Will hike in prices of RTC city services make losses go away?

The RTC’s city services in the Greater Hyderabad Zone are the major loss-making ones owing to the high operational costs, in addition to traffic.
Workers of the Congress party take out a rally in Khammam town in protest against hike in bus fares.
Workers of the Congress party take out a rally in Khammam town in protest against hike in bus fares.

HYDERABAD:  The RTC’s city services in the Greater Hyderabad Zone are the major loss-making ones owing to the high operational costs, in addition to traffic. These will see additional revenue of Rs 71 lakhs per day with the new fare structure.

This, however, will not help the zone cover its losses. According to TSRTC executive director for the Greater Hyderabad Zone, the monthly earnings — with roughly 30 lakh ticket sales and bus passes — is Rs 95 crores.

This is an offset against the expenses of Rs 145 crores, eventually resulting in Rs 45 to Rs 50 crore of losses.

However, with the new hike, the RTC is set to make Rs 71 lakhs per day, which will translate to Rs 27 crores per month. The loss will thus be Rs 18 crores a month, regardless of the hike.

The city routes are more loss-making than others because the staff are paid more HRA and additional bonuses. The traffic also adds to higher diesel costs, though the vehicle just runs for 120-130 odd kilometers.

The additional revenue is to come, provided the patronage does not shift to other modes of travel owing to 55 days of strike and price hike.

Officials also said that with base fare of ordinary buses increasing from Rs 5 to Rs 10, the short distance commuters may shift to autos etc, reducing the collections.

TSRTC staffers get September salary as promised by KCR After a wait of 60 days, the TSRTC employees received their salaries for the month of September on Monday. 

The salary, which was supposed to be paid by October 1, came in on Monday as part of the Rs 100 crore grant given by Chief Minister K Chandrasekhar Rao last week.

Though the wage bill of the RTC is Rs 250 crores a month, the government will only pay the net payable for now. It will defer payment of provident fund and other benefits.

HC dismisses PIL filed by Vishweshwar Rao
Hyderabad:
Stating that the Telangana government has conceded several demands of the TSRTC employees, a division bench of the High Court on Monday dismissed the PIL filed by Prof PL Vishweshwar Rao against the alleged suicides and heart attacks among the workers during the period of the strike. Reminiscing the words of Shakesphere, the bench said “All is well, that ends well.”

When the matter came up for hearing, Prof Vishweshwar Rao, appearing as party-in-person, said that the government was adamant in the beginning and did not pay heed to the court’s directions.

But now, it has called on the workmen and held talks with them without the trade unions, he said. The State government is acting as per its convenience and its decisions are not in consonance with the Constitution, he argued.

However, the bench dismissed the  plea claiming that the government had done enough for the workers

How much you have to pay now

The general monthly bus passes will cost nearly Rs 180-Rs 195 more than the existing fares of Rs 770, Rs 880, Rs 990.

However, this will be less than what a commuter will pay up if they buy tickets daily, as every day, an additional Rs 5 for each trip up and down would mean an additional Rs 300.

The monthly pass will cut this by half. One would have to pay up to Rs 1,200 for the same (and is not preferred by many). The same holds true for student bus passes which will effectively reduce the burden of the hike.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com