Meeting between truck operators, Adani cement companies fails to break deadlock

The Adani cement management had closed Ambuja Cements Limited (ACL) at Darlaghat in Solan and ACC plant at Barmana in Bilaspur on December 15 after the transporters failed to accept the lower freight rate of Rs 6 per ton per km (PTPK).

The closure impacted more than 20,000 families in the region as transport operations were halted. More than 2,900 trucks at ACL, Darlaghat, and nearly 3,500 trucks were engaged at ACC, Barmana.

The Adani group on its part offered relocation of 85 employees of Darlaghat and 58 employees from Barmana to sister plants of the group in the northern region. The transport operators maintain that the official rate is Rs 10.58 PTPK at Darlaghat and Rs 11.41 PTPK at Barmana. They stress that the recent rise in diesel prices should also be accounted for in the decision regarding fresh rates.

Himachal Consultancy Organisation (HIMCON) is preparing a report to evaluate the freight rate for the cement transporters of Adani group. The costs are decided on a formula listed by the High Court based on 11 parameters which include taxes, insurance, depreciation value, repair, and wages among others.

The government also formed a sub-committee to initiate talks between various stakeholders, including transport unions and cement organisations. So far, the talks have not yielded any mutual agreement.

The truck operators have stepped up protests. A large demonstration was carried out in Bilaspur on Friday in which the unions demanded increased rates per kilometre. The agitation was carried out on the Manali-Chandigarh highway.
“In the meeting that took place, there has been no agreement. We are trying to find a common ground.

The way we are moving forward is on the basis of the formula laid down by the High Court and Shukla report. The HIMCON report will be a fair way to decide rates and we are hoping that it will bring us closer to resolution,” said Industries Minister Harshwardhan Chauhan.

“It is a matter of great concern that the livelihood of the truck operators has been disrupted. A sub-committee has been formed to have detailed discussions. We will inform the outcome of the meeting to the CM and decide accordingly,” the minister added.

Adani Cement has claimed that the freight rates are decided by the truck unions and have been kept ‘artificially’ at a high rate.

The group has proposed 50,000 km as the base optimum distance to decide the freight rates. They have stated that there is a requirement of 550 trucks across both plants and the excess trucks will be phased out.
Operational decisions by the company will be taken on the basis of principles applied in other states, the group said. Deployment, route and capacity will be decided by companies as per market principles, said the group in a statement.

“We have been very clear with our demand regarding the rate. The group has offered us nearly half of the same and they even shut down the plants without any notice. In the meeting, the group submitted their proposal to the government. We have to deliberate on the same. We cannot afford to be exploited and the conflict can only end if due rates are given,” said Jai Dev Kaundal, head, Truck Operator Union, Solan.

Chief Minister Sukhvinder Singh Sukhu is closely monitoring the situation as several in the government anticipiate large-scale protests if the talks remain inconclusive.