Rising Diesel Prices Hit RTCs; liabilities reached Rs 4,794 cr

Rising diesel prices amid sluggish income pushed liabilities of the four state-run Road Transport Companies (RTCs) to Rs 4,794.4 crore as the government eagerly awaits monetization of assets to support companies.

The issue was brought to Chief Minister Basavaraj Bommai during a meeting to review the Ministry of Transport’s implementation of the programs announced in the budget.

Officials told Bommai that the financial crisis, caused by the pandemic, has worsened since March, when diesel prices were raised by Rs 25 for bulk buyers.

RTCs are the lifeline of Karnataka’s public transport system.

Among the four RTCs, Bengaluru Metropolitan Transport Corporation (BMTC) has the highest amount of liabilities at Rs 1,448 crore, followed by KSRTC (Rs 1,211 crore), NWKRTC (Rs 1,187 crore) and KKRTC (Rs 947 crore). .9 crore).

“It has been communicated to the Chief Minister that the four companies require Rs 366 crore per month just to pay the salaries of the employees. The Chief Minister understood the situation and assured the department of all government assistance,” an official said. DH.

The state government, the officials pointed out, has provided financial assistance of Rs 3,161 crore to the four RTCs in the last two fiscal years.

“We were starting to see a recovery until March. However, rising fuel costs have pushed us into a corner. We are dependent on financial aid again,” said a senior RTC official. DH.

On a question, Transport Department Secretary NV Prasad said the government was awaiting the report of the one-man committee from Mr Sreenivasa Murthy.

“The Chief Minister has expressed his strong interest in reviving the RTCs and is looking forward to the report, which is expected to be submitted within the next two weeks,” Prasad said. DH.

The report is expected to examine the best ways to monetize the assets held by the four companies and ways to reduce expenses.

BMTC sources said the committee had been looking at the possibility of converting older diesel buses to CNG buses as part of an effort to cut expenses.

Comments are closed.