TRANSTOPICS

India’s only transport weekly commanding largest circulation

27 VOLUME LVII, NO 26, THURSDAY, DECEMBER 31, 2020. PRICE Rs 25 27

Editorial: Wish List for 2021 - Standing Together As ONE Tops The List

SIMTA - SLOF Calls Off Tamil Nadu Strike After Negotiations With Authorities

VECV Undertakes Massive Digitization Initiatives Across Levels

Tata Motors Introduces the Ultra T.7

AITWA-NICDC Organise Covid Awareness Programme For Truck Drivers

Wishing Everyone
A Very Happy New Year
 Transtopics December 31, 2020 03

Editorial: Standing Together As ONE Tops The List 06

SIMTA - SLOF Calls Off Tamil Nadu Strike After Negotiations

With Authorities

VE Commercial Vehicles Undertakes Massive Digitization

Initiatives Across Levels
11

13
C
FASTag to take heavy toll on motorists without Aadhaar

Over Rs 100 lakh cr worth infrastructure projects

underway by 2024-25: Gadkari
16

17
O
National Rail Plan 2030 Proposes Three New
Dedicated Freight Corridors

Tata Motors Introduces the Ultra T.7

18

19
N
T
JAI Bags Best Use of BTL Activities 22

AITWA-NICDC Organise Covid Awareness Programme

For Truck Drivers 23

MoRTH extends validity of Vehicular documents

E
till 31st March 2021 24

World Bank, Modi government sign USD 500-million pact 26

Delhivery raises $25 million from Steadview Capital 27

N
Govt Releases Stamp & Special Cover To Commemorate
Birth Centenary Of Late Shri P D Agarwal 28

Parliamentary Standing Committee for Industry

recommends Franchise Protection Act for Auto Dealers 30

My Long Journey With Tata Motors

Biswanath Bhattacharjee, Part 63

The future of Trucking industry in India

Peer Mohamed A
31

34
T
Daimler to launch India's first electric truck 36
S
 Transtopics December 31, 2020 04

National Highway Status For Greenfield Lucknow-Kanpur E'Way 37

The Indian supply chain must effectively bridge

its competitiveness gap of USD 180 billion:
CII-Arthur D. Little report 39
C
GPS based toll collection system cleared 40

COVID-19 Vaccination: The Challenges & Factors

that will help transform the Indian Logistic
and cold supply chain: Aditya Vazirani 41
O
N
Unite to break the corruption chain
Meet Morjaria 44

DICV Ties Up With Various Banks / NBFCs To Provide

Financing Options to Customers 47

Indian Auto Component Industry clocks turnover of

Rs. 1.19 lakh crore 48
T
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 Transtopics December 31, 2020 06

Editorial
Wish List for 2021
Standing Together As ONE
Tops The List
 Transtopics December 31, 2020 07

Who would have ever thought that we would be

part of a generation that would witness a
Pandemic! And naturally these disasters don't
come with a handbook of how to deal with such
situations, especially emotionally and
nancially. The only lesson that came along with
the Pandemic was precautions to prevent getting
infected. But how do you handle situations that
arise due to the Pandemic.

Like many other countries, India too was lost in

the woods – not knowing what to do to deal with
the situation. The government tried everything
from lockdown to burning candles to beating
plates to enforcing strict measures to maintain
social distancing and wearing masks. However
the tally just kept rising – and so did the worries
for the government, and also the country on the
whole. There would be no count of the losses that
people have gone through at various levels. So
while we see whole of Bollywood heading to the themselves to serve their customers better and
Maldives to take a break from the Pandemic, we provide more efciency. Though they would
have scores of people who are struggling to make denitely like to get paid better for their services,
their ends meet. There would be no count of how but intense competition within the industry
many people lost their jobs in the last few months doesn't make that possible. At the same time, the
and how many others would have taken a hefty government is not making life easy for the
pay cut. transport industry. The government for some
However people are looking at 2021 with a lot of reason thinks that it is their birthright to extract as
hope, especially with talks of the vaccine being much money as it wants from the transport
just around the corner. May be the government industry. For this reason they keep increasing
would announce the vaccine as a New Year gift to taxes, especially on fuel. At the same, the diesel
the people of India. However it would not be an pricing policy of daily revision is not something
easy task administering the vaccine to the entire that the industry is able to comprehend. In very
population of the country, keeping in mind the simple terms, how can they quote freight for a
sheer physical size of the country and the density consignment that has to be shipped after 3 days,
of population. The government claims to have a and also something that would take a week to
denite plan in hand to make sure that every deliver? How can the transporter predict the fuel
Indian gets the vaccine – sooner or later. price change? This is something that the
government needs to take into account and make
The road transport industry as well as policies accordingly.
automobile industry too has been through a lot in
these last few months and even they would be The other problem has been that the government
hoping for a breather from the challenging implements / changes policies without
situation. However that is easier said than done – consulting the transport industry. For example
considering the various challenges that these no one can understand the need to change the
segments face. The road transport industry, validity period of e-way bill from 100 km to 200
despite being such an important segment for the km per day. The transport industry is the most
country, has been vehemently ignored by all affected segment as a result of this change, and
governments and departments. But yet the yet the government did not think it advisable to
transporters make sure that they keep upgrading consult the transporters even once. Similarly the
 Transtopics December 31, 2020 08

government has been talking of a scrapping business worthy. This would also mean that the
policy. However the government still hasn't transport industry would have to come together
consulted the transport industry, especially the as ONE – and this wish tops our list for 2021.
truckers on the issue. Suddenly the government Rather I would say this would be my only wish
will come up with an announcement and it will for the road transport industry. While we are part
be mayhem after that. Why not call the stake of the same industry, we are all headed in
holders and discuss the issues with them. While different directions – operationally, politically as
this takes care of issues, it also ensures good well as policy wise. I don't understand why
relations between the government and the stake various associations cannot sit across the table
holders. and come up with 5 demands that would change
the face of the industry. Forget contentious issues
The transport industry is hoping that 2021 will be
– but there are various other issues that the entire
better than 2020 – in terms of volumes as well as
industry can agree upon unanimously. A couple
operations. The good thing is that volumes are
of them would be taxation on fuel, detention
getting back to pre-covid levels. However the 2
charges, credit period for customers, etc. Why are
big challenges that they would be facing is
we not addressing these issues collectively as an
shortage of drivers and the fast pace at which the
industry?
dedicated freight corridor (DFC) is being
implemented. Both these factors would hamper We once again reiterate that road transport is a
the growth of the road transport industry and very important industry for the country – not just
there is very little the transporters can do to economically but also otherwise. How does the
counter these challenges. The government has government expect distribution of essential
been siding railways and while the railways commodities, including food, across the
ministry is ensuring that the DFC attracts country? Also, how does the government expect
customers, surprisingly the road transport industries to function when there would be no
ministry is also working towards the same goal – movement of raw material as well as nished
increasing share of railways. goods? The road transport has to start thinking
seriously, as well as collectively.
For many years now we have been countering the
government on various issues – right form diesel While the transport industry continues to be
prices to taxation and other issues. However under stress, the effect of the same is also being
seldom have we sat down with the government felt by the commercial vehicle manufacturers
to discuss a plan that would make road transport and other suppliers to the transport industry. The
more efcient and competitive. SIAM holds an countrywide lockdown also marked the
annual convention every year and invites the transition of the country from BS IV emission
government and other stake holders to discuss norms to BS VI norms. While it was the fastest
issues and challenges. They also keep releasing transition anywhere in the world from Euro IV to
their plans for the next 5-10 years and work Euro VI, it was also a costly affair. The trucks
towards that. Unfortunately the road transport would now be more expensive and so would be
industry doesn't think on similar lines. The road the maintenance. Also with the extent of
transport industry never discusses policies – electronics going up signicantly, it would be
rather they discuss issues and always seem to challenging to get any fault repaired at road side
confront the government. workshops. The truck would have to be taken to
authorised workshops. While the number of
If the road transport industry wants to see a
bright future for itself, it would have to change its Truck sales have been increasing gradually in the
stance and it would have to discuss policies with last couple of months, but returning to complete
the government on a regular basis. This will take normalcy would still take some time. The
time, as we cannot also expect the government to automobile industry has been waiting for the
change its mindset overnight – but this is the best scrapping policy and is hoping that the same
chance we have to make the road transport would provide a llip to the sales of new trucks.
 Transtopics December 31, 2020 09

However that too seems uncertain, with the

government not making any denitive Thanking All Our Readers
announcement or timeline for implementing the
For their Contunuous Support
scrapping policy.
& Words of Encouragement,
Just like the transport industry, the automobile
Something Like The One Below:
industry too is a victim of the government's
policy of heavy taxation. It is strange that
automobiles are taxed at 28%. We can Your contribu on to this trade is
understand if luxury cars are taxed at that rate really admiring. The weekly
(though even that is not fair), but taxing smaller representa on of the industry
cars and trucks at 28% is ridiculous. The
indicates your commitment to this
automobile and transport industry has made
representations to the government to cut GST on
trade. I have no words to recognise
automobiles, but the government seems least your contribu on to this trade.
inclined to let go its taxes. We hope that in 2021
the government takes corrective action and
I appreciate your possessiveness to
reduces GST on automobiles. the road transport segment. Most
appreciable is your ming – week
There is no doubt that 2020 was a tough year for
everyone, and every industry. But we are all a er week, without any breaks.
looking at 2021 with a renewed hope that things
Transtopics deserves the
will fall in place and we will be able to get back to
normalcy – personally as well as professionally. compliments for its presenta on,
choice of subjects and segments
Transtopics wishes all its readers and advertisers
covered. The design and quality is
a Very Happy New Year. We pray for the safety
and prosperity of everyone and at the same time equivalent to interna onal
thank everyone for continuing reading standards. The unbelievable & most
Transtopics and supporting. We thank everyone wonderful part is the price. It's
for their words of encouragement and advice, simply a wonderful gi from
which helped us to tide through the rough
Transtopics' Team to the en re road
period. We hope that 2021 will be better for all of
us.
transport & automobile industry.

