Bengaluru: The Rs 100-crore subsidy announced by the state government for the BMTC was released on Wednesday to help the transport undertaking clear its dues to the employees. It also plans to use the money to revamp its ageing fleet.
BMTC has been incurring losses as Namma Metro has increased its reach and frequency and ride hailing cabs have become popular among commuters. Its recent proposal to increase fares was rejected by the government.
"With an existing ridership of 50 lakh passenger per day, BMTC should meet the projected demand to maintain the current market share. But in the recent days, we had to pay dues to retired employees and to the next of kin of employees who died in service. So finally the amount has been released and this will be utilized in a good manner," a senior official of BMTC told Deccan Chronicle.
In the year 2017-18 BMTC witnessed 38 deaths of employees and 127 retirements, and it has to clear Rs 65 lakh as dues to various hospitals. The corporation also has to clear dues related to student bus passes.
"The rise in diesel prices amidst falling revenue has been worrying top officials, whose proposal for a fare hike was rejected by the government recently. The amount promised by the government has received so it will be used well," official added.
Of the 3,000 new buses announced for BMTC in the previous two budgets, only 1,500 have begun operation. The remaining was to be purchased from the funds the government was expected to release.
