Running in losses, RTCs propose fare hike
Old buses, high taxation and illegal operators cited as main reasons for loss
Hyderabad: The State Road Transport Corporation has proposed a 10 per cent increase in bus fares to the newly-formed Telangana government. Informing the government on how the debt-ridden corporation can be made profitable, officials have said that the corporation incurs an expenditure of Rs 36.50 per km for its bus service, while the income is only Rs 31.
A team of corporation officials met Telangana transport minister Mahendar Reddy on Wednesday. The officials said that the public transport corporation was in debt and incurred losses to the tune of crores of rupees every day.
“The annual concession that is passed on to the passengers in the form of reduced bus fares comes to around Rs 500 crore. Unless the government releases these concessional funds on time every quarter, the corporation will sink into further losses as it has to to make payments on loans in the form of interest,” said a top official of the corporation.
Read: Proposal to hike bus fare rejected in Andhra Pradesh
Frequent breakdowns of poorly maintained buses, high taxation and illegal private operations are some of the other reasons that the officials cited for the daily loss.
The corporation has an accumulated loss of around Rs 2,000 crore.
Officials also sought to buy 800 new buses that can replace the old ones and provide better service to passengers. Officials said the transport corporation needed immediate aid from the government. Also it should get a special allocation in the upcoming state budget.
Reduction of tax on diesel, required reimbursement, etc., were some of the demands by the corporation. Otherwise, it will have no option but to increase bus fares, said officials. The Telangana Rashtra Samiti government has not taken any decision on the bus fare hike yet.