Wishing Everyone
A Very Happy New Year
 Transtopics December 31, 2020 11

SIMTA - SLOF
Calls Off Tamil Nadu Strike
After Negotiations With Authorities
The Tamil Nadu strike announced by SIMTA, which was commence on December 27 was
called off after members of SIMTA had a fruitful meeting with the authorities. In a
statement, SIMTA said that the authorities immediately agreed upon 6 out of the 9
demands. The following is the statement by SIMTA and also minutes of the meeting.

We are happy to inform you all that today we had government which will be discussed with the
a meeting with Transport commissioner, respective department and will be intimated to
Additional transport commissioner, joint us and temporary registration period extension
transport commissioner and deputy transport demand needs to be approved by central
commissioner at Chennai to discuss about 9 government of india and it is consideration by
demands we have placed before them. In the 9 them which will also be intimated to us when it is
demands they have accepted to implement 6 approved by them. As the government has
demands immediately like Reecting stickers, agreed majority of our demands we are
GPS device, over dimension loads, any place FC cancelling the strike that is to happen on 27th
and speed limiting device. Details of those December 2020. Kindly inform to all the
demands are attached below. Other 3 demands members and transporters regarding the same.
like removal of border RTO and diesel price Thank you so much everyone for your kind co-
reduction is the policy decision of the operation.

Minutes of the Meeting

Participants from SIMTA & SLOF-TN: · Joint Transport Commissioner (Rules)

· M R Kumaraswamy (President -SLOF) · Deputy Transport Commissioner-1

· P Vangilee (Secretary – SLOF) The committee shall meet every quarter to

discuss all relevant issues.
· C Dhanaraj (Treasurer – SLOF)
Speed Limiting Devices:
· P Sundarraj (Advisor – SIMTA)
· Speed limiting devices shall be implemented
Minutes: as per CMVR 118.
A coordination committee has been formed · List of vehicles with maximum rated speed
consisting of the above members of SIMTA & below 80 kmph shall be communicated to all
SLOF-TN, and the following members of RTOs / MVIs for the purpose of exemption from
Transport Department: tting speed limited devices.
· Additional Transport Commissioner · Circular containing updated list of vehicle
models installed with OEMs Speed Limiting
· Joint Transport Commissioner (Admin)
Function (SLF) shall be issued to all RTOs /
 Transtopics December 31, 2020 12

MVIs. For such vehicles no other certicate enforced.

regarding SLD / SLF will be required for renewal
Any Place FC in the State:
of Fitness Certicate.
· A committee consisting of members from
· There is no restriction for integrating the Test
Transport Department and representatives of
Agency approved SLD manufacturers in the
SIMTA & SLOF-TN shall be constituted to study
VAHAN portal. This will continue.
the feasibility of implementing in the State.
· For the SLDs already tted, the procedure for
Removal of Border RTOs:
integration with VAHAN portal shall be
nalised after discussion with NIC. Calibration · The impact of implementation in other
certicate is not required for renewal of Fitness states shall be studied and reported to the
Certicate. Government of Tamil Nadu. Policy decision has
to be taken by the Government of Tamil Nadu.
Reective Tapes:
Temporary Registration Time Extension:
· Interim orders of the Hon'ble High Court
of Madras have been implemented. Procedure · Final notication of Government of India
for implementing the nal orders of the court will is awaited. This can be considered after receipt of
be decided later in consultation with all the same.
stakeholders.
Diesel Price:
GPS / VLTD:
· The request shall be forwarded to the
· Interim orders of the Hon'ble High Court Government of Tamil Nadu along with
of Madras have been implemented. Procedure recommendation of the Transport Department.
for implementing the nal orders of the court will Policy decision has to be taken by the
be decided later in consultation with all Government of Tamil Nadu.
stakeholders.
Police Harassment:
Over Dimension Vehicles:
· This will be brought to the notice of the
· Regulations related to the offences of Additional Chief Secretary, Home Department
over dimension / over loading shall be strictly and Director General of Police.
 Transtopics December 31, 2020 13

VE Commercial Vehicles
Undertakes Massive Digitization Initiatives
Across Levels
In its continued vision towards driving serialized part inventory and software versions,
modernization in the commercial vehicle (CV) with a complete picture of the product allowing
industry, VECV has positioned itself as a rst service function to analyse the product's status
mover in digitalising critical functions to and performance for scheduling preventive and
transform into a customer-centric organization. predictive maintenance.
The company has made signicant investments With 100% tracking and traceability of all
in its digitization initiatives, which were further assembly operations, the company witnessed a
accelerated during the pandemicto offer signicant reduction in time required to identify
pioneering value-driven solutions, for all the root cause issues. Predictive maintenance of
stakeholders. Starting from sales andaftermarket assets has also signicantly helped in reduction
value service offerings,tillcontinuously driving of downtime and improvement in asset
operational and supply chain excellence, VECV efciency. Additionally, real time visibility of
has digitised multiple functions throughout the inventory and resources have helped reduce
value chain.The digitalizationhas led to overall operational costs, thus helping deliver
signicantreduction in the overall cost of quality products at low cost.
ownership for consumers by providing better
and market-ready products and differentiated Products and solutions with advanced
experience by consistently ensuring superior tech
uptime to our customers.
In July 2020, VECV took a giant step towards
Digital Manufacturing and Product modernizing the CV industry by offering 100%
Development connected BSVI products in the country.With
BSVI, the electronic content on trucks has gone
VECV embarked on its digital transformation
journey in the manufacturing
domain with the extensive usage of
advanced technologies like AI and
ML enabled IoT frameworks. The
state-of-the-art manufacturing
execution system was designed to
enable faster decision making on
shop oors, providing meaningful
insights to improve overall line
efciency, productivity and quality.
In designing, for example, VECV
supports technologies like multi-
mechanical CAD, 3D printing and
rapid prototyping. The entire
digitized product life cycle is
inclusive of product build history,
 Transtopics December 31, 2020 14

up. The company decided on connecting 100% Digitalized partner interaction

range of their trucks and buses to help the
With a robust frontline enterprise platform
customers manage their vehicles and transport
(UDAAN) in place and supported by an
operations more effectively, by leveraging the
integrated digital ecosystem, Eicher has been
data generated in the truck combined with
able to drive the retail organization capability
connected services capabilities.Eicher's
transformation. For workshop responsiveness,
advanced telematics system is fully integrated
various digitalization tools powered by
into the vehicle electronics and is engineered as a
analytical framework and leveraging mobility
part of it. With Eicher Connected Services, the
solutions in a simplied and intuitive manner
focus is on solving problems. It is going beyond
were rolled out at dealerships to drive the
presenting the information through an
performance enablers. Processes high on manual
interactive portal and apps,likethe traditional
interventions were digitalized in an innovative
telematics solutions currently available in the
manner which led to overall productivity
market that focus on providing insights which
improvement. These features made it easy for
drive actions that drive protability. For
dealers to adhere to the processes and create end
instance, Eicher not only detects over-speeding
to end transparency of workshop performance.
or excessive idling, but also unravels how it
affects their fuel efciency. For transport Achieving a threshold performance has become a
operations, most customers use digital solutions criterion for dealer-wise Uptime certication, for
of third party players across their multi-brand the company's agship 24x7 uptime facilities
eet. There are both start-ups and digital players offering.
disrupting logistics with innovative solutions.
Various elements of training had been identied
With Eicher's 'Collaboration platform', our
for ensuring requisite technician competency at
customers can avail services of these players by
dealerships for BSVI readiness. Overall
using the data from Eicher telematics system.
competency framework was revamped and the
Eicher has also partnered some leading solution
focus was developing competencies on
providers who are already integrated on its
mechanical, product, electrical and especially
platform.
around diagnostics skillsets. Additionally, role
The company's aspiration is to become the based structured learning program was rolled
Uptime Company of India by consistently out for 4500+ dealer technicians and BSVI
ensuring superior uptime to customers and all diagnostic training was conducted for 220+ front
the functions (frontend and backend) havebeen end VECV team. This was enabled through new
aligned towards delivery of this objective and methods of learning like byte size, tech contest
addressing customers concerns
proactively.The uptime support
capability was created as a
control tower and real time
support center. The objective
was to move from reactive
management to active
management so that Eicher
responds within committed
repair SLAs. Six unique services
enabling high uptime to
customers were identied and a
co-located team from various
functions are working closely to
support uptime.
 Transtopics December 31, 2020 15

and self-eLearning content supported by guided deploying best in class digital HR solutions for
learning management platform. empowering employees and providing a unique
digital experience in their operations. While
Digital customer and aftermarket digital collaboration has been one of the areas
initiatives VECV was working prior to the current situation,
Traditionally the transport business was driven the tools deployed have helped in continuation
by physical connect with customers and this was of business operations without any hindrances.
a hindrance for effective customer engagement Employees have been able to continue working
with the onset of lockdowns. While the from home or remote locations seamlessly by
customers wanted to avoid physical meeting to using the collaboration tools that were deployed
maintain social distancing, the VECV and as part of the organizational strategy and
channel team too were bound by frequent roadmap.
lockdowns restriction and personal safety Being an employee-centric organization, the
concerns. Online meets and webinars were company's focus on employee learning and
conducted to ensure critical aftermarket development remained unhindered, with a
assistance with minimal customer impact.The delivery of more than 10500 man-hours of online
workshops started operating with a lean team training through internal and external trainers
and taking all safety precautionary measures. A covering over 3000 employees. Overall employee
remote call centre team was setup to monitor performance related processes were completed
vehicle breakdowns & seamlessly coordinate for in time with a closure rate of 95-100%, which was
breakdown assistance between the Uptime a testimony of the effective productivity and
centre& dealerships. This was enabled through engagement level of employees.It also
real-time call allocations based on geolocation showcased that the engagement levels in the
services and assignment of service request to the organization did not dip during the current
nearest breakdown vehicle. pandemic.
For contactless aftermarket operations, various Eicher has been known for offering world class
initiatives were kicked-off across workshop technology, be it through its 100% connected
repair process, channel communication, vehicle range with advanced telematics or
documentation and trainings. VECV enabled industry rst 24x7 uptime facilities. The
digital payments solution for customers to application of technologies beyond product
overcome the dependency on physical connect offerings further reiterates Eicher's forward look
for service payments. As an alternate service approach to staying relevant in the digital world.
channel, WhatsApp for business is enabled for
self-serviceability for all
aftermarket solutions and
seeking prompt breakdown
support.Eicher introduced a
new way of customer connect
through virtual platforms for
digitally engaging with
customers for meets and
product launches. This became
even more effective as it helped
the company to maximize the
customer reach seamlessly.

