Diesel is priced at nearly Rs 93 per litre, sharply increasing fuel, maintenance and operational expenses. However, the transport rate has remained largely unchanged. (File Photo)
Tamil Nadu

Freight rates dont align with diesel price hike: Fly ash transporters at Salem's MTPS seek fare revision

The continuous evacuation of ash is critical for the uninterrupted operation of the power plant.

Sneha Sivashanmugam

SALEM: With a staggering 116% rise in diesel prices since 2012, fly ash transporters attached to the Mettur Thermal Power Station (MTPS) say they can no longer operate at freight rates fixed more than a decade ago and have demanded an immediate revision in transport charges.

The freight rate for fly ash transport was fixed at Rs 450 per tonne during a tripartite meeting in 2012, involving officials of the Mettur Thermal Power Station, transporters' associations and cement factories when diesel cost about Rs 43 per litre. Today, diesel is priced at nearly Rs 93 per litre, sharply increasing fuel, maintenance and operational expenses. However, the transport rate has remained largely unchanged.

MTPS-I and MTPS-II generates electricity by burning coal, a process that produces large quantities of ash as a by-product. The ash generated is of two types — dry fly ash and wet ash — and both are transported daily to cement factories, where they are used as key raw materials in cement manufacturing.

Transport of dry fly ash is carried out using covered bulkers and sealed lorries to prevent dust pollution, while wet ash is transported in suitable vehicles. The continuous evacuation of ash is critical for the uninterrupted operation of the power plant.

Around 1,000 lorries are dedicated exclusively to fly ash transport at Mettur, according to transporters. Of these, nearly 400 to 500 vehicles operate every day, carrying between 25 and 50 tonnes of ash per trip. The fly ash is supplied regularly to six major cement factories in Tamil Nadu, including Ramco Cement at Pennadam, Dalmia Cement in Trichy, Chettinad Cement at Puliyur, and other plants located in Ariyalur, Karur and Sangagiri in Salem district.

Murugan Venkatachalam, president of the Integrated Ash Transport Works Federation, said the cost burden on transporters had become unsustainable. "Diesel prices have more than doubled since the 2012 agreement, but the freight rate remains the same even after nearly 14 years. There are about 1,000 lorries dependent solely on ash transport in Mettur. We are seeking a fresh tripartite meeting and demanding that the rate be revised to around Rs 650 per tonne," he said.

Echoing the concern, T Santhosh Kumar, a transporter who owns around 25 lorries exclusively engaged in fly ash transportation, said the demand for a revision in freight charges had been pending for several years. He said transporters had repeatedly approached cement factories seeking a hike, but were consistently told that the companies were running at a loss and unable to increase the rate then.

"Each time we raised the issue, we were assured that the rent would be revised in the future when the situation improved, but that promise never materialised," he said. He added that transporters once again pressed strongly for a revision in 2019, but the outbreak of the Covid-19 pandemic and the subsequent disruption of operations prevented them from pursuing the issue further.

Mettur Division Revenue Divisional Officer (RDO) P Sukumar said steps were being taken to address the matter. "The transport association has submitted a petition seeking a revision in freight charges and has also mentioned the possibility of a strike. We are arranging a meeting involving transporters and cement factory representatives. Only after discussions are held can a decision on the revised rate be taken," he said.

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