Kerala state transport not to hike fares

If the government decides to forego the tax content on the additional price, the KSRTC will get a benefit of Rs 18 crore daily

Even as the Supreme Court ordered to cancel supply of subsidised diesel, Kerala has no plans to hike the public transport fares. This was indicated by transport minister Aryadan Mohamed.

The minister also said the next state cabinet meeting would consider the issue and take a suitable decision. If the government decides to forego the tax content on the additional price, the Kerala State Road Transport Corporation (KSRTC) will get a benefit of Rs 18 crore daily. Incremental hike in diesel in the last six months has caused an additional burden of Rs 18-20 crore per month on KSRTC.

Going by the Supreme Court verdict, the corporation now has to pay Rs 71.50 for a litre of diesel, thereby leading to an additional outgo of Rs 22 crore each day. This will, therefore, increase its monthly loss to more than Rs 100 crore. The corporation needs 450,000 litres diesel every day.

Though the oil distributing companies had withdrawn the subsidy on diesel, considering the corporation as a bulk consumer in January, the Kerala high court had directed oil companies to dispense diesel at a subsidised rate. However, the apex court cancelled the interim order of the high court. Since January this year, the corporation had started withdrawing operations on unviable routes.

And now with the non-supply of subsidised diesel, the KSRTC might stop at least 2,000 schedules across the state. It has planned to stop all services that earn a daily collection below Rs 7,000 as the average per bus daily expense on diesel alone comes to Rs 5,200 from the earlier Rs 3,400.

The corporation's monthly losses rose to Rs 54 crore during the last six-month period as against a loss of Rs 45 crore it registered in January this year. Though the state government extended Rs 28 crore as an urgent financial aid, the increase in working costs coupled with the huge revenue loss had led to a deep crisis.

A KSRTC senior official said the average daily loss in each office in July was Rs 2 lakh. It has 87 such offices, including 24 depots, 45 sub-depots and 18 operating centres. Hike in diesel price, increase in maintenance and repair cost, salary and pension are the main reasons for cost escalation.

The average daily collection dropped to Rs 4.21 crore in July from Rs 4.67 crore, six months ago mainly due to a drop in number of services. Average earnings per kilometre too decreased to Rs 27.89 in July from Rs 30.83 in January.