An exclusive report from MOTORINDIA
The Chennai Goods Transport Association (CGTA) held its 40th annual celebrations in the city on June 9.
Mr. P.V. Subramani, CGTA President, in his welcome address, said the primary aim of the Association, established in 1972, is to help the transport fraternity with its motto of ‘unity and equality’. It was in 1996 that the Association set up the Charitable Trust mainly to fund its various CSR activities such as mega health camp, education for the driver family, blood donation camp, etc. It also played a major role in moving tsunami victims with trucks operated by its members.
Referring to the controversial toll system, he pointed out that though vehicle movement is totally free in the EU countries, vehicles passing across different States in India are facing several toll-related hassles. Despite development of four and six lanes, toll is regularly collected from vehicle operators, irrespective of their status or type of operation. Next to diesel, the toll tax is the highest item of expenditure for vehicle operators in India.
Mr. Subramani appealed to the Tamil Nadu Government for allotment of land to set up Auto Nagar as in other States in the country.
Delivering the inaugural address, Dr. K. Rosaiah, Tamil Nadu Governor, who was the Chief Guest on the occasion, observed that India is the seventh largest nation in the world in terms of transport operation, with its transport sector enjoying a special status in society. With regard to road transport, India is regarded the third largest, contributing 6.4 per cent to the country’s GDP. With the co-ordinated approach of the Union Government, the road infrastructure is all set to expand to a significant extent.
Today, around 60 per cent of freight movement and 85 per cent of transport of people in India are by road. CGTA should come forward to establish a driver training institute as well as to organise regular meets in order to generate greater transport awareness.
On the occasion, Dr. Rosaiah also released the CGTA Souvenir and presented the Corporate Excellence Award to the CEOs of Ashok Leyland Ltd., Mahindra Navistar Automotives Ltd., Sundaram Finance Ltd., Shriram Automotive Products Ltd., and Indian Oil Corporation Ltd., as well as the Lifetime Achievement Award to the members who have contributed for CGTA growth.
Mr. P.K. Agarwal, Managing Trustee, Chennai Goods Transport Association Charitable Trust, outlined the Association activities in general and the various CSR initiatives taken by it.
Mr. Sanjay Nagpal, Hon. Secretary, CGTA, proposed a vote of thanks.
Earlier, in his keynote address at the CGTA seminar on “Trans Focus”, Mr. Bal Malkit Singh, President, All India Motor Transport Congress (AIM
TC), said that though the road transport sector has transformed itself with the rapid industrial growth, there are certain core problems, solutions for which remain elusive. The overall effort should be to resolve them by CGTA and AIMTC through joint efforts.
He said the contribution of Indian trucking sector which is about 4.5-5 per cent of India’s GDP is enormous. It is indeed the lifeline to the country’s economy and is poised for faster growth with the population of automobiles in India exceeding 110 million and growing at an annual rate of 12 per cent, and the automotive aftermarket business also registering an equally phenomenal growth. In fact, overall commercial vehicle sales grew by 18.20 per cent in 2011-12.
Referring to road infrastructural growth, Mr. Singh observed that the road network covered 33 lakh km, of which National Highways constitute about 1.7 per cent but carry almost 40 per cent of the total road traffic. The current projection is to have six-laning of 7,000 km and a development of 1,000 km of expressways. All this would considerably widen the scope for expansion of the road transport sector.
However, he lamented that in this encouraging scenario, there are several contentious issues that affect this vital sector, such as toll collection, hike in third party premium, withdrawal of anti-dumping duty, etc.
According to him, imposition of anti-dumping duty on import of tyres is yet another example of cartelization by tyre companies which continue increase their prices inspite of a decline in natural rubber prices. Overloading of vehicles is rampant because several States have legalized it by issuing special tokens on payment of fees. This is in clear violation of the Motor Vehicles Act.
Another major concern for the sector is the acute shortage of trained drivers. As a result, at least 15 per cent of the vehicles remain idle. AIMTC has on several occasions expressed its concern over the lack of quality driver training infrastructure in the country, but in vein.
Stressing the need for truck terminals, he said AIMTC has submitted a proposal both to the Central and State Governments for setting up such terminals as there is no parking space available, and the trucks coming from different parts of the country have to park themselves on the highways, leading to traffic obstruction and at times accidents.
Mr. Singh sought continued co-operative efforts as hitherto by both AIMTC and CGTA in representing their grievances to the Government and in seeking immediate solution for these nagging problems facing the road transport sector.
At a group panel discussion held on the occasion, industry experts like Mr. R. Dinesh, Managing Director, TVS Logistics Ltd., Mr. Nalin Mehta, Managing Director, Mahindra Navistar Automotives Ltd., Mr. T.S. Venkatesan, Vice President – Roads & Bridges, L&T Ltd. – Infrastructure Development Projects, Mr. R. Thyagarajan, Chairman, Shriram Group of Companies, Mr. Vinod K. Dasari, Managing Director, Ashok Leyland Ltd., and Mr. Vijay Sankeshwar, Chairman, VRL Logistics Ltd., presented their expert views.