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Telangana’s cash-strapped road transport corporation seeks financial assistance from govt

On Thursday, RTC authorities informed CM K Chandrasekhar Rao that unless the government extended major financial assistance to the Corporation and ticket fares were increased, the financial burden on it cannot be reduced.

By: Express Web Desk | Hyderabad |
January 22, 2021 3:16:41 pm
The RTC, through its recently initiated cargo services, has transported 17.72 lakh parcels to various destinations and earned Rs 22.61 crore. (Express photo/Representational)

Cash-strapped Telangana State Road Transport Corporation (TSRTC), facing continued losses on account of rising diesel prices and the pandemic-induced lockdown, sought financial assistance from the government to offload the burden.

On Thursday, RTC authorities informed Chief Minister K Chandrasekhar Rao that unless the government extended major financial assistance to the Corporation and ticket fares were increased, the financial burden on it cannot be reduced. According to them, if the salaries of employees and staff are increased, that would further add to the financial burden on the Corporation. They expressed their concerns during a review meeting held by the CM.

“Last time when the ticket prices were increased the diesel price was Rs 67 per litre. But within a short time, the diesel price increased by Rs 15 per litre. This had a very adverse impact on TSRTC and increased the financial burden. The TSRTC incurred losses due to the lockdown imposed due to the Coronavirus pandemic,” they said, adding that there is an existing burden of dues as well.

According to them, these were circumstances under which the salaries of the employees in RTC are to be increased. “If the salaries are increased then it would be more burden on the RTC. TSRTC is not in a position to bear that burden. Hence, the state government should extend more financial assistance. Bus fares should be increased. Unless these two measures are taken, RTC will not be able to come out of the crisis,” the officials explained to the CM.

Transport minister Puvvada Ajaykumar, chief secretary Somesh Kumar, and other officials were present at the meeting.

However, they said, compared to the past the TSRTC is in a better position now. “Plying buses to Andhra Pradesh has yielded a good result. The occupancy rate went up to 58 percent and is gradually increasing. This is getting Rs 9 Crore profit every day. The situation will be much better in the days to come. But the increase in diesel rates is causing losses to the RTC,” they said.

The RTC, through its recently initiated cargo services, has transported 17.72 lakh parcels to various destinations and earned Rs 22.61 Crore.

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