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Transporters’ union seeks loan moratorium, writes to PM Modi

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NEW DELHI : As elements of India battle the second wave of Covid-19, All India Motor Transport Congress (AIMTC) has reiterated the necessity for a blanket mortgage moratorium until September 30. In a letter to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and Transport Minister Nitin Gadkari, the transporters’ union identified that the truckers haven’t had any respite within the backdrop of the second wave of pandemic: whereas the mounted prices haven’t modified, revenues have dried up.

‘Dealing with hardship’

The AIMTC has additionally requested for extension in validity of all car and driver associated paperwork from June 30, 2021 to September 30, 2021 in order that these in misery should not have to pay the charges or penalties.

“There have been frantic SOS messages from AIMTC’s members who’re dealing with acute hardship and are combating to avoid wasting their autos from being seized by restoration brokers of banks, NBFCs and financiers,” stated AIMTC in its letter.

The second wave of Covid-19 noticed poor financial circumstances and lack of demand leading to about 60 per cent of the transport autos throughout all segments (items or passenger segments) being non-functional.

Operators of such idle fleet are financially crippled and are dealing with excessive distressful circumstances, the Union stated, including that the present state of affairs within the nation has impaired the livelihood of the small operators (each cargo section, the passenger section) at the same time as they’re compelled to pay the statutory charges together with institution prices, fee of salaries, EMIs, upkeep, health, allow charges, taxes, insurance coverage, parking charges regardless of their autos being idle.

Such a state of affairs is now impinging on the sustenance of the individuals related to the transport sector, stated AIMTC including that it has grow to be a wrestle to repay the month-to-month mortgage installments of the banks taken for various functions, defaults in paying the EMIs of the banks. Lockdowns has introduced a monetary pandemic in varied sectors of economic system of which the transport sector each cargo and passenger. The spike in NPAs and the seizure of transport autos (vehicles, buses, maxi-cab, vacationer taxis) has additional dented the sustenance of crores of individuals depending on the transport sector.

Source : The Hindu Business Line

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