Union of Carriers seeks a moratorium on loans, deferred payment

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As part of India grapples with a second wave of COVID-19, the All India Automobile Congress (AIMTC), in a letter to Prime Minister Narendra Modi, Minister of Finance Nirmala Sitharaman and Transport, confirmed the need for a moratorium on total credit until 30 September. Minister Nitin Gadkari.

The carrier union indicated that truck drivers had no respite from low demand amid the second wave of Covid, as they did not face a drop in fixed costs at one end and a lack of revenue at the other. AIMTC has also requested an extension of the validity period for all vehicle and driver related documents from June 30, 2021 to September 30, 2021, so that those in distress do not have to pay duties or fines.

The AIMTC letter said there were desperate SOS messages from AIMTC members across the country that faced major hardships and dangers to save their vehicles from being seized by fundraising agents from banks, non-bank financial corporations and financiers.

The second wave of Covid-19 resulted in poor economic conditions and a lack of demand, leaving about 60 vehicles in all segments (freight or passenger) dysfunctional.

The Union said that operators of such an idle fleet are facing financial difficulties and extremely difficult conditions, adding that the current scenario in the country has undermined the livelihoods of small operators (both the cargo segment and the passenger segment), even if they have to pay. statutory fees, including establishment costs, payroll, EMI, maintenance, suitability, permit fees, taxes, insurance, parking fees, even though their vehicles are idle.

This situation is currently affecting the existence of people associated with the transport sector, said AIMTC, adding that there was a problem with the payment of the monthly installments of the banks on the loan taken for various purposes, defaulting on the obligations to repay the EMI of the banks. … The blockage has led to a financial pandemic in various sectors of the economy, of which the transport sector, both freight and passenger. The surge in NPA numbers and the hijacking of vehicles (trucks, buses, maxi cabs, tourist taxis) further undermined the lives of millions of people dependent on the transport sector.

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