Federation of Automobile Dealers Associations Home Truck Freightage Defies Trends in Economy: IFTRT Report Defying the buoyant

data being released by various agencies about the expansion of economic activities and soaring corporate profits, the trucking business, consisting of 3 million trucks, has failed to look up in last 4 weeks. The truck freightage has remained flat on most of the trunk routes despite increase in cost of operation due to 2 diesel price hikes (Dec 31 and Dec 15' 03) totaling Rs.2/- per litre (10%) and have, in fact, sharply declined on trunk routes passing through Uttar Pradesh due to resumption of overloading by trucks. On the other hand various State Governments had withdrawn Gold token/ passes/ cards, which permitted over-loading of trucks in excess of permitted weight, in order to get release of their share of Central Road Fund withheld since April 2003. The Central Government has stopped Central Road Fund to those State Governments, which were not only permitting but sponsoring overloading of trucks in contravention of Central Motor Vehicle Act, 1988 by issuing Gold Cards/ passes/ tokens to truckers against fixed monthly/ quarterly fee. The Central Government has taken a firm view that "over-loading of the vehicles cause significant damage to road surface..." Recently, the State Government of Uttar Pradesh withdrew the Gold Card scheme w.e.f. Dec. 15, 03 and a month later Rajasthan did the same w.e.f. 1, Jan 04. The subsequent stringent enforcement of CMV Act, 1988 by U.P. Transport Department by not permitting the entry/passing through of overloaded trucks from the State resulted in sharp increase in truck freightage by 4% - 7.5% during the fortnight (Dec 1, - Dec 15, 03) and unsettled the trucking business in region. However, this antioverloading drive was short-lived and has collapsed in the U.P. State, by and large. Now, overloaded trucks are plying and passing through the State merrily. Thus, truck freightage once again is being dictated by the over-loading of vehicles that existed before Dec. 1, 03. In the last four weeks the truck freightage for the trunk routes passing through U.P. has dropped by 3.5% - 6.8%, according to the monthly update released by Indian Foundation of Transport Training & Research (IFTRT). Union Government outsmarted by Rajasthan Followed by U.P., the Rajasthan Government, too, had withdrawn its Gold card/token scheme from 1, Jan 04 to get the Central Road Fund released immediately. However, the State Government, very smartly has replaced the earlier special Gold Token Scheme with another "AMNESTY SCHEME" by charging multi slab fee to permit unhindered over-loading of trucks in excess of prescribed weight limit. The 1st Jan.'04 notification has been "modified" to pacify the Central Government, which had again refused to release the money from Central Road Fund. But, plying of over loaded commercial vehicles continues under the patronage of State Transport Department, points out the report.

TRUCK (16.2 TON GVW) Hire charges/rates (Rs. per round trip 21 Dec'03 - 21 Jan'04 Period Route / Round Trip 9 ton pay load Hire Charges 21 Dec'03 28,800/28,400/34,700/69,400/43,100/59,000/44,800/33,300/29,300/18,300/30,300/Hire Charges 21 Jan'04 28,800/28,400/33,000/67,000/43,100/59,000/45,000/31,300/29,300/18,300/30,300/Truck Hire charges change/Round Trip/Period 21 Dec'03 - 21 Jan'04 Rs. No Change No Change (-) 1,700/(-) 2,400/No Change No Change (+) 200/(-) 2,000/No Change No Change No Change % NC NC (-) 5.0 (-) 3.5 NC NC (+) 0.5 (-) 6.8 NC NC NC Diesel Price increase Impact (per round trip) 31 Dec'03 Rs. (+) 620/(+) 610/(+) 630/(+) 850/(+) 770/(+) 870/(+) 770/(+) 620/(+) 630/(+) 340/(+) 620/% (+) 5 (+) 5 (+) 5 (+) 5 (+) 5 (+) 5 (+) 5 (+) 5 (+) 5 (+) 5 (+) 5

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