Government speaks on issues related to Transport Strike

The following issues were raised at the Press Briefing addressed here by the Secretary (Road Transport & Highways), Brahm Dutt late last evening.

1) What is the stand of the Government on the demand relating to diesel prices?

As per the information available with this Department, the Ministry of Petroleum and Natural Gas (MoPNG) has expressed its reservation to lower the diesel prices by Rs.10/-. However, they are constantly monitoring the international oil prices and would consider reducing the diesel prices at an appropriate time.

2) Can you clarify the position relating to the Notifications issued by the Ministry on 5.12.2008 regarding toll rates?

As per the agreement reached with AIMTC in July 2008, the Government was not supposed to increase the toll rates in respect of public-funded National Highways controlled and managed by NHAI for a period of one year. The Government has not violated this commitment.

The Government has issued National Highway’s Fee (Determination of Rates and Collection) Rules, 2008 on 5.12.2008 for collection of fee for use of sections of National Highways, permanent bridges, by-passes and tunnels. These Rules only specify the policy for collection of toll on stretches of National Highways which would be completed henceforth and the toll would be imposed for the first time. Thus, the intent of this notification does not in any way relate to the earlier agreement with AIMTC in July 2008. That Agreement was purely related to all completed stretches of National Highways where toll was already levied and subsequently the toll was increased after 5 years.

3) Whether the Government is negotiating with the All India Motor Transport Congress (AIMTC) to break the impasse?

Though there has been no formal discussion with the AIMTC, informal channels are being maintained. AIMTC is adamant on their demands without understanding the ground realities which could pave the way for any formal negotiations.

4) What action the Government has taken on the Service Tax matters as it is a major issue for the strike?

As per the agreement with AIMTC in July 2008, the Department of Revenue had earlier issued necessary notifications / clarifications. However, one issue relating to exempting the subcontractors under Goods Transport Agency (GTA) from the purview of Service Tax could not be implemented due to non-availability of certain information. However, the Government has already issued a Notification in this regard two days ago exempting the subcontractors from the purview of Service Tax. This has resolved the outstanding issue relating to Service Tax and there is no point in raising this demand and insisting on it by the transporters. As regards, the apprehension of the AIMTC relating to the status of the legal notices issued by Service Tax Department, it is apparent that the Department of Revenue would certainly come out with clarifications, if required.

5) What the Government proposes to do to ensure uninterrupted movement of essential commodities?

The Government has worked out a 17-point action plan to deal with any eventuality arising out of the truckers strike. The major action point being declaring transport services as an Essential Service, revoking the permit of truckers under Section 86 (e) of Motor Vehicles Act 1988, involving the local traders / businessmen etc. to ensure smooth flow of essential commodities. Preventive measures under various laws can also be invoked by the State Governments / UTs to ward-off any untoward incidents during the strike. Chief Secretaries of the States/UTs have been advised in this regard to take appropriate steps deemed necessary. The State Governments have also been advised to allow the use of transport vehicles for carrying essential commodities without the requirement of any permit under Section 66 (3) (n) of Motor Vehicles Act 1988.

6) How many States have invoked ESMA so far?

As per the information available with this Department, till today, only four States/UTs, namely, Delhi, Gujarat, Rajasthan and Uttar Pradesh have invoked ESMA.

7) What is the overall impact on the supply of essential commodities?

There is almost no impact on the supply of essential commodities reported by the States/UTs. However, only two States, viz., Andhra Pradesh, Haryana, Punjab, have reported marginal impact on supply of essential commodities. Haryana has issued Prevention of Hoarding and Maintenance of Quality Order, 1977 to ensure supply of essential commodities.

8) What is your assessment about the impact of strike in the country?

There has been some impact on the inter-State operations of vehicles in Andhra Pradesh, Daman and Diu, Gujarat, Goa, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Uttar Pradesh. Local operation of vehicles has not witnessed any significant impact. However, there is no response in Bihar, Chattisgarh, Jharkhand, Orissa, North-Eastern States and West Bengal.