RTC seeks government nod to hike bus fares

HYDERABAD: The Andhra Pradesh State Road Transport Corporation (APSRTC) is contemplating to seek clearance from the state government to hike bus fares as and when the prices of diesel goes up.Karnataka Transport Corporation has obtained such clearance from their state government.Citing this, the APSRTC also wants to plead with the state government to allow them to hike fares commensurate with the hike in prices of diesel.The APSRTC is facing severe financial crisis and its losses have touched Rs 2,700 crore mark apart from liabilities and bank loans.The reason for incurring huge losses was increase in employees’ salaries, maintenance cost and diesel prices.According to officials the diesel prices have increased 13 times in the last six years and that left a burden of Rs 550 crore on the stateowned corporation.When SSP Yadav was the vice-chairman and managing director of the APSRTC, bus fares have been hiked netting an additional revenue of Rs 550 crore.But at the same time the RTC has also hiked employees’ salaries as a result what it earned by hiking the fares compensated the hike in salaries. In 2011, the APSRTC had proposed to hike bus fares due to increase in diesel prices but the government restricted it to a very marginal hike. According to information oil companies were planning to hike diesel prices in the near future which has become a cause for worry for the RTC. There are 22,000 buses in the corporation and the diesel consumption is 5 crore litres per month costing about Rs 44.50 crore.The RTC officials expect Rs 1,000 crore gap between income and expenditure in the 2012-2013 budget, though bus occupancy ratio was 72 percent.One official said if the government gives the nod to hike the fares as and when there is a hike in diesel price, it would be major relief to the corporation.