RTCs get more desperate as pandemic hits non-fare revenues

Resuming operations after two months, Road Transport Corporations (RTCs) are not only staring down at low fares, but must also grapple with a steeper fall of non-fare revenue.

Karnataka State Road Transport Corporation (KSRTC) and Bangalore Metropolitan Transport Corporation (BMTC) officials said getting revenue from renting commercial complexes has become difficult during the pandemic.

The KSRTC has 1,400 stalls in its bus stations across 17 districts.

“Afte the pandemic outbreak, 372 stalls have been lying vacant. In addition to this, we have extended rental concession to many tenants in view of the lockdown. The concession cost Rs 37.71 crore to the corporation while the stalls lying vacant led to a loss of another Rs 90 lakh,” an official said.

The BMTC has about 400 commercial stalls of which 92 have been lying vacant. Officials said they are yet to estimate the revenue loss during the pandemic.

Skyrocketing diesel prices, the Covid pandemic and poor ridership are expected to cripple the corporations badly.

An official said the new prices will kick in once fuel procurement agreements are renewed, while prices of spare parts and other materials will also increase the burden. In April, the state government promised to increase the salary of the employees of the four RTCs by 8% as an interim measure to end the strike. The revision, once notified, will require an additional Rs 3,800 crore.