Adani considers overhauling freight in Himachal

Adani Cement has recommended that operational decisions about transportation be made by the businesses, as is the custom in other states, in a letter to the HP state government.

Adani considers overhauling freight in Himachal
Gautam Adani

The Adani group has proposed a significant reform of the transportation and freight rate for the carriage of products in Himachal Pradesh, which it says is inefficient and has "far-reaching ramifications for all stakeholders" after acquiring ACC and Ambuja Cement. Adani Cement has recommended that operational decisions about transportation be made by the businesses, as is the custom in other states, in a letter to the HP state government.The letter stated that "deployment, route, etc., would be selected by firms based on market principles...capacity and kind of trucks will be decided by companies based on their transportation needs and exchanging of bags between Ambuja/ACC units and other group companies will be permitted." According to the firm, the state's freight rates are "controlled by the unions," who have "artificially kept them at excessively high levels." Three times as many trucks are in the state than are needed.

For a smooth transmission, the recommended km/annum should be increased to 50,000 km/annum over a three-year period, with 40,000 km in the first year and 45,000 km in the second year. This is according to Adani Cement's proposal.The letter stated that as compared to this, the distance travelled in HP is only one-fourth of the national average and the shortest in the nation. In addition, Ambuja and ACC need 550 trucks in HP as opposed to the 3,311 that are now deployed. The business suggests gradually getting rid of the "extra" trucks over the following three years.

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