The Hindu : Karnataka News : Mining crisis brings lives of lorry owners to a halt

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Wednesday, Nov 05, 2008
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Karnataka

Karnataka

Mining crisis brings lives of lorry owners to a halt

Firoz Rozindar

Tragedy strikes family as owner ends life unable to pay loan

Selvakumar is survived by wife and three children
He had borrowed money from a financial institution

GRIEF: Selvakumar’s mother Anniyamma, his wife and children at their house in Chitradurga.

Chitradurga: Life will never be the same again for Kuppamma who lost her husband a week ago. The incident has not only left a trail of tragedy for her but also three small children to look after.

Selvakumar, a lorry owner, consumed poison as he could not repay loan borrowed from a financial institution to purchase the lorry.

The grief-stricken family is now mourning the unexpected death of their breadwinner who died at the age of 30. The private financial institution is learnt to have taken away the lorry as it did not receive the monthly instalment.

Selvakumar is one among several lorry owners who have become victims of the mining crisis which has brought the lives of lorry owners to a grinding halt.

About some six months ago, the mining industry was witnessing a boom. There were enormous financial returns for mine owners and a bumper revenue for lorry owners. Many, mainly from the middle and the below middle class category, could not resist the financial attraction and bought lorries either by selling their valuables or by borrowing loans from financial institutions.

However, now the dreams of numerous lorry owners lie shattered owing to the virtual shutdown of the mining industry, which is believed to be a fallout of China stopping orders.

According to the Lorry Owners’ Association, there are nearly 10,000 lorries involved in mining activities in the State. There are nearly 2,500 lorries owned by 800 people in Chitradurga district.

“These owners are in distress as they have no business to do. The condition of drivers, who are struggling to find new work, worst”, said District Lorry Owners’ Association president Eshwarswamy.

He said that most of owners bought lorries through loans, and they repaid it after making profit on each consignment.

He said that as a new lorry cost nearly Rs. 13 lakh, excluding profit, the owner has to earn at Rs. 60,000 a month to repay loan and maintain the vehicle. Earlier, the lorry owners were earning around Rs. 7,000 a trip, and with about 10 trips a month transporting ore to Mangalore and Karwar ports, they could manage it.

“Several people, mainly with poor financial back-up, are struggling to repay loan as they are not receiving any fresh consignments to transport. They are not in a position to sell the vehicles as it (resale) will not fetch any profit. Moreover, no one is ready to buy lorries even at such a low price,” he said.

Mr. Eshwarswamy said that the owners are facing a dual blow. On the one hand they have no consignments to transport and on the other, the banks are sending notices seeking repayment of loan.

According to him, lorries provided for the livelihood of cleaners and mechanics besides the owners and drivers.

“Now, it is one lorry owner who has committed suicide. If the situation does not improve, more such cases would follow,” he feared.

The association has urged the Government to help the owners and appealed to the banks to give more time to lorry owners to repay loans.

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