INDUSTRY

AIMTC urges government to provide blanket loan moratorium for transport sector till August-end 2021

The All India Motor Transport Congress (AIMTC), the apex body of transporters, on Wednesday said that it had requested the government for a blanket loan moratorium for the sector till August 31, 2021 in the prevailing situation to help in maintaining business continuity. 


In a statement, the AIMTC pointed out that around 70 per cent of the country was under lockdown and more than 85 per cent of the transporters were small operators having one to five vehicles (both cargo and passenger segments). “We have requested the government for blanket loan moratorium in the prevailing scenario (sic) to help in maintaining business continuity and tackling stressed sectors, like the transport sector, and help in survival of crores of these hapless Indian citizens associated with the road transport sector,” it said. 


It further added that the road transport sector was committed to maintaining the supply chain of oxygen, medicines and other essential commodities despite burgeoning adversities on all fronts. “About 60 per cent of the transport sector is idle and is financially crippled. The current scenario (sic) in the country has impaired the livelihood of the small operators... even as they are forced to pay the statutory fees, establishment costs, payment of salaries, EMIs, maintenance, fitness, permit fees, taxes, insurance, parking fees even though the vehicles keep standing,” it said. 


AIMTC said that the spike in non-performing assets (NPAs) and seizure of transport vehicles (trucks, buses, maxi-cab and tourist taxis) would result in disruption of supply chain of essential commodities, medicines and other projects as well as people’s mobility. AIMTC is the apex body of transporters, representing more than 95 lakh truckers and about 50 lakh bus and taxi operators across the country. 

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