The Hindu : Andhra Pradesh News : Fuel price hike adds to RTC's burden

Online edition of India's National Newspaper
Wednesday, Jun 22, 2005

Andhra Pradesh

Andhra Pradesh

Fuel price hike adds to RTC's burden

Staff Reporter

Will have to shell out Rs. 104 crores more now

RTC pays Rs. 110 crores a year towards interest on loans
Pays higher MV tax than other States

Highest expenditure is salaries

HYDERABAD: Monday's hike in prices of diesel has come as a rude shock to the State-owned Road Transport Corporation.

For a corporation which consumes an estimated 40 crore litres of high speed diesel every year, this means an additional burden of about Rs. 104 crores, the Vice-Chairman and Managing Director, M.V. Krishna Rao told The Hindu . Post-hike, it will now have to pay about Rs. 2.60 more per litre of diesel consumed, including taxes.

The Road Transport Corporation is already reeling under cash flow problems. It shoulders a burden of Rs. 1,400-odd crores of loans and pays about Rs. 110 crores every year on interest alone. Apart from the ever-increasing fuel prices, it also pays the highest motor vehicle (MV) tax compared to other States.

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