Rs 5,000 per annum for fitness certificate and Rs 15,000-Rs 20,000 per annum for local taxes of the concerned state government.
The operational cost of such a truck is roughly Rs 15,000 per month - Rs 10,000 per month for driver and Rs 5,000 per month for his assistant. In addition, Rs 200 per quarter are charged for the Pollution Under Control (PUC) certificate. “If you purchase a truck on finance, you will have to cough up around Rs 47,000 per month even if it is stationary,” said R S Khurana, president of Delhi Transport Association.
A financed truck starts giving real profit only after seven years, when it is relieved from repayment of the loan amount, argued Khurana. “As per the Motor Vehicles Act, the national permit required for inter-state operations is valid for 12 years and we earn profits only in the last five years after the repayment of the loan amount,” argued Lovely. Furthermore, even after 12 years, the truck can work in the state concerned as general the life of a truck is around 15 years, after which it has to be dumped, argued lovely.
On the operational aspect of the existing fleet, the transporters argued that most of the trucks are older than 10 years and a sudden ban would adversely impact the supply of vegetables and essential goods in the city. “It takes around two-three days for a truck to complete a ferry from neighbouring states and more, if these commodities are brought from distant places of Madhya Pradesh and Maharashtra. We are already in the process of phasing out the older fleet but we need time,” added Khurana. He further argued that if the duration is reduced for two more years, the transport business will be hit adversely as the profit earning duration would be decreased significantly.
Gadkari assures help
A delegation of transport association of Delhi met Union Transport Minister Nitin Gadkari on Monday to express their concerns on the recent order of the National Green Tribunal (NGT) regarding the 10-year deadline on trucks in the city.
“Gadkari assured us to challenge the order of NGT and provide all the required help within the legal framework,” said Manjinder Pal Singh Lovely, president of All India Transporters Welfare Association.
He further added that in the meeting, the minister assured the transporters to provide relief within the stipulated time period of two weeks.
“If implemented in its current form, the 10-year restriction on trucks will crush the transport sector and will benefit only the bankers,” said Manjinder Pal Singh Lovely, president of All India Transport Welfare Association. According to the transporters of Delhi, a six-wheeler truck currently costs Rs 20 lakh, out of which, 85 per cent are financed by banks and financial institutions with an interest rate of 10-12 per cent.
In addition to processing charges, a transporter is required to pay Rs 3 lakh as down-payment and the remaining Rs 17 lakh are financed for seven years on a monthly installment of Rs 40,000 per month. A truck is also charged Rs 20,000 per annum for national permit, Rs 35,000 per annum for premium of the insurance, Rs 5,000 per annum for fitness certificate and Rs 15,000-Rs 20,000 per annum for local taxes of the concerned state government.
The operational cost of such a truck is roughly Rs 15,000 per month - Rs 10,000 per month for driver and Rs 5,000 per month for his assistant. In addition, Rs 200 per quarter are charged for the Pollution Under Control (PUC) certificate. “If you purchase a truck on finance, you will have to cough up around Rs 47,000 per month even if it is stationary,” said R S Khurana, president of Delhi Transport Association.
A financed truck starts giving real profit only after seven years, when it is relieved from repayment of the loan amount, argued Khurana. “As per the Motor Vehicles Act, the national permit required for inter-state operations is valid for 12 years and we earn profits only in the last five years after the repayment of the loan amount,” argued Lovely. Furthermore, even after 12 years, the truck can work in the state concerned as general the life of a truck is around 15 years, after which it has to be dumped, argued lovely.
On the operational aspect of the existing fleet, the transporters argued that most of the trucks are older than 10 years and a sudden ban would adversely impact the supply of vegetables and essential goods in the city. “It takes around two-three days for a truck to complete a ferry from neighbouring states and more, if these commodities are brought from distant places of Madhya Pradesh and Maharashtra. We are already in the process of phasing out the older fleet but we need time,” added Khurana. He further argued that if the duration is reduced for two more years, the transport business will be hit adversely as the profit earning duration would be decreased significantly.
Gadkari assures help
A delegation of transport association of Delhi met Union Transport Minister Nitin Gadkari on Monday to express their concerns on the recent order of the National Green Tribunal (NGT) regarding the 10-year deadline on trucks in the city.
“Gadkari assured us to challenge the order of NGT and provide all the required help within the legal framework,” said Manjinder Pal Singh Lovely, president of All India Transporters Welfare Association.
He further added that in the meeting, the minister assured the transporters to provide relief within the stipulated time period of two weeks.
