Fares may dip as taxis opt for CNG

The state government may go in for a cut in the taxi fare as almost all the taxis plying on Mumbai streets have now been converted to CNG, which is less expensive than petrol.

Though the final report on the issue from the transport commissioner office is being awaited, the government seems to have made up its mind to slash the rates.

Sources in the state transport ministry said, "The government may go in for a cut in the taxi fare. It can be to Rs 10 as the initial fare."

It is learnt that the transport office has to submit the report of the Taxi Fare Revision Committee to the government by May-end. The committee was formed one-and-a-half years ago under the chairmanship of transport commissioner Shyamsunder Shinde.

The Mumbai Taxi Association (MTA) has expressed its sharp reservation against any reduction in the present fare in the city.

In case of any fare cut, the association made it clear, if need arises, it might go on a strike. "It will be unfair to cut the fare. Depending on the reaction from our members, we will take the future course of action. And if need arises to go on a strike, the option will remain open," said Prem Singh, president, MTA.

Al Quadros, secretary, Bombay Taximen's Union, said, "We will oppose any such move and will approach the court of law.The government should not revise the fare."

He further said the government cannot revise the fare on the basis of this report as "it is based on only one factor "� difference in petrol and CNG prices. Other factors like cost of living, maintenance cost, insurance and other taxes are equally important, which this committee is not taking into account".

It all started with the consumer forum, Mumbai Grahak Samiti, having raised the issue that despite CNG being a cheaper fuel, there has been no cuts in the taxi fare. The Samiti suggested the minimum fare to be Rs 10. At present, 98 per cent of around 55,000 taxis plying on Mumbai roads are converted to CNG.

Singh said, "Taxis do not have any facilities. We do not have stands, parking areas and CNG stations in south Mumbai. We have to come to areas like Byculla and Mumbai Central. This exercise brings heavy losses as many times taxis travel empty to get the fuel." He added that, as there are no parking facilities, penalty by the traffic police is also a vexing problem. If these demands are met, we may reconsider the government's decision of fare revision."

In this regard, the association submitted a proposal to the transport commissioner last month.

The association has presented various other reasons in favour of not reducing the fare. Sources in the transport department said the Regional Transport Authority is the concerned body to review the fares.

In 1996, the Taxi Trade Enquiry Committee appointed by the state government had in its report suggested a revision of fare structure.

According to Quadros, this report was to be implemented only till August 2006. "Unless a new committee is formed which takes all the factors into account, we will not accept any fare revision by the government," he said.

The last fare restructuring was done in October 2000, when the fare was increased by Re 1 from Rs 12 to Rs 13.

"This revision was done on the basis of the rise in petrol's prices," said Quadros. At that time, only 12,000 taxis were CNG-driven, and it was only in 2003 that all the taxis got converted.