JOIN USFor the BMTC, struggling with cumulative losses of Rs 608 crore, the budget allocation of Rs 100 crore has come as a breather, though much needs to be done if the government hopes to help the corporation.
The Bangalore Metropolitan Transport Corporation (BMTC) has suffered major blows as decreasing revenue and ridership have been dragging it into losses year on year. Except for the 2017-18 budget's promise of funds for buying 1,500 buses and leasing 1,500 more, the corporation has not got much attention from the government in the recent years.
Senior officials in the BMTC welcomed the allocation.
"It will not solve all the problems as our financial prospects need a greater push. But the gesture shows that the government has recognised the problem. We have also requested the motor vehicle tax to be waived," he said.
The corporation paid Rs 982 crore as motor vehicle tax in 2016-17, which has only gone up in the following years. It is estimated that the BMTC pays Rs 17 crore interest annually on loans taken to build traffic transit management centres (TTMCs) and buses.
Over the past few months, the spike in diesel prices amid falling revenue has further worried the officials, whose proposal for a fare hike was recently rejected by the government.
Chief Minister H D Kumaraswamy's budget also mentions that the four transport corporations will add 4,236 new buses this year, of which 80 will be electric buses to be inducted into the BMTC with the aid from the Centre.
New buses
| BMTC | 1,625 |
| NEKRTC | 1,160 |
| KSRTC | 801 |
| NWKRTC | 650 |