RTCs keen on hike in bus fare
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While they’re paying extra for gas, COVID-19 has made commuters keep away from public transport
The upward trajectory of gas costs is crippling the already cash-strapped Road Transport Corporations in Karnataka. They are more likely to method the State authorities searching for revision in bus fares to compensate for the income loss.
Last yr, round this time, firms have been buying diesel at ₹62.51 per litre. Today, they’re paying round ₹76.22 per litre (bulk buy price), a rise of over 20% at a time when individuals, for probably the most half, are nonetheless avoiding public transport for worry of contracting COVID-19.
Due to poor ridership after the lockdown, RTCs have already incurred a lack of ₹2,500 crore.
Shivyogi C. Kalasad, Managing Director of KSRTC, mentioned, “A revision of bus fares is required to meet increasing operational cost. Moreover, the fares applicable for Bangalore Metropolitan Transport Corporation (BMTC) have not been revised for seven years. Last February, the Karnataka State Road Transport Corporation (KSRTC) was allowed to revise fares, but it has not made any significant change in revenue collection post-COVID-19.”
He added that the matter was broached with the Transport Minister. “It is still in the preliminary stage of discussion. We have not formally approached the government seeking a revision,” he mentioned.
All the 4 firms (KSRTC, BMTC, NEKRTC and NWKRTC) buy 48,960 kilolitres of diesel each month. “There has been a consistent increase in the price of fuel. We are paying 25% more compared to April 2020. After schools and colleges started re-opening, we have started running buses on almost all the routes, but ridership remains low,” mentioned Mr. Kalasad.
Burden of pupil passes
Another monetary burden is pupil passes. The authorities’s share in subsidised passes has lowered from 50% to 40% whereas that of scholars has come down from 25% to eight%.
“The respective corporations bear the rest of the cost. Over the last six years, cumulatively, ₹3,000 crore was due from the State government as its share for the subsidised passes. Of this, ₹1,500 crore was released to pay the staff after the outbreak of the pandemic,” he added.
Seeking rest
The Corporations have additionally sought concession from paying Motor Vehicle Tax. Every yr, they pay ₹300 crore. Another concession sought is on fee of gross sales tax on diesel that comes as much as round ₹500 crore.
(This is the primary of a three-part sequence on the impression of gas worth rise)
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