The Hindu : Karnataka / Bangalore News : APSRTC fare hike likely

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Sunday, Jun 26, 2011
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Karnataka

Karnataka - Bangalore

APSRTC fare hike likely

Special Correspondent

HYDERABAD: Faced with the burden of Rs. 161 crore by way of an additional fuel bill caused by the hike in the price of diesel, the A.P. State Road Transport Corporation is planning to hike the bus fares or seek direct assistance from the Government to offset the loss.

Managing Director of RTC B. Prasada Rao said the nature of assistance from the government could be in the form of a reduction in the 22.4 per cent of Value Added Tax on diesel and in the motor vehicles tax.

Although an increase in fares is the most viable option, what makes the management hesitant is that the fares were raised only in January last by as much as 24 per cent. However, considering the political implications of the fare hike, the management is wary of the extent of increase that will be allowed by the government.

The corporation pays between Rs. 350-Rs. 400 crores annually as motor vehicles tax, leaving the State Government an option to reduce it considerably. However, there is no actual payment and the sum is adjusted in the books, against the reimbursement to the corporation on the concessions it extends to students and other sections of society.

At an estimated revenue of Rs. 14 crores a day, the corporation earns about Rs. 5,000 crore annually. About 40 to 42 per cent of this amount goes as salaries and cost of personnel, while the rest is accounted for by the operating costs.

“We have accumulated losses of about Rs. 1,900 crores. The losses grow each year – in 2009-10, it was Rs. 500 crore and in 2010-11, it was Rs. 300 crore. The 22,260 buses we operate consume about 55 crore litres of diesel a year,” Mr. Prasada Rao said.

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