sidchhikara
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Take 15 mins out of your 'busy' schedule and read this article by Atanu dey.
Any member who has personal stories of corruption, please feel free to contribute.
http://www.deeshaa.org/2009/09/26/of-trucks-and-roads-and-corruption/
Of Trucks and Roads and Corruption
26 September 2009 3 Comments
Let me tell you a story. It’s a vignette of what I consider to be important although it may appear to be rather trivial. Perhaps its apparent triviality is what should astonish us. But allow me to first recount a conversation I had the last week.
A close friend of mine was visiting me one evening. Let me preserve his identity by just identifying him as RL. I have known RL since the first grade. Born to a Marwari business family, RL has done reasonably well in business. I asked how things were with his business of arranging trucking services all over India. “Same old, same old,” says RL.
“Tell me more,” says I. “You were talking to someone on the phone just now and you said ‘890′. What was that about?” I asked.
“That’s the price that I was negotiating for transporting one metric tonne of goods between Mumbai and Raipur,” replied RL.
I had no idea of how this truck transportation business works. For no particular reason I inquired further.
“So how many metric tons does a truck normally carry?” I asked.
“About 35 tons,” RL said. “But that’s above the allowed limit. The limit for the average two-axle truck is only 16 tons. But if you stick to that, the numbers don’t work out.”
“So you mean to say that the trucks are overloaded?” I said.
“Of course. At the allowed 16 tons max, it would cost 1200 rupees per ton to move material. So we just pile on whatever to break even. It’s a competitive market,” said RL.
“But then aren’t there checkpoints along the route? Don’t they figure out that the trucks are overloaded? Are there weighing stations where the trucks are weighed to see that they are within the limits?” I asked.
“Yes of course. There are many RTO checkpoints. The deal is simple. Every month, for each truck, there’s a schedule of payments. Say between Mumbai and Raipur, the rate is Rs 20,000. Once you pay that for a truck, you are free to load the truck to whatever the truck will bear, never mind the legal limit,” RL said.
“And how many trips does that cover?”
“About 5 round trips a month. On an average it takes three days each way. Works out to about Rs 2,000 per transit. But it allows you to keep the costs down and therefore it works out for all concerned,” says RL. “It’s routine stuff. Once you pay the 20,000 rupees, there are not more hassles. You only pay at one central location and the money is divvied up among the various stakeholder along the way,” replied RL.
“And who are the stakeholders?” I ask.
“You know, everyone. All the way up to the concerned state and central government ministers. There is a regular schedule.”
“Wow! That’s really neatly done. So even the top politician must be getting his cut,” I said.
“Naturally. It would not happen otherwise. Everyone has to have his share, otherwise this could not happen,” said RL.
“What’s the deal?”
“Let me give you the short version,” RL said. “The truckers have to carry more than the legally mandated load. Otherwise it would be too costly per ton. To get around the legal limit, you have to bribe the RTO — the road transportation officials. There are many check points along the route. It helps that the bribe is collected at one point and that too for the entire month. Otherwise it would take too long. Anyway, the collections are passed on to various people, all the way to the top. Government ministers and other bureaucrats, you know. But this scheme works only because there are other interests tied to it.”
“Like what?”
Any member who has personal stories of corruption, please feel free to contribute.
http://www.deeshaa.org/2009/09/26/of-trucks-and-roads-and-corruption/
Of Trucks and Roads and Corruption
26 September 2009 3 Comments
Let me tell you a story. It’s a vignette of what I consider to be important although it may appear to be rather trivial. Perhaps its apparent triviality is what should astonish us. But allow me to first recount a conversation I had the last week.
A close friend of mine was visiting me one evening. Let me preserve his identity by just identifying him as RL. I have known RL since the first grade. Born to a Marwari business family, RL has done reasonably well in business. I asked how things were with his business of arranging trucking services all over India. “Same old, same old,” says RL.
“Tell me more,” says I. “You were talking to someone on the phone just now and you said ‘890′. What was that about?” I asked.
“That’s the price that I was negotiating for transporting one metric tonne of goods between Mumbai and Raipur,” replied RL.
I had no idea of how this truck transportation business works. For no particular reason I inquired further.
“So how many metric tons does a truck normally carry?” I asked.
“About 35 tons,” RL said. “But that’s above the allowed limit. The limit for the average two-axle truck is only 16 tons. But if you stick to that, the numbers don’t work out.”
“So you mean to say that the trucks are overloaded?” I said.
“Of course. At the allowed 16 tons max, it would cost 1200 rupees per ton to move material. So we just pile on whatever to break even. It’s a competitive market,” said RL.
“But then aren’t there checkpoints along the route? Don’t they figure out that the trucks are overloaded? Are there weighing stations where the trucks are weighed to see that they are within the limits?” I asked.
“Yes of course. There are many RTO checkpoints. The deal is simple. Every month, for each truck, there’s a schedule of payments. Say between Mumbai and Raipur, the rate is Rs 20,000. Once you pay that for a truck, you are free to load the truck to whatever the truck will bear, never mind the legal limit,” RL said.
“And how many trips does that cover?”
“About 5 round trips a month. On an average it takes three days each way. Works out to about Rs 2,000 per transit. But it allows you to keep the costs down and therefore it works out for all concerned,” says RL. “It’s routine stuff. Once you pay the 20,000 rupees, there are not more hassles. You only pay at one central location and the money is divvied up among the various stakeholder along the way,” replied RL.
“And who are the stakeholders?” I ask.
“You know, everyone. All the way up to the concerned state and central government ministers. There is a regular schedule.”
“Wow! That’s really neatly done. So even the top politician must be getting his cut,” I said.
“Naturally. It would not happen otherwise. Everyone has to have his share, otherwise this could not happen,” said RL.
“What’s the deal?”
“Let me give you the short version,” RL said. “The truckers have to carry more than the legally mandated load. Otherwise it would be too costly per ton. To get around the legal limit, you have to bribe the RTO — the road transportation officials. There are many check points along the route. It helps that the bribe is collected at one point and that too for the entire month. Otherwise it would take too long. Anyway, the collections are passed on to various people, all the way to the top. Government ministers and other bureaucrats, you know. But this scheme works only because there are other interests tied to it.”
“Like what?”