Here is how Adani-trucker standoff was resolved in Himachal Pradesh

Gujarat Ambuja Exports

Himachal Pradesh truckers, who had a stand-off with Adani Cement, agreed to a lower freight rate after the company assured them of additional volumes from neighbouring states.

Adani Cement stopped operations at its two units in the hill state following an impasse with truckers, with the company demanding a 40 percent cut in freight rates. Truckers earlier said the cut would be unviable in the hilly regions.

After the state government's intervention, truckers agreed to a 12 percent cut but only after Adani Cement sweetened the deal.

“The understanding is the rate cut will be compensated with volumes (of Adani Cement units) from neighbouring states like Punjab and Haryana,” said Naresh Gupta, President of the All Himachal Truck Operators Federation.

Rakesh Thakur, President of the Bilaspur District Transport Cooperative Society (BTDS) confirmed the truckers will get to operate volumes generated in neighbouring states.

An email query sent to Adani Cement remained unanswered at the time of writing this story.

Adani Cement said on February 20 that it would resume operations at the two plants the next day.

Adani Group's cement units—ACC Limited plant in Barmana in Bilaspur district and the Ambuja Cement plant in Darlaghat in Solan district—had shut operations on December 15 after the company demanded that the truck operators lower freight rates.

The company had earlier said that the plants were under severe pressure and costs had to be reduced to sustain in the market.

The union representatives added the truce was arrived at through state government intervention and discussions between the union representatives and those of the company.

As per the new agreement, single axle trucks of 12 tonnes would operate at Rs 10.30 per tonne per km at both units. This is lower than the Rs 11.41 charged at the Barmana unit and the Rs 10.58 charged at the Darlaghat unit in the state.

The new rates are significantly higher than Adani Cement’s demand of roughly Rs 6 per tonne per km. “The new agreed rate is in line with the earlier decided formulas which also accounts for diesel prices,” Gupta said, who also represents the union of truck drivers from Darlaghat, Himachal Pradesh.

UltraTech Cement to gain

UltraTech Cement operates two units at Baga and Bagheri in Himachal Pradesh. “We will offer the new rates to UltraTech, which currently pays Rs 10.70,” Gupta said, whose group of truck operators also caters to UltraTech’s Baga unit. An email query to UltraTech Cement remained unanswered.

Disruption in supply at ACC-Ambuja for the last two months had resulted in temporary higher demand for UltraTech Cement’s products in the region.