Road Transport and Highways Minister Nitin Gadkari promised pan-India electronic toll system by December to address their concerns but ruled out complete scrapping of the toll system.
While talks with the government failed to stop the 'Chakka-Jam', the All India Motor Transport Congress (AIMTC) said essential services would be excluded from the strike, although another transporters' body AITWA decided to keep away completely from the action.
In a meeting with the AIMTC delegation, Road Transport and Highways Minister Nitin Gadkari promised pan-India electronic toll system by December to address their concerns but ruled out complete scrapping of the toll system.
"We are proceeding on strike. Electronic toll system offered by the Highways Minister is no solution as E-tolling project of the government is a failed concept... Even their pilot project has failed," AIMTC President Bhim Wadhwa told PTI after meeting Finance Minister Arun Jaitely.
"The partnering banks such as ICICI Bank and Axis Bank too have distanced itself from the project," he said.
Wadhwa said one of their demands included TDS provisions on transport trade to Pre-Finance Act 2015 and the Finance Minister assured them to call a meeting with CBDT Chairman in this regard.
"The strike is likely to cause Rs 1,500 crore (Rs 15 billion) losses to truckers and over Rs 10,000 crore (Rs 100 billion) loss to government on a daily basis," Wadhwa claimed.
On All India Transport Welfare Association (AITWA) keeping away from the strike, Wadhwa said AIMTC was the apex body and represented about 87 lakh trucks and 20 lakh buses and tempos.
AITWA President Pradeep Singhal said they will refrain from any strike. AIMTC has announced an indefinite nationwide strike from October 1 against the toll collection system, saying it has become a tool for corruption and harassment.
It has said that it is not against toll, but the collection system, and has demanded barrier-free movement of vehicles as well as one-time collection of taxes.
Earlier in the day, Gadkari appealed the AIMTC to call off the strike assuring an electronic toll collection system by December at all 325 toll plazas.
"I have assured the transporters to implement electronic toll system by December across about 325 toll plazas in the country to solve their demands of averting delays at such booths. I have also told them that the Centre will hold talks with state governments and extend this system free of cost to them," Gadkari said.
"One of the bodies (AITWA) has called off the strike while AIMTC delegation has gone to meet Finance Minister Arun Jaitley over the issue of their second demand of TDS," he had said.
Gadkari said it was not possible to scrap the toll system and the government has assured AIMTC that it would provide them a wide network of good roads with no delays after the electronic toll system in which toll will be collected electronically through chips fitted in the vehicles at toll plazas.
"I have also assured them that the government is serious to run electric vehicles on roads to minimise pollution and is serious to their problems. Government is positive to find out solutions to all their problems," he said.
The Indian Foundation of Transport Research and Training (IFTRT) said that AIMTC's suggestion to have fixed annual toll was not rational.
"AIMTC suggestion to have fixed annual toll fee of Rs 30,000 for a truck on national permit and Rs 10,000 for intrastate permit vehicle needs examination as proposal is highly flawed and irrational," Coordinator IFTRT SP Singh said.
Meanwhile, a state truckers body in Tamil Nadu said that nearly 6.55 lakh trucks will be off the roads from Thursday in response to the indefinite nationwide strike call given by AIMTC.
The Tamil Nadu Lorry Owners Federation treasurer Chennakesavan said no lorries would ply from 0600 hrs tomorrow and agents had already stopped booking of goods to northern states, he said, adding nearly one crore drivers and cleaners would be affected by the stir.
This can affect transport of essential commodities, vegetables and goods and also construction materials, among others.
The AIMTC has maintained it is ready to pay a higher toll, but that should be collected as indirect tax because of harassment by different agencies.