Following widespread protest from various political parties and commuters, the Andhra Pradesh government has marginally rolled back the hike in bus fares announced yesterday.
The RTC expected to get Rs 500-550 crore more annually on account of the revised fares. The corporation suffered losses to the tune of Rs 240 crore due to the recent agitations in the state. Also, it had to bear a financial burden of Rs 459 crore for implementing revised pay scales for its employees.
Earlier state transport minister Satrucharla Vijaya Ramaraju said the government was considering a roll back in the fare hike effected by the Andhra Pradesh State Road Transport Corporation citing mounting losses.
“Neither the minister, the principal secretary (transport) nor the chief minister were informed of the fare hike,'' he said after meeting chief minster K Rosaiah on Thursday.
Though APSRTC is autonomous, it should have discussed the matter with the government, he said adding that the fare hike proposal was not put up even before the RTC board of directors.
Meanwhile, RTC managing director SSP Yadav said in New Delhi, “How can we run the organisation sustaining losses.”
The costs have increased 36 per cent but the fare hike was 20 per cent, he said, adding that there was a government order that authorised the RTC board of directors to decide on fare hike. The corporation also did not receive any financial support from the state government despite plunging into losses, he said.