CHENNAI: After nearly 24 years, the Tamil Nadu government has increased mini-bus fares, effective May 1. The new fare structure sets the minimum fare at Rs 4 for the first four kilometres and a maximum fare of Rs 10 for 20 kilometres. Previously, fares established in 2000 were Rs 2 for the first two kilometres and Rs 4.75 for 20 kilometres.
The mini-bus service, introduced in 1998 by the DMK government, aimed to enhance rural connectivity across districts. Mini-bus operators, however, have disregarded the government-fixed fares long back, citing viability concerns and currently charge a minimum of Rs 10 and a maximum of Rs 30.
Surprisingly, the revised fares have been announced only for the existing mini-bus scheme whose maximum distance is 20 km. The revised mini-bus scheme, set to launch in the coming months in Chennai and other parts of the state, extends the route length to 25 km.
Officials from the transport department could not be reached for comments.
According to a gazette notification issued by the Home Transport department, the revised fares are as follows: Rs 4 for the first 4 kilometers, Rs 5 for 4-6 km, Rs 6 for 6-8 km, Rs 7 for 8-10 km, Rs 8 for 10-12 km, Rs 9 for 12-18 km, and Rs 10 for up to 20 km.
The revised fare will come into effect on May 1st this year, according to an order issued by Home Secretary Dheeraj Kumar.
The bus operators said the transport department issued about 6,700 mini-bus permits in 1998, but only 2,900 are currently active with buses operating on 1,600 routes.
Mini-buses are allowed to operate up to 20 kilometers, with a maximum of 4 kilometers on routes served by government buses and the remaining 16 kilometers on unserved routes.
Last year, the Home (Transport) Department proposed a draft notification for the New Comprehensive Mini-Bus Scheme 2024, which aims to extend connectivity to more areas, including urban centers like Chennai and Coimbatore.
Under this scheme, operators will be allowed to run buses for up to 25 kilometers, with 17 kilometers on unserved routes and up to 8 kilometers on routes served by government or private buses.
Operators have expressed discontent with the revised fares, claiming that the scheme has been financially unviable since its inception in 1997 due to poor planning and execution.
One mini-bus operator stated, “Collecting the revised fares is nearly impossible due to the high operational and maintenance costs. In 2000, diesel was priced at Rs 15 to 16 a litre, whereas its current price has risen to Rs 97. Considering this steep increase, the minimum fare should have been revised to Rs 12-15.," said an operator on condition of anonymity.