TSRTC officials told Chief Minister K. Chandrashekar Rao that the corporation’s losses were continuing due to the increase in price of diesel and the lockdown impact while it was still awaiting its dues being cleared.
They explained that if salaries of the corporation employees were increased, there would be a heavy financial burden on the TSRTC. They made it clear that unless the government extends major financial assistance to the RTC and ticket prices are raised, then the financial burden cannot be reduced.
The matter came up during a review meeting here on Thursday with transport minister Puvvada Ajay, Chief Secretary Somesh Kumar, principal secretaries Sunil Sharma (transport) and Ramakrishna Rao (finance), financial advisor Ramesh, cargo special officer Krishna Kanth and executive director Yadagiri.
“The last time when fares were increased, the price of diesel was Rs 67 per litre. It has increased by Rs 15. The RTC is not in a position to bear the burden if salaries are enhanced at this point in time. 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," officials explained.
They said that compared to the past, TSRTC's position is better, with help from the state government and several measures taken in the RTC, there is a qualitative change. Plying buses to Andhra Pradesh has been a wise move with occupancy rate at 58 per cent. “This is earning Rs 9 crore profit every day. But the increase in diesel rates is causing losses," they said.
Rao congratulated the officials as the cargo services had carried 17.72 lakh parcels and earned Rs 22.61 crore for the TSRTC and praised cargo services special officer Krishna Kanth.