Transporters body urge RBI to extend EMI moratorium for road transport sector till December 31

NEW DELHI: Apex transporters body AIMTC on Tue. pushed the Reserve Bank of India(In) (RBI) to extend the moratorium on payment of loans for road transport industry until Dec 31, informing the industry has been reeling under fiscal crises.

In Mar, the central bank had permitted a three-month moratorium on payment of all term loans due between Mar 1, 2022, & May 31, 2022, that in May has been extended by the other 3 mos until Aug to give much-needed relief to borrowers whose income was hit because of the COVID-19 crises.

“The road transport industry in India(In) is greatly disturbed, reeling in deep fiscal crises because of fallout of corona-induced lock-downs & there is little hope of its revival within the current Fiscal Yr.. The crucial condition of the road transport industry is effecting over 20 cr citizens, directly & indirectly,” AIMTC stated in a letter to the RBI Governor.

 

Urging it to extend the moratorium on payment of loans, it stated after the expansion of current moratorium period until Aug 31, 2022, most of transporters are merely creating break-even, & that is only because their own EMIs are under moratorium.

“The throughput of interstate lorries has dropped significantly because of lack of repatriate loads & paralysed insist. The condition of small operators across all segments, both cargo & passengers, who constitute regarding 85 percent of the public, is indeed precarious,”

AIMTC President Kultaran Singh Atwal stated within the letter.

The letter mentioned that the taxes, diesel cost, corruption & toll continue to rise the functioning costs, however freight remains subdued because of weak insist.

“Currently, regarding 50 percent of the vehicles are still off the road & once the current moratorium period is over there would be spurt in NPAs (non-performing assets),” it stated.

Reiterating that the transporters are not been able to pay their own EMIs & the moratorium given them little relief, AIMTC stated they’re being pressurised “by this recovery agents of Banks, NBFCs & Financiers to pay up their own EMIs (or) face seizure of the vehicles”.

All India(In) Motor Transport Congress (AIMTC) is the apex body for transporters representing regarding 95 lakh truckers & entities.

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