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Monday, February 6, 2023

Himachal cement plant dispute: Know the 4 conditions put by Adani Group that will completely demolish truck unions 

The Newz Radar

In the solution proposed to the Himachal Pradesh government to resolve the more-than-a-month-old dispute over the closure of the company’s two cement plants at Darlaghat (Solan) and Barmana (Bilaspur), the Adani Group has listed four main conditions. The suggested terms are likely to end the monopoly of the truck unions and slowly give complete control of the operations to the company.

The four conditions (mentioned bellow) are part of a letter penned by Ajay Kapur, CEO, Cement Business Adani Cement (ACC & Ambuja Cements), to the Chairman of the Permanent Standing Committee of the Himachal Pradesh government, which was constituted to resolve the dispute.

The company has proposed the following four measures for time-bound resolution of the dispute:

1. Considering all the factors, the optimum km per annum would be 50,000 for calculation of the freight. However, in order to make the transition smooth and equitable we propose to achieve this in a timeframe of three years as indicated below:

a. Year 1,40,000 km

b. Year 2,45,000 km

c. Year 3,50,000 km

2. As mentioned in our earlier letter dated January 12, 2023, both Ambuja and ACC’s requirement is 550 trucks as against the current deployment of 3,311. Hence, it is proposed to phase out the excess trucks in the timeframe of next three years.

3. Immediate moratorium on adding any new trucks.

4. All operational decisions regarding transportation to be decided by the companies as is the practice in other states.

a. Deployment, route, etc., to be decided by companies based on market principles.

b. Capacity and type of trucks to be decided by companies as per their transportation needs.

c. Swapping of bags between Ambuja/ ACC units and other group companies to be permitted.

Notwithstanding the temporary closure, we have a strong commitment to the growth and prosperity of the state of Himachal Pradesh. Over the past four decades, we have made huge investments in the state and have contributed significantly to its development and welfare. Adani Cement and its two companies – ACC & Ambuja Cements have been working for the upliftment of the entire community, be it in education, livelihood generation, empowerment of women, health, water and infrastructure development.

The truck operators, meanwhile, have called the four conditions as an alleged attempt by the Adani Group to take complete control of the functioning of the unions and “slowly phase out all private trucks from the two cement plants”.

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