Digital HR
VECV has always been keen on
embracing technology for
 Transtopics December 31, 2020 16

FASTag to take heavy toll

on motorists without Aadhaar
With the Centre making FASTag, an electronic government scheme. The High Courts and
toll collection system, mandatory for all four- Supreme Court should exercise their powers
wheelers running on National Highways (NH) when the judicial orders are disobeyed
toll plazas from January 1, motorists who are yet blatantly.” Aimed at reducing cash handling at
to get Aadhaar, which is a prerequisite for getting the toll gate, the e-payment system was
the FASTag, are expected to be penalised heavily. introduced in tollgates maintained by National
Although the Supreme Court ordered that Highway Authority of India (NHAI) since
Aadhaar should be made compulsory only for December 15 last year. The NHAI said non-
availing benets from the government, union FASTag vehicles would be charged double the
government has made it mandatory for user fee.
purchasing the FASTag ID.
Following a stiff resistance from a section of truck
Activists rued that motorists who did not have owners, NHAI converted 25 per cent of the lands
Aadhaar or not willing to share their Aadhaar into hybrid lanes, enabling user fee payment
will be put through hardship for using national through cash, and FASTag in 13 out of 48
highways. To this effect, the Ministry of Road tollgates in the State. In May, the hybrid lanes in
Transport and Highways issued a notication in 13 tollgates were made FASTag lanes. However,
November, amending the Central Motor one lane on the extreme left in each toll was
Vehicles Rules, 1989. To get FASTag, motorists allowed for making cash. Chennai-based
had to submit a copy of Aadhaar, vehicle consumer activist T Sadagopan wondered why
registration certication, bank account, and one’s private credentials are required for using
mobile number. toll roads. “The personal data captured in
Aadhaar are sensitive in nature. Senior citizens
Representatives of FASTag suppliers said, “For are vulnerable as their data could be misused.
lling the electronic KYC (Know Your Customer) People have the right to say ‘no’ to sharing their
form in ‘myfastag’ application, Aadhaar is personal details. There is no transparency and
mandatory. Without getting validated through NHAI is following unfair trade practices in
Aadhaar, the FASTag account will not get linked selling FASTags.
with bank account, which will allow the user to
recharge the amount.”Retired IAS ofcer MG The Ministry’s notication said transports will
Devasagayam, who was one of the petitioners of not be able to renew tness certicates without
the case in Supreme Court against linking installing FASTags. The notication also stated
Aadhaar with bank accounts said making it that, to acquire third-party insurance for a
compulsory was illegal, unconstitutional, and vehicle, FASTag will become a requirement from
amounted to contempt of April 1, 2021.
court.

“The apex court clearly said

Aadhaar should always be
optional unless the person
was a beneciary of the
 Transtopics December 31, 2020 17

Over Rs 100 lakh cr worth

infrastructure projects underway
by 2024-25: Gadkari
Government has launched the National per cent to 40 per cent of the GDP,” the minister
infrastructure Pipeline (NIP) under which it has further added.
planned to invest Rs 111 lakh crores on infra
Underscoring the importance of aligning with
projects by 2024-25, keeping Prime Minister
Global Value Chains (GVCs), Gadkari added that
Narendra Modi's vision of making India a $5
as 80 per cent of global trade happens through the
trillion economy in the next ve years, Union
GVCs, and most enterprises involved in GVCs
road transport and highways minister Nitin
are medium enterprises, the government has
Gadkari said last week. Gadkari was speaking at
taken several steps in this direction, including the
a special session on the CII Partnership Summit
adoption of technologies such as Articial
2020, organised by the Confederation of Indian
Intelligence and machine learning to strengthen
Industry (CII) in collaboration with the
the sector and also boost global exports.
Department of Promotion of Industry and
Internal Trade (DPIIT). Gadkari also noted that reforms such as
reduction of corporate tax rates, 100 per cent tax
Stating that the Centre is continually working
exemption to investors, and implementation of
towards upgrading infrastructure, Gadkari said,
GST have positioned India as a competitive
“The National infrastructure Pipeline (NIP) is a
market in the world, particularly in terms of ease
rst of its kind exercise to provide world-class
of paying taxes.
infrastructure across the country and improve
the quality of life for all citizens”. The minister added that the government is
committed to providing a favourable
Gadkari announced the government is targeting
environment and a transparent policy
to invest Rs 25 lakh crore in the road sector. He
framework for investors and that he is condent
added two major major highway projects –
that India will become a major global investment
Amritsar-Ajmer and Delhi-Amritsar-Katra -
destination.
worth Rs 65,000 crores were also being planned.

Gadkari also stated that while the pandemic has

adversely affected the MSME sector, the
Government has undertaken the right policy
interventions, including the change in MSME
denition, the Credit Guarantee Scheme, Credit
Linked Capital Subsidy Scheme and the MSME
cluster development programme to make the
sector self-reliant.

“With the global realignment taking place, the

MSMEs would play a great role in redening
their contribution to the Indian economy. The
Government has plans to expand the
contribution of the MSMEs from the current 30
 Transtopics December 31, 2020 18

National Rail Plan 2030

Proposes Three New
Dedicated Freight Corridors
To de-congest the high-density rail networks side. The proposed route length is 2327.6 km
over Indian Railways (IR), the draft National Rail having 21 junction stations and 43 crossing
Plan (NRP) has recommended the construction stations. It will be built in two phases- Itarsi-
of three additional dedicated freight corridors Nagpur- Vijayawada- Chennai (1206 km) and
(DFC) in a phased manner. Palwal – Itarsi (751 km).

This is over and above the two DFCs, works for East Coast DFC
which are in progress – EDFC between Ludhiana
It starts from Hijli near Kharagpur and ends at
and Dankuni and WDFC between Dadri and
Vijayawada railway station and the North-South
JNPT.
DFC. The proposed route length is 1114.7 km
The three DFCs recommended are:- with 15 junction stations and 16 crossing stations.
It will be constructed in a single phase. The East-
1. East-West DFC between Palghat and Andal West DFC will intersect other DFC s as follows:-
2. North South DFC between Pirthala (near · Western DFC at Palghar near Mumbai
Palwal) and Arakkonam (near Chennai) and
the · North-South DFC at Sindi near Nagpur

3. E a s t C o a s t D F C b e t w e e n H i j l i ( n e a r · Eastern DFC at Andal and Kamarkundu near

Kharagpur) and Vijayawada Dankuni

East -West DFC · East Coast DFC at Hijli

It starts from Palghar (on Western DFC, near Similarly the North-South DFC will have the
Vangaon station on IR), and has two destination following intersections-
points – one ends at Andal on the EDFC and the
· Western DFC at Palwal
other at Kamarkundu a new station on the EDFC
near Dankuni. The distance covered by this DFC · Eastern DFC at Tundla
is 2328 km.A total of 37 junction stations (31 on
Palghar – Andal Line and 6 on Rajkharswan – · East Coast DFC at Vijayawada
Kamarkundu Line) and 29 crossing stations have
been proposed on this corridor. It will be built in
two phases- Nagpur -Dankuni (1077 km) and
Palghar –Nagpur (936 km).

North -South DFC

It starts from Pirthala near Palwal and ends at

Arakkonam near Chennai on Chennai-
Bengaluru line.One connection has been
proposed at Thiruvalangadu on the Chennai side
and the other at Melapakkam on the Bengaluru
 Transtopics December 31, 2020 19

Tata Motors
Introduces the Ultra T.7
India's rst truck designed
specically for urban transportation

The most advanced truck,

with the best-in-industry
operating economics
 Transtopics December 31, 2020 20

Key highlights:

l All new sleek Ultra Cabin for easy manoeuvrability through narrow
streets and ght corners
l Offers best-in-class driving experience, NVH levels and fuel efficiency
l Highest payload capacity in7-tonne GVW category
l Available with a modular pla orm, with various deck lengths and4-tyre
& 6-tyre op ons

Tata Motors, India's largest commercial vehicle three unique and distinct cabin options to its
manufacturer, introducestheUltra T.7 – the most I&LCV customers – Ultra, SFC and LPT range of
advancedLight Commercial Vehicle (LCV), trucks.
designed specically for urban transportation,
Commenting on the occasion, Mr. V Seethapathi,
with itsall-new sleek Ultra cabin. The highly-
Vice President, ILCV Product Line, Tata Motors
appreciated Ultra cabin has been engineered for a
said, “With the introduction of the latest Ultra
sleeker version to offer the best-in-class comfort
T.7, Tata Motors furthers its commitment to scale
and agility with its optimum dimensions of
newheights of innovative automotive
1900mm wide cabin to reduce the turnaround
manufacturingto provide a variety of products
time. The reduced turnaround time
for diverse applications at minimum operation
ensureshigherearning potential for the truck
costs. The Ultra T.7,with its pioneering and
owners and brings more efciencies in the
award winning design,possesses the ability to
logistics sector for protability.The Ultra T.7
bring the best of both worlds – comfort and
range comes with a modular platform with
agility – while aiming to offer the highest
variants of various deck lengths and in 4-tyre and
protability for its owners.With the industry best
6-tyre combinations to suit a wide range of
operating economics,superior fuel efciency and
applications.
power, longer tyre life,itmakes the best product
The Ultra T.7 is powered by the technologically- in the category.”
advanced 4SPCR engine, with superior 100hpof
Equipped with a crash-tested cabin and powerful
power and 300Nm of torque from 1,200 to
air-brakesfor enhanced safety, adjustable seating
2,200rpm.It has underpinnings of a strong
positions, tilt-and-telescopic power steering and
modular chassis design for better durability and
a dash-mounted gear shifter for comfort, the
radial tubeless tyres, offering increased fuel
Ultra T.7 combines futuristic styling with
economy.In addition, the Tata Ultra T.7 is
comfort, providing signicantly lower NVH
designed keeping in mind Tata Motors' 'Power of
levels and a fatigue-less driving experience. It
6' philosophy, which promises superior eet
comes with standard tment of a music system,
protability, vehicle performance, driving
USB fast charging port,ample storage space and
comfort, convenience and connectivity, along
Tata Motors' next-gen connected vehicle solution
with safety – all with a lower total cost of
that enables eet management, the Fleet Edge. It
operations (TCO).This has been validated with
features clear-lens headlamps and LED tail-
extensive real-world and pilot testing,across
lamps that signicantlyimprove visibility at
various challenging terrains and conditions. Tata
night.
Motors is the only Indian commercial vehicle
manufacturer offering the power of choice of
 Transtopics December 31, 2020 21

The Ultra T.7 is the ideal vehicle for applications terms, nationwide service support and higher
such as transportation of e-commerce products, resale value,thus making a much better value
FMCG, industrial produce, consumer durables, proposition for customers. Adding to these
electronics, essential goods and LPG cylinders. lucrative offerings, the Tata Motors I&LCV range
The reefer variantsof T.7 are best suited for comes with a warranty of 3 years / 3 lakh
transportation of vaccine, pharmaceuticals, kilometres and also offers Sampoorna Seva 2.0
perishable goods, food items such as eggs and and Tata Samarth – the company's commitment
milk, along with farm produce. TheUltra to commercial vehicle driver welfare, uptime
T.7comes with a comprehensive set of fully-built guarantee, on-site service and customised
solutions, offering customers a one-stop solution annual maintenance and eet management
with multiple advantages like better nancing solutions.

