HYDERABAD: The Indian Institute of Management, Bangalore, has recommended a hike in Andhra Pradesh State Road Transport Corporation (APSRTC) bus fares and reducing the bus-staff ratio (BSR) in order to improve its financial health placing the Government in a bind.

The Congress Government had promised that it would not hike bus fares on several occasions.

But, the strike by employees unions forced it to commission a study by the Indian Institute of Management (IIM), Bangalore, on putting back the corporation on the road to recovery following losses.

Implications

The recommendation to reduce the BSR from the present 6.5 to 5.5 will result have its impact on the staff strength considering that the APSRTC operates 19,000 buses.

The IIM, in its preliminary report, has recommended re-location of about 30 depots, making a clear division between the operational and commercial functions of the corporation and running the courier and goods transport operations instead of outsourcing them.

Concerned over the political fall-out of accepting the IIM's recommendations, a team of three Ministers and top transport officials rushed to Bangalore to meet experts. This has drawn flak from employees unions.

Team members

Before leaving for Bangalore, the three Ministers -- Kanna Lakshminarayana (Transport), Konathala Ramakrishna (Commercial Taxes) and Jakkampudi Ramamohana Rao (Roads and Buildings) -- met the Chief Minister and discussed the IIM report.

APSRTC Chairman Gone Prakash Rao, Principal Secretary, Transport, Roads and Buildings, A.K. Tigidi, and Managing Director, M.V. Krishna Rao, accompanied them.

Reacting to the Ministers' dash to Bangalore, B. Rama Rao of the APSRTC Employees Union said it was unfortunate that a Rs. 35-lakh contract for a study was given without furnishing even the terms of reference.

"Normally, a consultant would come here to submit the report. In this case a high-level team has rushed to Bangalore. Something is definitely fishy", he said.

B. Nageswara Rao of the Transport Mazdoor Sangh said: "We can only think that the high-level team from Andhra Pradesh is trying to influence the experts and getting them to modify their preliminary report in favour of the Government," he said.

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