BIRGUNJ, May 27, 2012
Country´s transportation sector that has absorbed billions of rupee in investments, a major chunk of which has come from banks and financial institutions, is in tatters as banda forced them to remain out of service for almost a month.
Vehicles, both passenger and goods carriers operating from Birgunj have remained largely confined to garages. And a large number of others that operated services during general strikes have been vandalized or damaged.
Though the government has provided special security escorts to tankers ferrying petroleum products and Indian goods carriers transporting imported goods, some 490 buses that operate from Birgunj has remained completely paralyzed, said transport entrepreneurs.
Likewise, nearly half of 800 trucks and goods carriers that operate from this largest import point have remained stranded in their respective garages.
Birgunj has remained shut for 18 of last 19 days. And during the banda organized by various parties more than 30 vehicles have been vandalized and set ablaze,” said Raj Kumar Gupta, Birgunj office chief of Narayani Transport Entrepreneurs Association (NTEA).
“Today transportation industry is perhaps the meekest victim of the political instability and lack of statesmanship,” he told Republica. “Entrepreneurs that were operating with huge bank finances are having a nightmare, and drivers and helpers that work on trip-basis too have been affected,” he added.
Of the total vehicles operating under NTEA´s banner, 150 vehicles were operating from Birgunj. Of that, 98 percent of vehicles have been financed by Banks and Financial Institutions (BFIs). “Their incomes have dropped to nil, whereas many of the operators have already started getting calls for the banks for payment of principal and interest,” stated Gupta.
Likewise, Pramod Raut Kurmi, president of Narayani Transporters Association (NTA) said of the 265 buses affiliated with it, 255 buses have been financed by BFIs.
“As each vehicles cost between Rs 3.5 million to Rs 6 million, our members have loans of around Rs 1 billion to repay. Unfortunately, back-to-back banda for almost three weeks have completely put them off the roads, making the promoters anxious,” Raut stated.
Entrepreneurs said they need to service interest at the rate of 18 percent per annum for the loans they have taken.
Kurmi, whose four buses were operating on routes like Kakarbhitta, Baglung, Dang-Tulsipur and Surkhet, are presently lying idle in the garage. “I owe Omni Finance around Rs 7 million in loans,” said Kurmi. Apart from interest, he also needs to pay Rs 300 each day to his 12 member staff.
Similar is the plight of goods carrier companies based in Birgunj.
Usman Hawari who operates cargo transportation service with 10 trucks said he has loans of Rs 16 million to settle. “For that, I need to pay Rs 60,000, including interest amount worth Rs 26,000 to the finance company every month,” he said.
Unfortunately, all his trucks locked in garage have not fetched him even a single rupees for the past 21 days.
Present political stalemate has also started making bankers wary.
Basu Timilsina, chief executive of Omni Finance that has financed 2,200 vehicles in Birgunj said his company has stopped receiving installments.“The borrowers have started defaulting their payment schedules. Leave aside the principal amount, they are informing us that they are not in a position to pay interest,” he stated.
The closure of the transportation services have affected general public and industries alike. “Industries have stopped receiving raw materials and are also not able to dispatch their products to the market,” said Ashok Vaidya, vice president of Birgunj Chamber of Commerce and Industry.
While number of tourists entering Nepal via Raxaul, India, has dropped to zero, vegetables and fruits trade too have sharply plummeted.
Source: Republica
Country´s transportation sector that has absorbed billions of rupee in investments, a major chunk of which has come from banks and financial institutions, is in tatters as banda forced them to remain out of service for almost a month.
Vehicles, both passenger and goods carriers operating from Birgunj have remained largely confined to garages. And a large number of others that operated services during general strikes have been vandalized or damaged.
Though the government has provided special security escorts to tankers ferrying petroleum products and Indian goods carriers transporting imported goods, some 490 buses that operate from Birgunj has remained completely paralyzed, said transport entrepreneurs.
Likewise, nearly half of 800 trucks and goods carriers that operate from this largest import point have remained stranded in their respective garages.
Birgunj has remained shut for 18 of last 19 days. And during the banda organized by various parties more than 30 vehicles have been vandalized and set ablaze,” said Raj Kumar Gupta, Birgunj office chief of Narayani Transport Entrepreneurs Association (NTEA).
“Today transportation industry is perhaps the meekest victim of the political instability and lack of statesmanship,” he told Republica. “Entrepreneurs that were operating with huge bank finances are having a nightmare, and drivers and helpers that work on trip-basis too have been affected,” he added.
Of the total vehicles operating under NTEA´s banner, 150 vehicles were operating from Birgunj. Of that, 98 percent of vehicles have been financed by Banks and Financial Institutions (BFIs). “Their incomes have dropped to nil, whereas many of the operators have already started getting calls for the banks for payment of principal and interest,” stated Gupta.
Likewise, Pramod Raut Kurmi, president of Narayani Transporters Association (NTA) said of the 265 buses affiliated with it, 255 buses have been financed by BFIs.
“As each vehicles cost between Rs 3.5 million to Rs 6 million, our members have loans of around Rs 1 billion to repay. Unfortunately, back-to-back banda for almost three weeks have completely put them off the roads, making the promoters anxious,” Raut stated.
Entrepreneurs said they need to service interest at the rate of 18 percent per annum for the loans they have taken.
Kurmi, whose four buses were operating on routes like Kakarbhitta, Baglung, Dang-Tulsipur and Surkhet, are presently lying idle in the garage. “I owe Omni Finance around Rs 7 million in loans,” said Kurmi. Apart from interest, he also needs to pay Rs 300 each day to his 12 member staff.
Similar is the plight of goods carrier companies based in Birgunj.
Usman Hawari who operates cargo transportation service with 10 trucks said he has loans of Rs 16 million to settle. “For that, I need to pay Rs 60,000, including interest amount worth Rs 26,000 to the finance company every month,” he said.
Unfortunately, all his trucks locked in garage have not fetched him even a single rupees for the past 21 days.
Present political stalemate has also started making bankers wary.
Basu Timilsina, chief executive of Omni Finance that has financed 2,200 vehicles in Birgunj said his company has stopped receiving installments.“The borrowers have started defaulting their payment schedules. Leave aside the principal amount, they are informing us that they are not in a position to pay interest,” he stated.
The closure of the transportation services have affected general public and industries alike. “Industries have stopped receiving raw materials and are also not able to dispatch their products to the market,” said Ashok Vaidya, vice president of Birgunj Chamber of Commerce and Industry.
While number of tourists entering Nepal via Raxaul, India, has dropped to zero, vegetables and fruits trade too have sharply plummeted.
Source: Republica
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