Published & Printed by Mr Anand Mirchandani for the Proprietors of Transtopics, Mumbai
& Printed by him at Print Vision, 31 Jyoti Indl Estate, Nooribaba Darga Road, Near
Makhamali Talao, Thane (W) - 400 601.
Editorial & Advertising Ofce:
106, Bharat Chambers, Baroda Street, Masjid East, Mumbai 400 009.
Tel: 022-67439403, Email: [email protected]
Chief Editor: Anand Mirchandani; Editor: Girish A Mirchandani (+91-9958474000)
 Transtopics December 31, 2020 22

JAI
Bags Best Use of BTL Activities
at ACEF Asian Leaders Awards 2020
JAI (Jamna Auto Industries), the country's largest the results made JAI able to enroll new retailers
manufacturer of Tapered Leaf and Parabolic and mechanics with the company. In the process,
Springs for Commercial Vehicles (CVs) in India, JAI also touched the lives of those customers who
bagged the Best Use of BTL Activities at the 9th were underprivileged. Through its various
ACEF Asian Leaders Award 2020. JAI won the marketing initiatives, BTL activities & schemes,
award under the Excellence in Rural Marketing JAI has been able to make an emotional bond
Category. with its TG & their families as well. Started from a
few nos., within the span of 3 years, today, JAI
In 2020, JAI conducted various BTL activities to has dedicated 15,000+ mechanics, 11,500+
educate it's channel partners about the company retailers and 300+ distributors PAN India who
and products by creating an immersive touch work with JAI. During this year, 3500+ retailers
and feel experience for the customers. The idea and 2000+ mechanics got registered with JAI
was to emphasize on increasing the company's which is a 43% rise. With the use of digital
reach among the customers and to make them platforms, the company is now able to connect
aware with the latest updates. For this, JAI with its customers just in time. Each activity
integrated technology and used digital platforms undertaken by the company has been promoted
to promote on-ground initiatives and to take it's & circulated on various social media and all the
BTL activities to next level. information is sent to the TG via WhatsApp.
During this COVID pandemic, it motivates the
With it's customer centric marketing initiatives,
channel partners
and helps them to
connect with the
company from
anywhere, anytime.
Having the lion's
share of 70% in
OEM & 17% in
After Market, JAI,
being the no. 1 leaf
s p r i n g
manufactures in
India, is now the
l e a d e r i n
s u s p e n s i o n
solution providers
in India and our
practices have
forged a strong
bond with our
customers.
 Transtopics December 31, 2020 23

AITWA-NICDC
Organise Covid Awareness Programme
For Truck Drivers

All India Transporters Welfare Association from JNPT distributed kits containing quality
(AITWA) and National Industrial Corridor N95 masks, hand sanitizers and literature in
Development Corporation Limited (NICDC) multi-language to the Truck Drivers to spread
jointly organized an awareness programme on awareness about importance to continue the
COVID-19 at India's largest sea Port, JNPT. safety measures during Pandemic COVID-19 till
the vaccine is rolled out to all.
This was specially for Truck Drivers, who we call
Highway Heroes, under the Prime Minister's AITW A h a s b e e n doi n g su ch a ct i v i t i e s
ongoing campaign “JAB TAK DAVAI NAHI throughout the Pandemic. With the recent
TAB TAK DHELAI NAHI.” association with NICDC, the efforts are now
focusing on different ports of India. The drivers
Surajit Sarkar - NICDC New Delhi was present are barely having any time to listen to news or
for this event alongwith Mahendra Arya understand the gravity of the virus. Such
(National President AITWA), Ashok Goyal (Vice awareness campaigns will help in reducing the
President - AITWA) and J.K. Gupta (President - spread as the truck drivers move from state to
Bombay Goods Transport Association). Ofcers state.
 Transtopics December 31, 2020 24

MoRTH
extends validity of Vehicular documents
till 31st March 2021
MoRTH issues advisory;
asks States/UTs to implement advisory issued in letter & spirit

The Union Ministry of Road Transport and further advised that the validity of all of the
Highways (MoRTH) has extended the validity of above referred documents may be treated to be
vehicular documents like DLs, RCs, Permits etc valid till 31st March 2021. This covers all
till 31st Mach 2021 in the light of need to prevent documents whose validity has expired since 1st
spread of Covid -19. Ministry has today issued a Feb, 2020 or would expire by 31st March 2021.”
directory to the States and Union Territory
It adds, “Enforcement authorities are advised to
administrations in the regard.
treat such documents valid till 31st of March
MoRTH had earlier issued advisories dated 30th 2021. This will help out citizens in availing
March, 2020, 9th June, 2020 and 24th Aug 2020 transport related services, while maintaining
regarding extension of validity of documents social distancing.”
related to Motor Vehicles Act, 1988 and Central
All the States and Union Territories, Union
Motor Vehicle Rules, 1989. It was advised that the
Ministry said, are requested to implement this
validity of Fitness, Permit (all types), License,
advisory in letter and spirit so that the citizens,
Registration or any other concerned document(s)
the transporters and various other organizations
may be treated to be valid till 31st December
which are operating under this difcult time
2020.
during Covid Pandemic may not get harassed or
The advisory says, “Taking into consideration face difculties.
the need to prevent the spread of COVID-19 , it is
 Transtopics December 31, 2020 26

World Bank, Modi government

sign USD 500-million pact to develop
green, safe highway corridors
To build safe and green national highway
corridors, the World Bank and the Modi
Under the project, 783 km
Government recently signed an agreement for a
USD 500-million project. According to the of highways will be
Ministry of Road Transport and Highways, the developed in various
highway corridors will be developed in the states
of Himachal Pradesh, Rajasthan, Uttar Pradesh
geographies by integrating
and Andhra Pradesh. This big infra project will eco-friendly and safe
enhance the capacity of the ministry in
technology designs like
mainstreaming safe as well as green
technologies, according to a PTI report. Under industrial byproducts,
the Green National Highways Corridors Project, local and marginal
783 km of highways will be developed in various
geographies by integrating eco-friendly and safe
materials, as well as other
technology designs like industrial byproducts, bioengineering solutions.
local and marginal materials, as well as other
bioengineering solutions.
generating job opportunities for women by
According to the report, this infra project will set
training women-led micro-enterprises as well as
new standards in the development of safe
women collectives to implement green
motorable roads. Besides the selected stretches in
technologies in the corridors of national
the above-mentioned states will also help
highways.
improve connectivity and promote economic
development. The transport infrastructure's In India, the national highways carry nearly 40%
ultimate objective is to provide seamless of road trafc. However, many sections /
connectivity as well as reduce logistics costs. The stretches of these national highways have weak
ministry further stated that many investment drainage structures, inadequate capacity and
programmes have been launched by the Modi black spots prone to accidents. The infra project
government to strengthen and improve logistics will construct new pavements, drainage facilities
performance. Moreover, the Green National and bypasses; improve junctions; strengthen and
Highways Corridors Project will support widen existing structures; and introduce road
analytics to map the freight volume as well as safety features. According to the ministry, it is
movement pattern on the NH network, point out imperative that the investments in infrastructure
constraints, as well as offer innovative logistics are climate-resilient. To this effect, under the
solutions. project, disaster risk assessment of about 5,000
km of the NH network will be undertaken as
According to the ministry, the project will
well. The loan from the IBRD, worth USD 500-
support the government with an in-depth
million, has a maturity of 18.5 years including
analysis of issues related to gender in the
ve years' grace period.
transport sector. Also, the project will help in
 Transtopics December 31, 2020 27

Logistics and supply chain startup Delhivery

raises $25 million from Steadview Capital
ahead of planned IPO
Hong Kong-based hedge fund Steadview Capital
has bought $25 million (Rs 183 crore) worth of
secondary shares in Delhivery from an early
investor, ahead of the logistics and supply chain
provider’s plans to launch an initial public
offering (IPO) in the next 12 to 15 months. It is the
latest overseas fund to invest in the Gurgaon-
based company. Delhivery became a unicorn in
2019 when it raised $413 million in a Series F
round led by SoftBank Vision Fund, along with
existing investors Carlyle Group and Fosun
International. It was then valued at $1.5 billion.

