Soaring fuel, toll and insurance costs are pushing transporters to the edge, says Motor transport body

The All India Motor Transport Congress AIMTC has warned that Indias small road transport operators SRTOs and selfdriving truck owners are facing an unprecedented financial crisis due to rising operational costs mounting compliance requirements and stagnant freight ratesIn a statement issued on Friday Bal Malkit Singh Advisor and Former President of AIMTC said thousands of small transporters are struggling to stay afloat warning that any largescale shutdown of the sector could severely disrupt Indias supply chainThe small transporter is not asking for subsidies or special treatment We are only seeking a fair viable and sustainable business environment If immediate corrective measures are not taken thousands of small transport operators and selfdriving truck owners will be forced to shut down severely impacting Indias supply chain and economy Singh saidRising costs squeeze transportersAccording to AIMTC operating commercial vehicles has become increasingly expensive over the past few years with diesel accounting for nearly 5560 per cent of operating costs Besides fuel prices transporters are also grappling with rising toll charges tyre prices insurance premiums AdBlue and lubricant costs spare parts vehicle maintenance driver wages loan EMIs statutory compliances and administrative expensesDespite the steady increase in costs freight rates have remained largely unchanged making the business financially unsustainable for many operatorsNo industry can survive when costs continue to rise while revenues remain stagnant The transport industry cannot operate at a loss indefinitely Singh saidCompliance burden under scrutinyThe transport body also expressed concern over what it described as excessive compliance requirements stating that multiple regulations have increased both operational complexity and costs for transportersWhile supporting digital governance AIMTC said compliance systems should reduce paperwork and simplify procedures instead of creating additional financial burdensEchallan system and VLTD mandate criticisedAIMTC alleged that the electronic challan system was being misused claiming transporters had reported arbitrary penalties multiple challans for the same violation and revenuedriven enforcementThe association also opposed the mandatory installation of Vehicle Location Tracking Devices VLTDs in goods vehicles arguing that the requirement originally introduced for passenger safety has imposed additional costs without delivering proportional benefitsIt further claimed that technical glitches in integrating VLTDs with the VAHAN portal have resulted in prolonged vehicle downtime causing financial losses for transportersHighway facilities remain inadequateDespite paying substantial toll charges transporters continue to face inadequate highway infrastructure AIMTC saidThe organisation highlighted the lack of safe parking spaces clean toilets resting facilities hygienic food courts and emergency services for truck drivers on national highwaysAIMTC seeks policy interventionThe transport body has urged the Centre and state governments to rationalise toll charges simplify compliance norms prevent misuse of the echallan system withdraw the mandatory VLTD requirement for goods vehicles resolve VAHANVLTD integration issues improve highway infrastructure and introduce a scientific costbased freight rate mechanism that reflects actual operating costsCalling road transport the backbone of Indias economy Singh said every essential commodity reaches consumers through trucks and warned that the financial collapse of small transporters would have farreaching consequencesThe question today is not whether transporters can survive another increase in costs The real question is how long they can continue carrying the nations economy on their shoulders without receiving a fair return The time for policy intervention is now before it is too late he said