MSRTC to introduce maxicabs

MUMBAI, June 14: In what could be a body blow to the sagging fortunes of the Maharashtra State Road Transport Corporation MSRTC, the st...

MUMBAI, June 14: In what could be a body blow to the sagging fortunes of the Maharashtra State Road Transport Corporation MSRTC, the state government has decided to introduce maxicabs on the state8217;s roads.

The government is likely to amend the Maharashtra Motor Vehicle Act 1989 shortly, which will pave the road for the introduction of these cabs. At least 5,000 maxicabs are expected to roll on the state8217;s roads within two months. Presently, State Transport ST buses enjoy a legal monopoly over passenger traffic on Maharashtra8217;s roads.

According to sources, Transport Secretary Suresh Chandra discussed the issue at a meeting at the Central Institute of Road Transport at Pune on June 5 with automobile manufacturers. 8220;The manufacturers claim to have the capacity to build the cabs with the required specifications within four weeks,8221; said an official.

The specifications include a maximum capacity of 12 seats with a gangway in between. The state government notification on May 13 also states that the cab will have five doors with an emergency exit, and all the seats would face the driver. The notification has also empowered the driver to fix the minimum fare for each route, which will be within a revenue district. The contract licence would be valid for a period of 10 years.

Already reeling under the impact of jeeps and 10-seater cars taking passengers illegally, MSRTC stands to lose nearly 35 per cent of its income with this move. 8220;It is likely to take away around Rs 600 crore from our already depleted earnings,8221; said an official of the corporation.

But what has really vexed the corporation is the taxation system that the government plans to implement. MSRTC officials claim that these cabs are to be charged at a rate of Rs 900 per seat, while their buses have to shell out Rs 36,000 per seat. 8220;Even if we suppose that five maxicabs is equal to one bus, why does the government want to lose nearly Rs 1.5 lakh a year,8221; wondered an MSRTC officer.

The corporation feels that since profit will drive the cabbies, MSRTC will be left trundling on the non-profitable routes. 8220;We will end up being a purely social organisation, but paying the highest taxes in the state,8221; rued an officer. Figures indicate that MSRTC loses nearly Rs 120 crore as concessions to the state government.

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But transport ministry officials believe that the corporation is in the red purely due to poor management and bad service. 8220;We cannot continue to be a silent spectator to the public being given a raw deal,8221; said an official.