In a statement, Ravi Mehta, Founder and CIO of

Sahil Barua
Steadview Capital, said, “We are excited to
partner with the excellent management team of Capital onto our cap table. We've known
Delhivery, which is transforming the logistics Steadview and Ravi for quite some time, and it's
industry in India across ecommerce and great to have them join us for this next phase of
traditional industry verticals." Delhivery's journey. Steadview is a long-term
investor and we see them playing a key role as
"The company’s tech-centric approach has been a
Delhivery heads towards the public markets in
key enabler in ensuring faster delivery speeds,
the next 12-15 months."
decreasing logistics costs, and increasing
ecommerce adoption in the country over the last At present, Delhivery has a nationwide network
decade. We believe Delhivery is well-positioned that touches over 17,500 pin codes and 2,300
to become the largest logistics company in India cities. It offers a full suite of logistics services such
and is poised for a strong growth trajectory in the as express parcel transportation, LTL (Less Than
years to come,” he added. Truckload) and FTL (Full Truckload) freight,
reverse logistics, cross-border, B2B and B2C
Sahil Barua, Founder and CEO of Delhivery,
warehousing, and technology services.
said, "We are delighted to welcome Steadview
 Transtopics December 31, 2020 28

Govt Releases Stamp & Special Cover

To Commemorate Birth Centenary Of
Logistics’ Legend Late Shri P D Agarwal
 Transtopics December 31, 2020 29

It was a proud moment for India's leading started with just one truck plying between
integrated supply chain and logistics solutions Calcutta and Bombay and even after it burnt in a
provider, Transport Corporation of India Ltd., as re, he compensated the customers. I believe that
they celebrated the 100th Birth Anniversary of these ideals are followed even today and Shri PD
their Founder Chairman, Shri. Prabhudayal ji managed to create a company that gives
Agarwal (PD ji), through an ofcial release of precedence to the nation and the society while
“Customized My Stamp and Special Cover”, serving with utmost sincerity, building
commemorated in his memory. The stamp was condence and trust in their customers. He
released by the Department of Posts, appreciated TCI fraternity & Shri. DP. Agarwal
Government of India, in the august presence of especially for strengthening the legacy left
the Honorable Minister of Skill Development behind by Shri. PDJi.
and Entrepreneurship (MSDE), Dr. Mahendra
Mr DP Agarwal, Chairman and Managing
Nath Pandey at New Delhi on 22nd of December,
Director - TCI Group, felt humbled to remember
2020.
how Shri PD Agarwal's efforts have been
Department of Posts was represented by Mr instrumental and a continuous source of
Dushyant Mudgal, Director Postal Services, inspiration for them. He quoted the words of Shri
Delhi Circle. TCI was represented by Mr D. P. PD ji, “I am ready to make any sacrice to please
Agarwal, Chairman & Managing Director - TCI the customer, if not why am I in this business. The
Group, Mr. Vineet Agarwal, Managing Director - customer is king.” and threw light on how Shri
TCI, Mr. Chander Agarwal, Managing Director - PD ji's contribution to our society extends
TCI Express & Director TCI and Mr. Rajkiran beyond transport to education, health, village
Kanagala, Sr. VP & Group Head - Business development, women empowerment.
Development.
Mr. Chander Agarwal welcoming everyone
Nearly 400 people were witness to this quoted PD ji “To me life means one long
momentous occasion, including esteemed opportunity to be good and to do well; if that is
members of AIMTC, AITWA, other leading state religion, I practice it most ardently every
transport associations, IIHMR, express and moment” that instilled in the audience, a sense of
logistics industry, via online video conferencing. complete commitment towards society at large.

Dr. Mahendra Nath Pandey, The Honorable Mr. Vineet Agarwal, thanked The Honorable
Minister of Skill Development and Minister of Skill Development and
Entrepreneurship (MSDE), while addressing the Entrepreneurship (MSDE), Dr. Mahendra Nath
gathering; having being so closely associated Pandey, for gracing the occasion and the
with Shri Prabhudayal Agarwal, the honorable Department of Posts, for its vital support and
minister mentioned that it is his privilege to have guidance, that the release of PDJi's “Customized
been given the opportunity to release the My Stamp and Special Cover” has been possible.
Customized My Stamp and
Special Cover in honor of Shri.
PDji.

Dr Mahendra Nath Pandey,

vividly recalled his interactions
and experiences with Shri PDji
and with TCI and quoted, “As a
dedicated logistics company,
backed with high values and
virtues, there is not one transport
challenge in the country that TCI
has not stood up to. Shri. PDji
 Transtopics December 31, 2020 30

Parliamentary Standing Committee

for Industry recommends
Franchise Protection Act for Auto Dealers
The Federation of Automobile Dealers
Associations (FADA) said that the Parliamentary
Standing Committee (PSC) headed by Dr. K
Keshava Rao has recommended that the
Government of India should come out with
Franchise Protection Act for Auto Dealers. This
recommendation was part of suggestions made
by the Standing Committee in its Report Number
303 titled “Downturn in Automobile Sector-Its
Impact and Measures for Revival”.

Commenting on this, FADA President, Mr.

Vinkesh Gulati said, “I am grateful to the
Standing Committee and specially the
Chairman, Dr. K Keshava Rao, for strongly
recommending Franchisee Protection Act for
Vinkesh
Auto Dealers.
Gulati
India does not have a Franchisee Law at present
eld between large automakers and local dealers.
due to which the OEM - Dealer agreements are
Currently, almost all auto dealerships are
highly skewed towards manufacturers. This
privately owned proprietorship or family owned
leads to a tussle in managing dealership
businesses. Meanwhile, large automobile
operations in various ways, very short terms
manufacturers are some of the biggest
agreements and non-existence of a clearly
corporations in India and overseas. Because of
dened exit policy. Many developed Countries
the disparity in size and power between
like Mexico, Brazil, Spain, Albania, Russia,
individual dealers and manufacturers, the
China, Indonesia, Malaysia, Japan, Australia,
Government need to accept the Standing
Italy, Sweden, and Belgium now have such rules
Committee Recommendation and bring in
to protect the franchisee's which started with
Franchise Protection Act to level the playing eld
USA introducing the same in 1980s.
between Auto OEMs and Auto Dealers.
There are various examples where Auto
Therefore, a fair competition Franchisee Act will
Manufacturers suddenly announced their exit
not be just a win-win for both the Auto OEMs and
from India leaving Auto Dealers high and dry
Auto Dealers, it will also be benecial to
with their investments going down the drain.
customers in long run. It will also provide
Few examples of such exits since 2017 are
continuing and necessary reliable services to the
General Motors India, Man Trucks (a VW Group
consuming public and also provide stable
Company), UM Lohia and Harley Davidson
employment to the people the dealership
India.
employs and skills in the community without
Franchise laws will actually level the playing displacing them from their home locations.”
 Transtopics December 31, 2020 31

My Long Journey With

TATA MOTORS
Biswanath Bhattacharjee, Part 63

This part of the story is dedicated to Mr. Puhup each family they booked the A.C double room.
Chandra By around 8 p.m, we reached the Nashik hotel &
we were given a warm welcome by Puhup & his
The invitation letter of Puhup's marriage brought family. My son & daughter were extremely
the wave of happiness in the ofce. Although he happy as there were lot of snacks, sweet dishes &
was quite young, he was very friendly with other unlimited supply of cold drinks. Next day, we all
senior colleagues. Almost all Bombay area ofce were with Puhup as a Barati & went to marriage
staff were staying in Thane with in 2 kms radius hall which was in another hotel. Sitting on a horse
& we had a family like relation. We used to visit with nicely dressed & colourful turban Puhup
each other's house & he was a known person to Chandra was looking like a prince of Jaisalmer.
my family. This was the reason, we all were One more surprise was waiting for us. We were
happy when we got the news that Puhups taken to another hotel where snacks were
marriage has been xed. We had decided every
body will be attending his marriage even the
Zonal Service Manager of Aurangabad Mr
Venkatesh conrmed he also would be joining.
Prior to visit Nashik, we sent our Tata Sumo to
our Dealer M/s United Motors for some minor
repairs & servicing with a clear instructions that
next day on or before 3 p.m the vehicle is to be
released. We had a plan to leave for Nashik by
road at 4 p.m However, we had forgotten that it
is a Tata Dealer who hardly keeps its
commitments. The vehicle was not ready even at
4 p.m Fortunately the works Manager Mr Vinod
Teli was allotted a brand new Sumo which he
decorated with lot of accessories as per choice.
Mr Teli by then became one of my best friend. I
took his personal Sumo and asked him to use our
vehicle for next two days.

Everybody was happy when i brought the nicely

decorated Sumo. They felt that it is a proper
vehicle for Barati's ( Bridegrooms convoy ).
Journey to Nashik was an wonderful experience.
Mr Veluchamy with his family, My family, Mrs &
Mr G.C. Manwani & Mr R.K.Jaiswal, our
Regional service manager were packed in the
sumo & I was in driving seat. Excellent
arrangements were made by the brides side. For
 Transtopics December 31, 2020 32

arranged for us. Oh my god. What a fantastic technicians under the control of Captain or Major
arrangement. There were some 20 to 25 different rank ofcer. The follow up is done from our
delicious items were waiting for us. We were regional ofce – Delhi & the local ofce is
thinking for evening snacks these much items are involved to get these vehicles inspected, &
arranged, what will happen in the dinner, we accepted by the local army authority. Once the
may not be able to count the items. We all enjoyed acceptance documents sent, our Delhi ofce
the marriage fully perhaps it was more than any collect the payment from Army HQ. But this job
of our close relatives marriage. Next day, we is not that easy. The Subedars / JCO's will be
were preparing to leave Nashik, but decided to checking each & every vehicle, prepare the defect
go to Trambakeshwar temple rst & after Shiv report which we will have to rectify & again put
darshan, we shall move for Thane. for inspection to get it accepted. To handle an
Trambakeshwar temple in Nashik is very army project is a great responsibility &
famous, it is one of the Pith as per Hindu challenging. The person needs to be polite, soft
mythology like Benaras, Prayag, Haridwar. spoken, punctual & having patience to face
Kumbh Mela also a feature of this place. After continuous rejections, know the army culture
offering puja in the temple, we left Nashik with a and capability to make the friendship with army
sweet memory of Puhups marriage. Almost personals.
after a week, Puhup joined ofce & distributed
I was given this prestigious project to handle 173
nice gifts to all of us. We were so much involved,
vehicles. This was a challenging job. The army
thrilled & enjoyed the event, that even almost
inspection ofce was at a place called Malad, it is
after 20 years , i could not forget it. That was the
an western suburb of Bombay. I asked two
type of bonding we had.
support from Mr Veluchammy. 1. Free hand in
We got a big order from Indian Army for supply selecting the team for this job & ofcial
fully built 4 wheel drive trucks. Out of this, 173 involvement of Dealer's works manager.2.
nos will be delivered to Bombay from where it Immediate process of dealers bills on this project.
will be sent to different army base after thorough This was agreed. I swung into action. Kept my
inspection & acceptance by their technical team. 207 pick up van ready. Formed a team of
Our army administration had a very good system mechanics from United Motors. While i shall be
of payment to the supplier. As soon as the going to Army base at Malad, it was decided that
vehicles are delivered to their Inspection wings, Mr. Vinod Teli would be coming to Malad with
95% of the cost of the vehicles are paid & rest 5% me at least 2 days in a week. How the project was
cost is paid after the inspection & passed by army completed, Go to Part 64.
 Transtopics December 31, 2020 34

The future of
Trucking industry in India
Peer Mohamed A.
Former President, Pondicherry Goods Transport Association

In India Trucking industry are already

oversupplied market, recent ve years time high
volume sales of trucks on account of GST inputs
coupled with a sharp decline in manufacturing
activity made us witness the sales decline in the
recent past. It is certain that trucking in India and
globally will transform signicantly as we see it,
and that the days of lower utilization and lower
protability are very limited.

