COIMBATORE: While Tamil Nadu State Transport Corporation’s (TNSTC) financial woes are common knowledge, the recent hike in fuel price has dealt a further blow to the corporation that is already down to its knees. With diesel priced at Rs 72.91 a litre, the operation cost of TNSTC rose to Rs 45 per km (Rs 13 for fuel) from the Rs 34 per (Rs 9 for fuel) km on January 1.
As on January 1, the price for the diesel was Rs 62.90 per litre. On January 10, the day the Tamil Nadu government hiked the fare for buses to Rs 63.09. With the nation-wide hike on May 27, the price reached Rs 72.91, marking an increase by `10 in a mere five months. This translated to Coimbatore Division of TNSTC spending Rs 5 crore more on fuel expense a month; while it had been Rs 25 crore before the slew of hikes, it now stood at Rs 30 crore.
The Division’s operations, on an average, required 2.5 lakh litre of diesel a day. An official source at the Division remarked that with the government stopping fuel subsidy after the bus fare hike, the corporation was robbed of Rs 7 crore funding, adding to their woes.
“As the State government, in an effort to retrieve the corporation from its financial crisis, introduced the bus fare hike alongside removing fuel subsidy, there was little benefit for the TNSTC. It only increased the operating cost by Rs 60 lakh per day,” the source added. After the fare hike, revenue to the Division increased to Rs 3.25 crore per day from Rs 2.50 crore. However, operating cost stood at Rs 3.85 crore per day.
Meanwhile, unionists allege that the corporation was quietly cutting short the trip along every bus route to rein in operational costs. K Periyaswami, zonal president of Labour Progressive Federation (LPF), said, “Increasing diesel price has put a burden on the public’s shoulder as the corporation has silently been implementing trip cuts in every route. The total number of trips has been reduced to 12 from 16 per day.”
While city buses began work from the depot at 4.30 am earlier, it is now 6.30 am. Moffusil and corporation buses switch to private model of operating during rush hour. Meanwhile, drivers are being forced to maintain the kilometre per litre (KMPL, 6 km per litre), irrespective of the condition of the bus or the route, he alleged.
Fuel not the only concern
Namakkal/Dharmapuri: The govt should allot sufficient funds to restructure TNSTC during the Assembly session, said TNSTC trade union functionaries. Unions have been demanding this for long, but it has not done so. It is trying to reduce losses by increasing fares, they said. However, TNSTC officials here are not very hopeful about the government allotting funds for restructuring the organisation. “Chances of fund allotment are very remote,” said an official. Meanwhile, the demand to upgrade all TNSTC buses in State was also strong among staff. Over 65 per cent of State-owned buses in operation were condemned and posed a threat to safety of passengers, the Tamil Nadu AITUC State Transport Workers’ Federation said