With the road transport sector hit by the economic slowdown and spiraling input costs, the All India Motor Transport Congress has called for an indefinite nation-wide strike from January 5. The government should introduce a bailout package for the sector addressing issues like high costs of diesel, tyres, and permits, are some of their demands.

?As a part of the package, the tenure of the loans for trucks and carriers should be increased as in the current scenario, the owners cannot pay back the loans. The carriers are standing still and there is no demand,? said Chandrajit Singh Lohara, president, All India Motor Transport Congress.

The sector has seen a substantial decline in freight rates. The charges for 15 tonne load between Punjab and Calcutta at Rs 55,000 crore in November has plummeted to Rs 30,000 crore in December. Also, 25% carriages are lying standstill due to lack of demand.

Pressing for the need for a package, he said, ?The road transport sector is the largest employer for the illiterate people. Almost 70% of the entire transport is by roads. Any development in the road transport sector directly affects the common man. Also, the tax regime is very stringent for the sector as we are liable to toll tax and service tax, which other carriers like railways do not pay.?

?The government has come out with bail out packages for almost every sector like realty, infrastructure, airlines and exports. But the road transport sector has been ignored,? he added.

Pitching for making the diesel prices commensurate to the levels of the crude oil prices, Lohara said, with the crude oil prices coming down at $34 a barrel, the government should slash diesel prices to what they were at this level of crude prices.

?At present, the cost of aviation turbine fuel is lower compared with the diesel prices. Moreover, the government is planning to grant declared goods status to ATF. Why can?t a similar initiative be taken for diesel, which is primarily used by agriculture and transport sector,? he added.

The government assured that the diesel prices will come down once crude prices come at $61 a barrel level. However, the crude oil price has come down at $34 at present. Now, the government is saying that the deficit of the oil marketing companies needs to be taken into consideration before effecting a cut in the diesel prices. The deficit for the oil marketing firms is basically due to kerosene and LPG. So why should the diesel users bear it.

Speaking on the other issues that need immediate attention, he said the rubber prices have come down by almost 60%, but none of the tyre manufacturers have cut prices, affecting the business.

The body has also called for changes in the Motor Vehicles Act. ?The act is very old. New vehicle models have been introduced since then. So there is a need to amend the Act accordingly,? said Lohara.