Change is inevitable; rather, it is a necessity that

feeds the insatiable hunger of man to experience,
mould, and grow, something we truly believe in.
Moreover in the present times, it is not just the
change that is important; rather it is the rate of
change which has become signicant. So much so
that, if something is not evolving faster with
changing technology; it is either perishing or
getting replaced immediately. Point of inection,
change or rather disruption is slowly becoming
synonymous; such is the pace of evolution today.
We believe the trucking industry is now entering
that phase of rapid evolution and that too at a
very fast pace. have made them think; that continuous growth
in sales is not always going to happen and that
Any conversation around trucking cannot skirt freight decline and very poor eet utilization will
the issue of economic uncertainty in India, but as make it difcult for eet owners to run this
the nation embraces the reality of a $3 trillion business protably in longer terms.
economy that is now embarked on a rather swift
journey towards $5 trillion-milestone, such a Moreover, it should pass on a clear message to
pause and re-calibration of economic realities is OEM's that technology in terms of mechanics in
expected. In an already oversupplied market; trucks is getting saturated and that “Truck as a
recent high volume sales of trucks on account of product” alone will no longer be a selling story;
GST inputs coupled with a sharp decline in rather “Truck as a solution” would be. In fact,
manufacturing activity made us witness the sales Truck as a self-assisted business generator
decline in the recent past. However, this will not should be seen as a visible option in the near
be permanent and sales will grow again as future“Truck with loaded business”; is soon
manufacturing activity picks up. But there is a going to be a reality in the trucking landscape
rider, especially for OEMs in India which should and should become the single largest
 Transtopics December 31, 2020 35

employment generation module. Trucks cities; they continue to do so as they do not have
installed with business search engines the ability to nd return loads from other
connecting drivers directly with the destinations; however with this business search
manufacturers will soon be driving the trucking engine they will be able to move in multi-
industry and moreover new truck sales. And one directions thereby not only it will increase their
should not take the impact of this search engine eet utilization it will also normalize the
lightly as this will soon start governing the terms availability curve across loading points in India.
of the sales more than the truck itself. This Thus demand and supply will normalize to a
technology once onboard a truck; will not only greater extent
predict the need for new trucks but will also
become a major insight creator for assisting 4. Auto debit: This technology once linked to a
designs of future trucks. specic bank account will slowly enable auto -
debit of EMIs, Insurance, Fuel and Toll costs thus
Here are my observations on how it is going to acting as an Individual business unit that would
impact the entire trucking industry: be transacting the entire revenue and
expenditures on its own. Not only will it give
1. Truck as Investment: Since a truck will be able
clarity on cash in hand to the owner it will also
to locate business on its own and a driver would
enable him to decide future routes and
only be required for a driving skills; it will not be
commodities he wishes to take
far when a truck will slowly convert into an
investment opportunity with a visibility on 5. “Owner Operators – the Real King”: With the
minimum xed earnings and an asset owner will evolution of installed business search engines,
be able to monitor its returns sitting remotely. owner-operators will be greatly empowered.
The driver neither will be required to deal with Owner-operators represent the largest share of
daily hassles of locating a business nor will he be truck ownership in India; they will now soon sit
bothered about return loads, in short Truck will on the throne and grab the position they
manage its own uptime. This reality will enable deserved for years. They will be the direct
truck manufacturers to offer trucks as a service or decision-maker for every associated parallel
a solution and not a product. This new business business lines to evolve in the sector may it be
model will enable the vehicle manufacturer in tires, oil, lters, service centres or for the matter
rolling in additional solutions such as insurance, of the fact the trucks itself. Truck hire go up by 2%
scheduled maintenance, telematics, and other due to festival demand: It is certain that trucking
solutions to enrich the return-on-investment in India and globally will transform signicantly
their vehicles will deliver to the eets or owner- as we see it, and that the days of lower utilization
operators that purchase trucks. and lower protability are very limited. We are
poised to experience the emergence of a new era
2. Reduced Financing Costs: Business search
in the world of trucking with the adoption of
engine over the course of a few years (3 to 5 yrs.)
new-age technology which will usher truck-as-a-
will start nding a minimum value business for
service business model to Indian truck makers.
the truck buyer, thus it may help the nanciers to
This coupled with fast-improving infrastructure,
establish the risk associated with the nancing a
GST implementation, the introduction of e-way
specic truck type. Having higher visibility on
bills and government will for change, could be
revenue lines will help in reducing the vehicle
the supporting forces that will further transform
nancing costs eventually further increasing
the Indian trucking industry. Obviously, a
protability
change of this magnitude will not happen
3. Zero dependency on Route Type: For now overnight but strong foundations are being laid
small eet owners and owner-operators have an by both vehicle manufacturers and innovative
acute dependency on route type they follow; thus companies to make this a reality over the next 2 to
if someone is moving north between specic 5 years.
 Transtopics December 31, 2020 36

Daimler
to launch India's rst electric truck
While several commercial vehicle makers have launched fully electric buses
on Indian roads, no manufacturer has shown interest in launching electric trucks.
If it succeeds, Daimler will have the first mover’s advantage.
The company says it will detail the plan at its Future Mobility event next year.

Daimler, the heavy-duty truck and bus maker, is planning to launch an electric truck.”
planning to launch India's rst electric truck as it
The brand Mercedes-Benz, which is popularly
continues to bet on the domestic market.
associated with luxury vehicles, belongs to
The German auto giant, which makes medium Daimler AG. Daimler's commercial vehicle
and heavy trucks and buses under the division also uses the three-pointed star logo on
BharatBenz and Fuso brands, is scheduled to its trucks.
have an event next year titled 'Future Mobility'. A
The government is keen to cut down oil imports
Daimler India Commercial Vehicle (DICV)
and make India a global manufacturing hub for
ofcial said the company would reveal its plans
electric vehicles. For the international market
for the electric truck at the event.
Daimler is on course to launch a fully-electric
Last week, at the FICCI annual general meeting, truck in 2021.
Union Minister Nitin Gadkari said: “I had an
The light-duty Fuso eCanter is the rst all-electric
interaction with the managing director of
truck from Daimler Trucks for series production
Mercedes-Benz. He was telling me they are
 Transtopics December 31, 2020 37

and its second-generation version will be Other companies, with the backing of Chinese
launched next year. The eCanter has a drive rms such as BYD and Beiqi Foton, have also
range of 100 km and can carry a payload of up to bagged large orders to supply electric buses to
3,200 kg. Indian transporters.

Daimler has been at the forefront with regards to Despite a fall of 36 percent in wholesale volumes
introduction of new technology in India. It was during 2019 to just under 14,500 units, DICV has
the only company to have launched Bharat Stage refused to take its foot off the pedal as far as
5 (BS-V) trucks in India even though there was no investments are concerned. The Chennai-based
such requirement as manufacturers were asked CV maker signed a memorandum of
to jump from BS-IV to BS-VI. understanding with the government of Tamil
Nadu in May this year covering a further
If Daimler launches an electric truck in India it
investment of Rs 2,277 crore.
could get the rst-mover advantage. While
several commercial vehicle makers have The investments are designed to expand CV
launched fully electric buses on Indian roads, no production at the Oragadam plant. This
manufacturer has shown much interest in investment represents the creation of around 400
replicating this for trucks. jobs. DICV's retail volumes stood at just under
15,200 units, down 29 percent from 2018.
Home-grown commercial vehicle heavyweights
such as Tata Motors, VE Commercial Vehicles, The company's market share in the over-9-tonne
Ashok Leyland and Mahindra & Mahindra have category slipped slightly to 5.8 percent in 2019
either delivered fully electric buses to buyers or from the 6 percent clocked in 2018. In its own
are working on developing such vehicles for submission, the company said this was its worst
launch in the coming years. market share in ve years.

National Highway Status For

Greeneld Lucknow-Kanpur E’Way
The proposed greeneld Lucknow-Kanpur Expressway will soon be accorded status of a National
Highway. The National Highways Authority of India (NHAI) had sought approval from the Uttar
Pradesh government for the same. The proposal has been accepted by Uttar Pradesh Chief Minister Yogi
Adityanath and a no-objection certicate will now be sent by the state government to the Centre in this
regard.

