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Four lakh trucks stranded on highways post note ban: AIMTC

Demanding immediate increasing of withdrawal limits, Wadhwa warned that essential supplies like milk, vegetables, fruits and medicines would be impacted.

By: PTI | New Delhi | Published: November 14, 2016 9:47 pm

Stating that around four lakh trucks are stranded in various parts of the country, the apex transporters body AIMTC today demanded immediate increasing of cash withdrawal limit from ATMs and banks to avoid crisis. All India Motor Transport Congress (AIMTC), claiming to have 93 lakh truckers, 50 lakh buses and tourist taxi and cab operators under its fold, said at least eight lakh drivers and conductors were severely impacted in the wake of de-legalizing of Rs 500 and Rs 1,000 currency notes.

“Our about 4 lakh trucks are stranded across India with about 8 lakh drivers and conductors severely hit. The sudden ban on higher denomination notes have made them stand in long queques before banks in different parts. The withdrawal limit is minuscule with ATMs at many places not working and paralysing the transport business,” AIMTC president Bhim Wadhwa told PTI.

Demanding immediate increasing of withdrawal limits, Wadhwa warned that essential supplies like milk, vegetables, fruits and medicines would be impacted. The drivers and tourists who are en route do not have ample cash in hand and are starving on the highways with no help coming from any quarter, he said.

“The road transport fraternity of India is facing its worst crisis with the banning of higher denomination notes,” he said, adding, this despite transport being the highest taxpayer to the exchequer. AIMTC said that in the last fiscal, contribution of the Road transport to GDP was 4.8 per cent, which amounted to Rs 5,44,800 crore annually or Rs 1,492 crore per day.

“Eighty per cent of the transport operations cost is cash based. This implies Rs 1,194 crore is required on a daily basis by the transport sector for its operations. As per the finance Act section – 6D(d) of IT Act, Rs 35,000 per truck per trip cash is allowed for en route expenses. A small operator having 10 trucks would require up to Rs 3,50,000 cash per day to tide over his requirement, which is unsustainable under the present cap,” it said.

With acute liquidity and financial crunch, the transportation services are poised to come to a standstill, Wadhwa said. He also said export-imports of the country was likely to be hit due to disruption in movement of vehicles to and from the ports. Besides, transporting raw materials to the industries and finished goods to the distribution centres would also get affected.

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  1. Gyandeep Mittal
    Nov 17, 2016 at 11:08 am
    Note Banlt;br/gt;lt;br/gt;lt;br/gt;To overcome with black money and increase of supply of cash, government should take short term and long term stepslt;br/gt;lt;br/gt;Short term steps : Government should allow private retailers who are having card swiping machine to exchange money in return of card swipe. Government can decide the time and amount say 2000.93 and retailers will return 2000 to customer. Department should not consider this value as s. Considering 30 lacs card swipe machines in India and average 20 persons change the cash of 2000 will give 12,000 Crore in a day (30 lacs * 20*2000) which is equal to ATM limits for one day ( 1 Lacs * 2.5 Lacs per filling * 5 filling per day = 12,000 Cr)lt;br/gt;lt;br/gt;lt;br/gt;Long Term Steps : Government should introduce cash payment machines which will be similar to card swiping machine but will deposit in the account. There can be limit of 10,000 and every time receiver has to swipe the card and enter the PIN. After same he will receive the money in the account. It will increase cashless transaction in India.