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Notices 15 Nov 2022 | 6:14 am

Textile processors affected as transportation cost hiked 42%

Textile processing units in south Gujarat have decided to stop buying lignite from mines in the region with immediate effect following a 42% hike in transportation cost.

Surat: Textile processing units in south Gujarat have decided to stop buying lignite from mines in the region with immediate effect following a 42% hike in transportation cost.
The decision was made during a meeting of South Gujarat Textile Processors Association (SGTPA) on Monday.
SGTPA officials said that the transportation cost of lignite from mines in Surat, Bharuch and Narmada districts was Rs 470 per tonne. But the transporters hiked the charges to Rs 665 per tonne post-Diwali.

The coal is supplied through Gujarat Mineral Development Corporation (GMDC).

“The hike in transportation cost is about 42%. We cannot afford the hike. So all textile processors in south Gujarat have agreed to stop buying from these mines,” said Jitendra Vakhariya, president of SGTPA.
SGTPA has decided to resume the purchase of lignite from the mines only if the transport cost is reduced to the earlier level. “About 500 truckloads of lignite is supplied to textile processing units in south Gujarat from these mines. The processors plan to buy coal from other mines now,” said an SGTPA member.
He said that the exact reason for the huge hike in the transport cost was not known.

 

News Source: Times of India

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