A government spokesman said that the DPR work of

the project for the construction of 63-km Kanpur-
Lucknow Expressway has been given to Aegis (India)
Consulting Engineers Pvt Ltd. The alignment of the
project has also been nalised. After it is built, the
travel time between the two major cities of the state will
be reduced to 45 minutes. As per the proposal, 13-km
of the greeneld expressway from Lucknow's Amausi
to Bani would be elevated. It will be connected to the
proposed ring road in Kanpur,
 Transtopics December 31, 2020 39

The Indian supply chain must effectively

bridge its competitiveness gap of
USD 180 billion: CII-Arthur D. Little report
India’s supply chain and logistics sector is one of towards creating an optimized and digitized
the largest globally, with a logistics industry of logistics ecosystem, a delayered distribution system
USD 215 billion, growing at a CAGR of 10.5 and a green, resilient and exible supply chain. The
percent. However, despite its size and criticality reimagined supply chain will help realize the
to economic growth, India’s supply chain faces Honorable Prime Minister’s Atmanirbhar Bharat
several barriers to growth notably an unbalanced vision and supplement Make-in-India and Start-up
logistics modal mix, high indirect costs, India strongly, catering to the global supply chain,”
fragmented infrastructure and networks, and he adds.
limited technology adoption.
Thomas Kuruvilla, Global Board Member and
A new report by Arthur D. Little and the Managing Partner of Arthur D. Little Middle
Confederation of India Industry (CII) highlights East, says, “To manage the supply and demand
the need for immediate attention given the high shocks in the supply chain, India needs to nd
logistics cost of 14% of GDP in India compared to new ways of doing businesses and bring
8-10% of GDP in the US and Europe.. Titled innovation into their planning and operations”.
Reimagining India’s supply chain: A bold vision “The report discusses at length international
for 2030, the report, brings to light these issues learnings that Indian supply chain leaders could
and sets a bold Vision 2030 and roadmap for take inspiration from,” says Kuruvilla.
ensuring global competitiveness of India’s
Harinarayanan S, a supply chain expert and
supply chain. The report was released by Mr.
facilitator of the CII-Supply Network &
Pawan Kumar Agarwal, Special Secretary
Procurement Forum, as well as one of the co-
(Logistics), Government of India, at the CII
authors of the report, states, “A national supply
National Packaging Conference today.
chain taskforce with ve working groups will
The report details the improvements needed to focus on the crucial dimensions of supply chain
make India’s supply chain competitive. It operations across the sectors of relevance. These
provides a glimpse of learnings from around the groups will meet monthly under the leadership
world, presents ve imperatives for the Indian of CII and Arthur D. Little to realize the
supply chain, and sets aspirations to achieve aspirations set in the Vision 2030 report.”
Vision 2030. It also brings to light the
The key ndings of the report are:
vulnerabilities that the supply chain network is
exposed to if transformative actions are not Logistics cost in India stands at 14 percent of
taken. GDP, compared to the global average of
approximately 8 percent, creating a
“To bridge the current competitiveness gap of USD
competitiveness gap of USD 180 billion for India,
180 billion, India needs to halve logistics cost from 14
which could increase to USD 500 billion by 2030.
percent of GDP to 7 percent” says Barnik Chitran
Maitra, lead author of the report and Managing Supply chains are transforming globally by
Partner of Arthur D. Little India and South Asia. adopting Industry 4.0 trends including agile
“The supply chain industry in India needs to be networks, disruptive technologies, end-to-end
reimagined and efforts need to be made to move
 Transtopics December 31, 2020 40

visibility, and risk mitigation vs, risk expand cold chain storage infrastructure
management.
Hasten adoption of cutting-edge technology:
India can benet from the experience of mature
Digitize more than 90 percent of the supply chain
economies, which have used emerging
network; implement technologies such as
technologies such as articial intelligence,
articial intelligence, blockchain, and the IoT
blockchain, and the Internet of Things (IoT) to
enhance supply chain operations and resilience. Restructure the supply chain:

To make India’s supply chain competitive, Build omni- channels and simplify supply chain
efcient, and resilient, Vision 2030 aims to pare network; ensure visibility; and collaborative
logistics cost to 7-8 percent of GDP, optimize the planning
logistics modal mix, digitalize 90 percent of
supply chain operations, develop omni- Enhance skill development and talent
channels, move towards green supply chains and management:
enhance skill development. Senior management in organizations to become
more comfortable with digital transformation,
The report takes a long-term view of the Indian
data analytics, and AI; develop cross-functional
supply chain and sets ve broad aspirations to
teams to facilitate supply chain decision-making.
achieve Vision 2030.
Move towards a green supply chain:
Optimize the logistics and warehousing
network: Move towards greener modes of transportation
Reduce logistics cost to 7-8 percent of GDP; to reduce carbon footprint by 50 percent; use
optimize the logistics modal mix with roads electric vehicles for deliveries, targeting a 50
constituting 25-30 percent, railways comprising percent electric eet; optimize transportation
50-55 percent, and waterways accounting for 20- routes; use biodegradable or recyclable materials
25 percent; reduce indirect costs to 20-25 percent; for packaging and deliveries.

GPS based toll collection system cleared;

India to be toll booth free
in 2 years: Gadkari
New Delhi: Union Minister of Road Transport & Highways and MSMEs Nitin Gadkari said that the
Government has nalised GPS-based(Global Positioning System) toll collection to ensure seamless
movement of vehicles across the country. He further added this will ensure India becomes 'toll booth
free' in the next two years. The toll amount will be deducted directly from the bank account based on
the movement of vehicles, explained Gadkari.

While now all commercial vehicles are coming with vehicle tracking systems, the Government will
come up with some plan to install GPS technology in old vehicles, he said. "With the help of Russian
Government we have accepted the GPS system and in the next two years we will have a toll collection
system running on GPS technology," Gadkari said on the sidelines of an event. The Minister
expressed hope that the toll collections may reach INR 34,000 crore by coming March. Gadkari
informed that by using GPS technology for toll collection, the toll income in the next ve years will be
INR 1,34,000 crore.
 Transtopics December 31, 2020 41

COVID-19 Vaccination:
The Challenges & Factors that will help
transform the Indian Logistic and cold supply chain
Aditya Vazirani,
CEO – Robinsons Global Logistics Solutions

Even as the country gears up for the rst million vaccine during transportation and effectively
doses of the COVID-19 vaccine by January 2021, handle and administer the vaccineonce it
the massive efforts announced by the reaches its destination
government to ensure the efcacy of this
- Collaborative partnerships: In order to
monumental initiative, is already driving
accomplish this task, the government will be
transformation in the logistics and cold supply
calling upon several stakeholders, making
chain sector in the country. This is a massive and
this one of the most co-ordinated and
one of its kind initiative that is going test the
collaborative partnership between public and
resolve, efcacy, trainability, co-ordination, IT
private organisations, spread across the
and operational muscle and the government's
length and breadth of the country
ability to orchestrate a co-ordinated, efcient,
and smooth vaccine storage and distribution While in line with the above requirements, the
plan. Some of the key challenges and features government has recently announced plans to
that make this a unique endeavour, include: strengthen the cold storage facilities
infrastructure, which includes 29,000 cold chain
- Mass Drive: There has never before been such
points across the country, 240 walk-in coolers, 70
a massive adult vaccination drive in the
walk-in freezers, 45,000 ice-lined refrigerators,
country and the sheer scale of it makes it an
41,000 deep freezers and 300 solar refrigerators,
unprecedented task ahead that needs to be
all of which will be provided to aid in creating a
carried out with utmost efciency and
robust cold distribution and supply chain
accuracy. Further, the fact that the vaccine
network for the vaccine. While this
needs a repeat dosage after a set duration,
announcement has been a welcome one for both,
makes this a complex process that needs an
health and logistics players, there still remains a
equally complex follow up
lot to be done to ensure the herculean task can
- Temperature Sensitivity: The vaccines reach fruition. Listed here are some factors that, if
require to be transported at well-regulated considered and adopted, can make this a massive
temperatures from the time of being success.
packaged to being delivered to hospitals,
1. Leveraging smart technology: India still
making a uniform and thoroughly regulated
needs to be mindful of the ongoing COVID wave
cold storage and distribution as a non-
and hence, ensure precautionary measures by
negotiable prerequisite
minimising human employment, and replace
- Skilled Workforce: Apart from logistics and them with technology enabled services,
cold supply chain, the vaccine transportation wherever possible. While there is technology
and administration also requires a highly enablement to ensure transparency and real time
skilled set of medical and logistic staff; that is update of the distribution process initiated by the
aware about the nuances and strict protocols government, a lot more can be done to ensure
required to maintain the efcacy of the efcacy and accuracy during the entire
 Transtopics December 31, 2020 42

undertaking. Leveraging the best of emerging during any given point of its lifecycle is vital to
technology and smart IoT devices for ensure there are no slip ups that can damage the
temperature regulation, tracking, cold storage viability of the vaccine. Accordingly, a short term
monitoring etc., can go a long way in minimising training program that allows a certicate or
human intervention and maintaining viability of endorsement of sorts, may be rolled-out, and
the vaccines. This could be an opportunity to only certied or endorsed personnel be allowed
showcase best of health tech's and logistic tech's to be a part of the entire supply chain. This can
prowess of India as a country and what it can help minimise human errors and accidents.
achieve when driven by excellence and purpose.
4. Localisation of efforts: Given the length and
2. Sustainable and mindful use of resources: breadth of our country, localisation is going to be
Although a large scale initiative like this the key to effective administration of the vaccine.
demands enormous manpower and resources, a While local governments and health authorities
mindful and conscious approach to resources are forming task forces to ensure effective
will help arrest spread of the pandemic, optimise distribution, partnership with local logistics
energy while also reducing chances of human SME/ MSME and third party logistic service
error. Sustainable options such as a wide scale providers for cold supply chain support, can be a
use of solar powered cold storage set-ups and key to minimising efforts and speeding up the
portable refrigerators and mindful packaging processes. After a thorough application and
can help optimise energy consumption and verication process, these 3PL and 4PL
control the waste generated out of this task whilst entrepreneurs can lead the way to help build a
ensuring resources in terms of money and time robust, collaborative distribution network.
can be optimised. Employing locally trained
staff, setting up solar power infrastructure, This is unarguably set to be one of the largest,
operating in shifts to ensuring a backend nationwide collaborative effort for Indian
infrastructure of recycling the used vials/ healthcare, technology and logistic sector, driven
packaging etc., is equally important to ensure by the Indian government, and is set to alter not
such a huge cold storage and distribution only the course of the pandemic, but also the
endeavour doesn't translate into an energy crisis entire heath and pharmaceutical supply chain,
or a waste management nightmare. There is especially the cold storage and distribution
already a considerable impact on the network.
environment with single use PPE kits, masks and
other items used to combat virus. With a
considerable time frame ahead, the planning is
critical to ensure the protection of the
environment is considered.

