Chief Minister Sri K. Chandrashekar Rao regretted that the TSRTC has once again been in the losses and financial crisis due to an increase in the price of petrol and diesel. The CM said that two years back strong measures were initiated to put the RTC back on track from its losses and when it was about to be on the recovery path, the Corona pandemic and increase in petrol and diesel have once again pushed the Corporation into losses. However, the CM made it clear that the government would take all the required measures to make the RTC stand on its own again. The Transport Minister, the RTC Chairman, MD, and other higher officials requested the CM to help RTC to come out of its financial crisis when a High-level review meeting on Tuesday was held under the chairmanship of CM on the RTC situation at Pragathi Bhavan. The Transport Minister and RTC Officials said that the RTC was back into the financial crisis due to lockdown imposed during the Corona epidemic and the Centre increasing the prices of Petrol and diesel.
In this review meeting, IT and Municipal Administration Minister Sri KT Rama Rao, Transport Minister Sri Puvvada Ajay Kumar, Power Minister Sri Jagadish Reddy, RTC Chairman Sri Bajireddy Goverdhan, MLAs Sri Marri Janardhan Reddy, Sri Saidireddy, Chief Secretary Sri Somesh Kumar, CM Principal Secretary Sri S Narsing Rao, CM Secretary Sri Rajasekhar Reddy, RTC MD Sri VC Sajjanar, Special Chief Secretary (Transport) Sri Sunil Sarma, Special Chief Secretary Sri Ramakrishna Rao, Genco and Transco CMD Sri Devulapalli Prabhakar Rao and others participated.
The officials informed the CM that since diesel price increased by Rs 22 per litre in the last one and half years, RTC had to bear an additional loss of Rs 550 Crore. They said along with the increased diesel and petrol prices, the increase in the prices of tyres, tubes and other spare parts of the buses was also pushing RTC into losses. All these increased costs are putting Rs. 600 Crore additional burden on the Corporation, they said.
The officials said with the Corona Pandemic impact on one side and the increase in the price of petrol diesel and spare parts have doubled the adverse impact on the RTC financial situation. Against this backdrop, they said that the Corona Pandemic lockdown had resulted in the RTC losing Rs 3000 Crore revenue. In the Hyderabad zone alone the losses were about Rs 90 Crore per month, the officials explained to the CM. They said 97 Depots across the state were also running into losses. In these troubled times, there was no option but to increase the Bus ticket rates. In this context, the Ministers and RTC officials have explained to the CM the need to increase the bus fares.
They have also reminded the CM that the government had announced in the Legislative Assembly in March 2020 that the RTC bus fares would be increased but it did not implement the increase due to the Corona pandemic. They were upset that they are forced to come to the government once again seeking support and help despite the fact the government had already taking measures to strengthen the RTC and for the welfare of the RTC employees. They made it clear to the CM that a hike in bus fares was the only option for the RTC to come out of its financial crisis that occurred due to Corona and rise in diesel, petrol and spare parts prices, otherwise the very existence of the Corporation in jeopardy. They said besides increasing the bus fares, alternative sources of revenue have also to be explored. The CM said that the government would take all the required measures to support the RTC and asked the officials concerned to come out with a report with proposals to the next Cabinet. He said the proposals would be discussed in the Cabinet and decisions would be taken.
In this context, the CM discussed with Energy Minister Sri Jagadish Reddy and Genco, Transco CMD Sri Prabhakar Rao on the issue of electricity in the State. They said that like all other sectors, the electricity sector too in heavy losses due to the Corona pandemic. They said that the electricity charges have not been increased for the past six years and there was no option left but to increase them now to put the power sector back on track. The CM said that along with the RTC proposals, proposals for the Electricity department would also be discussed in the next Cabinet and a decision would be taken. The CM instructed the Transport and Energy Ministers to come with proposals to the next Cabinet.