Deadlock between truckers, Adani Cement company ends; CM Sukhu announces freight rates

Shimla (Himachal Pradesh) [India], February 20 (ANI): The deadlock between truckers and Adani Cement Company ended on Monday with the intervention of Chief Minister Sukhvinder Singh Sukhu who announced the freight rates after meeting transporters and company officials.
The freight rate of Rs 9.30 per kilometre per ton for multi-axle and Rs 10.30 per kilometre per ton for single axle has been fixed.
The deadlock has been broken after over two months and the company has agreed to resume operations at both plants in the state. The Ambuja Cement plant and ACC cement plants were shut on December 15, 2022, citing the losses due to the increasing transport cost.
In a meeting held here today, chaired by the Chief Minister, both sides have agreed on the freight rates. The principal Media Advisor to the Chief Minister Naresh Chauhan said that the Chief Minister has announced the rates and the dispute has been resolved.
"Both the cement management companies and the Truck operators have settled upon the new rates which were announced by the Chief Minister today at Rs 9.30 for multi-axle and Rs 10.30 per single axle. The factory management has given its consent to resume cement production from tomorrow and truck operators have also agreed to transport at these rates," said Naresh Chauhan
He said that this dispute came to the fore only four days after the state government assumed power and the cement factory management announced to stop the production.
"The Truck operators had gone on strike on December 16th 2022. The state government continued holding talks with truck operators and factory management afterwards. After the change of ownership of the cement factories located at Darlaghat and Barmana, the freight dispute was resolved now. The Chief Minister was concerned about the issue from day one and dozens of meetings were held and finally, the cement plants will be resumed. The state government had shifted the supply from day one to the other cement company Ultra tech in the state and supply was smooth. Both the truckers and cement plants suffered a huge loss on this also the state government had a big loss in terms of taxes due to the shutting down of the cement plants for over 65 days," said Chauhan.
The leader of the transporters union Balak Ram Sharma assessed a loss of over Rs 100 Crore during the closure of the cement plants.
"We had a loss of over Rs 100 Crore during the past 68 days after the cement plants were shut, people who are directly or indirectly involved in the business. Today the Chief Minister has announced the freight rate of Rs 9.30 per kilometre per quintal for multi-axle and Rs 10.30 per kilometre per quintal for single axle. The company authorities have agreed to this, however, the rates in comparison to the other cement plants in the state including Ultra tech are less by 13 paise and we have requested the Chief Minister to compensate the company as the state had also increased VAT recently on diesel and petrol. The Chief Minister has assured us to compensate for that loss. There are other modalities including the supply ratio and other issues of the truckers, we have come here to discuss it with the Ambuja Cement here," said Balak Ram Sharma.
Another transporter said that these truckers, however, are not satisfied with the rates announced and agreed but they say that they had a huge loss and to avoid further loss they have agreed to this freight and would discuss it with the other members.
"We are expecting the operations will resume by tomorrow, however, the freight we have agreed is not satisfactory for us but we have agreed to this to avoid further loss as a large number of people are involved in it. We would discuss issues with the company management and would take it to our Union as we know most of the truckers are not agreeing to this low freight. We will see further outcomes as of now we have agreed to the freight announced by the Chief Minister," said Ram Krishan Sharma, another transporter.
The Adani Cement authority is also happy that the dispute has been resolved amicably, as per an official release.
"We are happy to inform you that all the stakeholders have come together and amicably resolved the ongoing discussions on the freight rates in the state of Himachal Pradesh. This outcome is positive for ACC and Ambuja Cements and all the stakeholders involved. In line with our commitments, we are pleased to share that ACC and Ambuja Cements will resume operations effective tomorrow at the Gagal and Darlaghat plants in Himachal Pradesh. The new freight rates from tomorrow for single axle trucks of 12 tons would be Rs. 10.30 Per Ton Per Km for Ambuja Cements' Darlaghat plant and ACC's Gagal plant as compared to earlier rates of Rs 11.41 for ACC's Gagal and Rs 10.58 for Ambuja Cements' Darlaghat units. The new rates for multi-axle 24-ton Trucks would be Rs 9.30 Per Ton Per Km for both units. This will result in an overall reduction of 10-12 per cent in the freight rates benefiting the customers of Himachal Pradesh," read the statement from Adani.
"The Gagal and Darlaghat units of ACC and Ambuja Cements are one of the largest industrial units in the state and play a vital role in providing employment and contributing to the economic viability of the state. The reopening of plants will help in the economic, social and overall development of the State. We are grateful to the Hon'ble Chief Minister of Himachal Pradesh, the members of the Sub-Committee, Government Ministries of Himachal Pradesh and the Transport Unions for taking this initiative in the overall interest of all stakeholders and the State of Himachal Pradesh. The freight rates are as per the guidance provided by the relevant government authorities." reads the statement from Adani. (ANI)