VIJAYAWADA: With the mounting
debt
and increased
operational expenses
by way of diesel prices and salary bills, the Andhra Pradesh State Road Transport Corporation (APSRTC) has been sailing in rough waters, with a hike in APSRTC
ticket prices
appearing to be imminent.
The reasons for the dismal performance of
APSRTC are quite obvious. While operational expenditure has gone up according to market conditions, earnings have remained static as the state run transport corporation did not increase its ticket prices since 2015 because of the state government. Diesel prices went up by 40 per cent during the same period, putting an extra burden of Rs 300 crore per year on the corporation.
Other maintenance costs too have gone up in the last four years, forcing APSRTC to opt for an additional debt for the purchase of new
buses
and to clear pending arrears. The debt burden has now reached Rs 3,500 crore, for which APSRTC is paying an interest of Rs 350 crore every year.
The recent 25 per cent hike in salaries to workers has added another Rs 760 crore to the burden on APSRTC, worsening its financial situation. While restricting APSRTC from increasing ticket prices, the state government did not extend necessary financial assistance as per the corporation’s requirment.
A senior official of APSRTC on condition of anonymity told TOI that they have been asking for budgetary allocations to clear the debt burden. We have sent proposals for Rs 3,700 crore budgetary allocations this year, but it was turned down by the government, claiming that this year the budget was only a vote on account budget, the official said.
APSRTC has been attempting various methods of cost cutting, which have drawn the ire of workers’ unions. The unions have been protesting against increasing the number of hired buses and recruiting people through outsourcing. The unions have been demanding for a
merger
of the corporation with the government, which was a part of TDP’s poll promise in the 2014 elections.
The situation has now reached a stage where APSRTC cannot function either by way of capital infusion from the government or by increasing ticket prices to an extent that would nullify operational losses, said another senior official. The present financial situation of APSRTC will serve an immediate challenge to the new government that will enter office after May 23.