Transporters across the country are at the receiving end post the ban on old currency notes.
They are facing the brunt of demonetization as they are cash-strapped which has kept their vehicles off roads.
With the government’s curbs on withdrawal of money and exchange of old ₹500 and ₹1,000 notes, the motor transport business is suffering, since 80 percent of the business is cash-based.
The All India Motor Transport Congress (AIMTC) — a representative body for 9.3 million truckers, and more than five million bus operators, tourist taxis and maxi cabs — says 70 percent of the vehicles of their members are already off the roads.
The association warns that if the situation is allowed to persist not only the supplies of essential commodities like milk, fruits, vegetables and medicines will get increasingly affected but it will also cripple the lives of 200 million people directly or indirectly dependent on this industry.
“Under the Finance Act, I’m allowed ₹35,000 per truck per trip in cash for expenses on diesel, octroi, etc.,” Mr Atwal, who is the Chairman of AIMTC, told IANS. “How can I survive when there is an overall withdrawal limit of just ₹50,000?” he queries.
“The government must hike the withdrawal limit or allow cheque-based transactions in our sector.”
Echoing similar sentiments, Bal Malkit Singh, advisor and former President of AIMTC, says: “Our operations are getting badly affected as the withdrawal limit of ₹50,000 that we have been given is very little.”
