RTCs seek Rs 335 cr to make up for losses

The four state road transport corporations (RTCs), whose proposal to hike student bus pass fare was rejected by the government, have now sought Rs 335 crore to compensate for losses.

The government had made a budgetary allocation of Rs 848 crore in the 2019-20 budget, against the demand of Rs 1,183 crore by the RTCs. The four corporations - KSRTC, BMTC, NEKRTC and NWKRTC - have reported losses and proposed hike in bus fare as well as pass fare. Over the last one year, RTCs have sought increase in travel fares ranging from 14.5% to 18%, citing rising operational costs.

However, as reported by DH earlier, it is not the lower fares, but the state government’s free pass schemes that have badly hurt the financial health of the RTCs. The government owes Rs 1,080 crore to the four corporations.

The government had recently set up a committee to come up with comprehensive measures to improve the financial condition of the RTCs.

The government bears 50% of the cost of the bus pass. The corporation and the students bear 25% each.

Students from SC/ST communities are exempted from the payment. However, the government’s contribution is less when compared to the neighbouring states, where there is no burden on corporations.