3. Focused manpower development: Given the

targeted efforts towards the vaccine distribution
plan, it is extremely important to also focus on
the manpower development that will be
associated with the task, at various levels. While
training cold storage and distribution task force
in handling the vaccine and training healthcare
administrators in the basics of handling the
vaccine during transit, are being taken care of,
there also needs to be a focus on training the
ancillary staff. Truck drivers and cargo/
consignment handlers to on-ground staff that
will be responsible in handling the vaccine
 Transtopics December 31, 2020 06
Problems faced by small eet owners

Unite to break
the corruption chain
Problems faced by small eet owners
Meet Morjaria

The trucking sector in India is the

backbone of the economy and contributes
immensely to the economic growth of the
country. Nearly 65% of freight is transported
through road. However despite being of such
importance as well as magnitude, the entire
sector is operated and managed in a much
unorganized manner. If we take a close look into
the ownership pattern, it crops up very
interesting details, which suggest why the
industry is shaped in the way it is. Here is the
ownership pattern of trucks in India:

· 75% own less than 5 trucks

· 15% own less than 20 trucks

· 10% own more than 20 trucks Meet Morjaria,

Head of ops, Shree Jalaram Transport
One of the biggest challenge that the industry
faces is that the youngsters do not want to join small truck owners are the ones who suffer the
their family business, and even though they have most and their concerns never reach the
the education and support system to bring in the concerned authorities. Most of these 75% are also
much needed change, they prefer using their truck drivers and they also engage their close
education and skills elsewhere. In fact besides family members to drive trucks, thus creating
transporters, even the drivers' children do not employment opportunities within the family as
want to be part of this vast industry. They are well. But truck driving is becoming increasingly
happy doing more comfortable jobs, even if they frustrating and tiring because of the hardships
are less paying. posed on the highways, most of which are
Despite being a good 75% of the industry, the avoidable. The harassment of truck drivers by
 Transtopics December 31, 2020 45

authorities is making operations as well as life q Large number of check post inter state
miserable for them. The larger impact is that it is
q Harassment of drivers
killing the entire industry, since shortage of truck
drivers would mean lesser trucks on road and q Poor highway conditions
more trucks standing idle – more NPAs. We have
been seeing truck drivers posting videos of q Unaffordable vehicle maintenance
themselves and their brethren being harassed on
q Lack of digital information
the highways. However until now we have not
seen any action against the authorities nor has the q Highway robberies
situation on ground changed for the drivers. I
would urge all the members of the transport Unfortunately none of the above problems are
industry to unite and break the corruption chain. being addressed and the drivers are left to fend
for themselves and nd a way out. We have so
Nearly 75% group owns less than 5 trucks who many transport associations across India, but
are self-employment generators the family they seem to be doing little for the truck drivers.
members or their relatives drives the trucks and And as mentioned earlier, corruption is
earn for the living. The harassment of truck something that has made life miserable for the
drivers is making operation and life miserable truck drivers. They are pulled up and abused by
corruption is killing the sector. I've seen many ofcials of every rank – just to extract money
small operators sharing their videos of from the truck drivers. We have been talking of
harassment on road. I request all my friends from digitization and other such major developments.
transport industry let's get united and break the Why not come up with a system where is truck
corruption chain. need not be stopped at every few hundred
kilometers or at every check post or by every
While the truck drivers continue relentlessly
ying squad! Can we have a seamless system for
with their efforts to make sure supplies reach
movement of goods across the country?
across the country, here are a few problems that
they encounter on a daily basis: The road transport industry, despite being the
backbone of the economy, is in very bad shape
q Daily hike in diesel prices
and in desperate need of a surgery to get rid of the
q Hike in tire and spare parts prices cancers of corruption and harassment. Do we
have the will and unity to confront the
q Hike in toll prices government to carry out this surgery?
 Transtopics December 31, 2020 47

DICV Ties Up With Various

Banks / NBFCs To Provide
Financing Options to Customers
Daimler India Commercial Vehicles (DICV) has
partnered with 18 leading banks and NBFCs to
offer customers nancing options for its vehicles.
The company said it has signed Memoranda of
Understanding (MoUs) with banks and NBFCs
(Non-Banking Financial Companies), including
ICICI Bank, State Bank of India, Bank of Baroda,
Axis Bank, IndusInd Bank, Sundaram Finance,
Yes Bank and Mahindra & Mahindra Financial
Services.

Besides, the company has entered into similar

MoUs with Equitas Small Finance Bank, Tata
Capital Financial Services, Shriram Transport
Finance, SREI Equipment Finance Ltd, PKF
Finance, Federal Bank, IDFC First Bank, J&K
Bank, AU Small Finance Bank Ltd and Karnataka
Bank. our customers to grow their business."

Adequate nance schemes have long been a key DICV's move to sign MoUs with banks across the
challenge for the CV industry and the impact of country is in line with BharatBenz's customer-
COVID-19 has made it even more difcult to centric approach and commitment to providing a
secure loans. The partnerships will deliver hassle-free buying experience. New and existing
greater nancing exibility and convenience, the customers will enjoy seamless support from
company said in a statement. these banks and NBFCs, the company said.

Commenting on the development, DICV CEO As part of the MoUs, the banks will evaluate the
and Managing Director Satyakam Arya said:"As nancial needs of the buyer and develop
many CV customers are currently facing appropriate nancing packages. Daimler's own
nancing hurdles, MoUs such as these add captive nancing brand, Daimler Financial
substantial choice and value." He further said: Services India, will also continue to provide
"These competitive nancing solutions will help nance options to customers, the statement said.
 Transtopics December 31, 2020 48

Indian Auto Component Industry

clocks turnover of Rs. 1.19 lakh crore
(USD 15.9 billion),
de-grows 34 per cent
in rst half of 2020-21
 Transtopics December 31, 2020 49

Automotive Component Manufacturers

Association of India (ACMA), the apex body
representing India's Auto Component
manufacturing industry today announced the
ndings of its Industry Performance Review for
the rst half of scal 2020-21. The turnover of the
automotive component industry stood at Rs.1.19
lakh crore (USD 15.9 billion) for the period April
2020 to September 2020, registering a de-growth
of 34 per cent over the rst half of the previous
year.

Commenting on the performance of the auto

component industry in India, Vinnie Mehta,
Director General, ACMAsaid, “The auto
industry witnessed a downturn in FY2019-20,the
situation further aggravated with the outbreak of
the pandemic and the lockdown. While the rst
quarter for FY20-21 wassignicantly stressed,
however with unlocking of the economy, the
sales of vehicles witnessed improvement,
month-on-month, in the second quarter. The
component industry,in tandem, posted a
subdued performance with de-growth of 34 per
cent over the rsthalf of the last scal, registering
a turnover ofRs.1.19 lakh crore (USD 15.9 billion). side challenges.Going forward, whilst the
However, for the rst time ever, the industry performance of the industry during the festive
witnessed a trade surplus with Auto Component season has been heartening, there are indications
exportsat Rs.39,003 crore (USD 5.2 billion) and that the vehicle demand, in the coming months,
imports at Rs.37,710 crore (USD 5.0 billion); both will be sustained. This, together with the
exports and imports declined by23.6 per cent and increased focus by the auto industry on deep-
32.7 per cent respectively. The localisation and the recent announcement of PLI
Aftermarket,estimated at Rs. 31,116 crore,also schemes for the automotive sector and
witnessed de-growth of 15 per cent.Component cell/battery manufacturing by the Government,
sales to OEMs in the domestic market contracted augur well towards making the auto-component
the most to Rs.87120 crore (USD 11.6 billion), industry a self-reliant one. We are also hopeful
declining42 per cent”. that the Government would consider PLI or
Sharing his insights on the performance of appropriate manufacturing schemes for auto-
theauto componentindustry, Deepak Jain, electronics and xEV components as well.”
President, ACMA said, “In the backdrop of the Elaborating on the mood of the industry and
pandemic and the lockdown, the automotive outlook for the near to mid-term future, Jain
industry faced unprecedented challenges in the mentioned, “According to the recent ACMA-
rst-half of FY 2020-21.The auto component PwC joint survey of ACMA leadership, despite
industry, through agility, exibility and nancial concerns ofanother wave of pandemic,the
discipline, has displayed remarkable resilience industry is cautiously optimistic about the
and has comeback strongly with the unlocking of prospects of the Indian economy and the
the economy. I am thankful to the OEMs for their automotive sectorfor FY2021-22. Companies
support and for the timely intervention by the have mostly recovered and are back to moderate
Government, especially in addressing the supply nancial health, post the lockdown. Financially
 Transtopics December 31, 2020 50

healthy and growth focused companies are also and 30 per cent respectively.
actively focusing on CAPEX and acquisition /
- The key export items included drive
merger opportunities. While increased visibility
transmission & steering, engine components,
and commitment to new program timelines from
Body/Chasis, Suspension & Braking, among
OEMs is a key industry expectation, at an
others.
organizational level, focus on employee
productivity and organization structure · Imports: Imports of auto components
consolidation will be the key thrust areas.” decreased by 32.7per cent to Rs.37,710crore
(USD 5.0 billion) in H1 2020-21from Rs.56,066
Key ndings of the ACMA Industry
crore(USD 8.2billion) in H1 2019-20. Asia
Performance Review for H1 2019-20:
accounted for 60 per cent of imports followed
· Exports: Exports of auto components declined by Europe and North America, with 30 per
by 23.6 per cent to Rs.39,003 crore (USD 5.2 cent and 9 per cent respectively. Imports from
billion) in H1 2019-20 from Rs 51,028 crore all geographies witnessed steep decline.
(USD 7.4 billion) in H1 2019-20. Europe
· Aftermarket: The aftermarket in H1 2020-21
accounting for 31 per cent of exports, saw a
witnessed de-growth of 15 percent to Rs
decline of 28 percent, while North America
31,116 crore (USD 4.1 billion) from Rs.36,607
and Asia, accounting for 30 per cent and 29 per
crore(USD 5.3 billion)inH1 2019-20.
cent respectively also registered decline of 28

Industry net foreign exchange positive for the first time ever
Exportsat Rs.39,003 crore (USD 5.2 billion) decrease by23.6 per cent
Imports at Rs.37,710 crore (USD 5.0 billion) decrease by 32.7 per cent