New Delhi: The country's transport business is in the grip of an economic downturn these days. The steep reduction in the booking of goods has made it difficult for transporters to instil instalments of loans. In view of the seriousness of the situation, transport organisations have sought help from the government. According to the Indian Foundation of Transport Research and Training (IFTRT), an expert body that monitors the country's transport sector, the economic sluggishness is leading to a sharp decline in the booking of transporters.
12.66 lakh new jobs created in May: ESIC data
In the absence of adequate freight orders, 30-40% of the transporters' trucks are parked empty. Due to a reduction in income, the transporters are finding it difficult to repay the instalments of loans taken for the purpose of truck purchases. Transporters are pleading with the banks to give them some time to pay the instalment.
The Indore Truck Operators Association, an organisation of truck operators in Indore, has written to banks and financial institutions seeking relief. In a letter to Tata Finance, Mahindra Finance, Sundaram Finance, Sriram Finance, Cholamandalam Finance, besides HDFC, Axis, ICICI, Kotak Mahindra and Yes Bank, a two-three-month discount in instalment payments has been sought.
ICICI Bank reports a net profit of Rs 1,908 crore for June quarter
"Truck operators and transport traders have been struggling in business for the past six-seven months, but there is no improvement, In the next two-three months also, there is no hope of it. With the increase in diesel rates, the monthly running of trucks has come down drastically. As such, even the regular instalment operators will not be able to pay further instalments." wrote C.L. Mukali, president of the association.
Government to privatize 20-25 more airports