The Hindu : Truckers turn down Govt. appeal

Online edition of India's National Newspaper
Monday, Apr 21, 2003

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Truckers turn down Govt. appeal

By Our Special Correspondent

NEW DELHI April 20. Even as reports of shortages and rising prices of essential commodities grow, the truckers' unions have turned down an appeal by the Government to end their week-long strike while agreeing to consider seven of their 10 demands. This includes non-imposition of value added tax (VAT) on the transport sector.

The All-India Motor Transport Congress (AIMTC) is, however, not prepared to accept the proposal for calling off the strike before holding talks and plans to go on a "silent dharna" tomorrow in the capital. Simultaneously, it denied reports that the truckers' unions in Orissa and Andhra Pradesh had called off the strike.

The AIMTC secretary-general, J.M. Saxena, told The Hindu that the only concession made in Andhra Pradesh was to allow the movement of poultry and eggs within the State following an appeal by the Chief Minister, N. Chandrababu Naidu. In Orissa, only one of the 32 unions had withdrawn from the strike.

Mr. Saxena said that as for the letter from the Surface Transport Ministry, he said the proposal was to call off the strike and then hold talks. This was unacceptable to them. A reply would be sent turning down the proposal. Besides, the Ministry offered concessions in areas over which it had little control such as VAT where the States had to take the decision. "Delhi and Uttar Pradesh have already decided to include the transport sector for the imposition of VAT," he said. The centre said that it would repeal the ban on the plying of 15-year-old vehicles but this meant overruling a Supreme Court order.

The Ministry letter says that since there was "no conflict'' on most of the demands raised by AIMTC, the Surface Transport Minister, B.C. Khanduri, had requested that the strike be called off. "This will enable us to have a more meaningful discussion," the official communication states.

The Government, however, sought to clarify its position in an advertisement published in leading newspapers today outlining the factual position on each of the truckers' 10 demands. Regarding VAT, it clarified that transport was a services sector and VAT did not apply to services. On another crucial issue relating to a reduction in diesel prices, it said that withdrawal of the proposed 50 paise cess on diesel was not possible as it was for the development of roads. "It is a national effort to raise resources for the development of roads in the country," the Ministry said.

As for stability in diesel prices, it said the Petroleum Ministry was willing to consider this as long as variations in the international market did exceed 25 paise a litre.

Meanwhile, consumers continued to suffer as the countrywide strike is leading to rising prices of fruits and vegetables in many States. The strike led by the AIMTC, the largest truckers' union, has so far excluded essential items such as milk and LPG.

Supplies may be affected even further in the capital as tempos and small lorries joined in the strike on Saturday.

Estimates vary about the losses to trade and industry but these are being pegged at thousands of crores while the transport industry is estimated to be suffering losses of up to Rs. 500 crore daily.

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