Toll gate cess shocker for passengers

P Hareesh / TNN / Jan 14, 2006, 01:22 IST

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AP State Road Transport Corporation is planning to transfer the load of toll gate charges to passengers.

HYDERABAD: To tide over the financial burden, the AP State Road Transport Corporation (APSRTC) is planning to transfer the load of toll gate charges to passengers.
There are 14 toll gates across the state highways��including the toll plazas on the Golden Quadrilateral��and the RTC is incurring an expenditure of Rs 2 crore every year on paying toll tax at these gates.
Exemption of RTC buses from toll tax has long been a demand of the employees' unions and a proposal to this respect has been put up by the management before the government. All government vehicles, including the buses owned by the tourism department, are exempted from toll tax.
"It is proposed that the burden is passed on to the passengers to some extent. We are planning to charge an additional 50 paise per passenger travelling in ordinary buses and Rs 2 on luxury buses running on the toll plaza routes," APSRTC officials said.

However, the officials are not sure of the additional amount they could generate through the additional charges. Meanwhile, a hike in the RTC bus fare is likely to take place after February this year. The last hike was in February 2003.
Losses over the past couple of years, frequent hike in diesel prices, government's delay in extending financial assistance and the banks' reluctance to extend loans without any guarantee is apparently forcing the management think about a fresh hike to bail the corporation out of financial stasis.

While the diesel price during the last hike was Rs 21 per litre, presently it costs around Rs 34. According to sources, the management is proposing to hike the fares in all its services��both ordinary and luxury fleets.
The two successive diesel price hikes in 2005 is said to have burdened the corporation by Rs 164 crore. When contacted, APSRTC chairman G Prakash Rao, who will be back on duty on February 2, said the issue would be discussed with senior officials of the corporation after he comes back.
"There is an immediate need of hiking bus fares and a decision will be taken after discussions with the board of directors and employees' union representatives," Prakash Rao said.

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