Adani Cement CEO looks to solve transport impasse

The chief executive of Adani Cement has written to Himachal Pradesh authorities, proposing a solution to the impasse between the company and transport unions that has led to the closure of two cement plants for over a month now.

The company has proposed that over the coming three years, no new trucks be deployed with it and the existing fleet be reduced to 550 trucks as required instead of the 3,311 vehicles at present. This will increase the running of a truck on average to 50,000 kilometres over this period from the estimated 25,000 kilometres at present, reducing the fixed cost per kilometre.

Adani Cement has also sought autonomy over deciding routes and cargo capacity, which, it claims, are presently being dictated by trucking unions.

The Adani Group shut the plant of ACC Cement at Barmana and another plant of Ambuja Cement at Darlaghat in the state last month, following a dispute with truck unions over freight charges.

"We were forced to close our operations after the transport unions adopted an unworkable position on the freight rate and distribution model," Ajay Kapur, CEO of Adani Cement, said in the letter addressed to RD Nazeem, the principal secretary for transport in Himachal Pradesh and the chairman of the concerned permanent standing committee.

ET has reviewed a copy of the letter.

The unions charged a tariff of around '11 per tonne of cement per kilometre, but the Adani group is seeking to cut this to half at '6, as per media reports.

Adani Cement declined to comment on ET's queries.