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Monday, February 6, 2023

To resolve Himachal cement plant dispute, Adani Group wants interference of unions to end, removal of 70% of trucks from factories 

The Newz Radar

The cement arm of the Adani Group has placed certain conditions before the Himachal Pradesh government to resolve the dispute over the closure of two factories in Darlaghat (Solan) and Barmana (Bilaspur) in the state.

In a letter issued to the chairman of the committee constituted by the government, the Adani Group has cited the alleged interference of the truck unions in the affairs of the company as the reason for the dispute.

The company, in the letter issued by Ajay Kapoor, the CEO of Adani Group’s cement business, maintained that 550 trucks were required for movement of goods at the Ambuja and ACC cement plants whereas there were 3,311 trucks available. The company proposes to phase out 2,761 trucks in three years. “There should be an immediate ban on adding any new truck in future. As in other states, all decisions regarding transportation will be taken by the company. The company reserves the right to allow interchange of bags between Ambuja and ACC units and other group companies,” it said. The letter mentioned that the entire problem had arisen due to the “complete control of the transport business by the transport unions”.

“The unions not only decide the freight rates and the deployment of trucks, but also decide whose goods are transported where. This is a very dangerous situation. Unions are effectively controlling all transportation-related operational decisions that fall under the jurisdiction of the companies.

“The truck fleet in the state is three times more than the demand. Due to the large number of trucks, the kilometres covered by the trucks in the state are much less than the national average. Unnecessary interference of transport unions has created problems for all other industries in the state and it is the biggest obstacle in attracting new investment in Himachal. Arriving at a long-term solution requires freeing the transport market from control of unions,” the letter said.

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