Says move to set right the financial position of loss-making state transport corp and Aavin.
The Tamil Nadu government on Thursday announced a hike in bus fare and milk prices to set right the financial position of loss-making state-run transport corporations and Aavin. The decision was taken at a Cabinet meeting, which was chaired by chief minister J Jayalalithaa here.
The chief minister said the minimum bus fare would be hiked from Rs 2 to Rs 3 and the maximum from Rs 12 to Rs 14 in Chennai.
Increase in fares will also be applicable to those buses plying in other parts of the state.
“This was due to the increase in fuel price and to offset loss for the transport corporations,” she said.
In 2001, the diesel price was Rs 18.26 a litre, which has increased to Rs 43.95 now. Besides, cost of tyres, tubes and other components have increased substantially along with wage.
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All these have pushed the corporations into losses to tune of Rs 6,150 crore as on March 31, 2011. Jayalalithaa, while announcing a hike in the procurement price of milk, said Aavin cardholders, who at present pay Rs 17.75 per litre for processed milk, would now have to pay Rs 24.
“These decisions have been being taken because of the mismanagement of the previous DMK regime and the step-motherly treatment of the Centre towards Tamil Nadu,” she said, stating that the Centre had granted the West Bengal government Rs 21,614 crore, but had not given any financial assistance to the Tamil Nadu government.