Broke Himachal Roadways to buy 95 buses

In spite of being the most cash-strapped state-run company, Himachal Roadways is going ahead with its plan of adding 95 new buses to its existing fleet.

Himachal Roadways Transport Corporation (HRTC) is buying 52 and 42 seater buses from Tata and Ashok Leyland respectively, say officials. "The cost of these new buses will be about Rs 10 crore," said R N Negi, a senior HRTC official. Some of the old buses would be auctioned, he added.

In the near absence of rail and air services, travelling by road is the only means of communication in the hilly terrain of this state, resulting in high wear-and-tear.

The state roadways (HRTC) has a fleet of about 1700 buses. This is a reason why any ruling government is reluctant to raise fares, due to the fear of losing votes. Prices have not been raised for the last four years, even though diesel prices have gone up several times during this period.

According to one estimate, the accumulated losses of the HRTC touched Rs 375 crore, which is the highest among all state-run companies in Himachal Pradesh.

The state government had recently warned that unless the corporation cut costs on staff and buses it would not receive grants from the government.