#Bangalore Metropolitan Transport Corporation (BMTC) to raise Rs 235 crore through 15% bus fare hike

BMTC has made all efforts to improve performance parameters in the organization during 2013-14.  There is increase in fleet utilization and the percentage of cancellation has been brought down from 5.5% to 4.5%.  The efforts of BMTC officials has resulted in substantial increase of traffic revenue by Rs.240.00 Crore which amounts to an increase of 16% over last year traffic revenue.

 Although the growth in revenue side is 16%, due to unprecedented increase in prices of diesel as well as staff cost has brought heavy expenditure.  The total expenditure has increased by more than Rs.300.00 Crore. The major increase is Rs.140.00 Crore due to diesel prices and increase of around Rs.100.00 Crore on staff cost.  This unprecedented increase in diesel prices and staff cost as well as other consumables has forced BMTC in losses.  Although the final balance sheet is under preparation, the losses for the year 2013-14 may be in the range of Rs.130-140 Crore.

 In addition to this, there is going to be further increase in diesel prices in the coming months as well as increase in Dearness Allowance.  BMTC has to increase its revenue by more than Rs.300.00 Crore during the financial year 2014-15 to cover the losses of 2013-14 as well as to take care of future increase in the cost of operation.  Keeping all these factors in view, the BMTC is increasing its fare by overall 15%.  The increase may vary little bit in different stages.  This increase of overall 15% will bring additional revenue of roughly Rs.235.00 Crore.  The balance increase of Rs.60-65 Crore will be achieved through ongoing process of route rationalization and by improving performance parameters.

Reaction to this new fare hike by BMTC:-

“BMTC is already the costliest public bus transport system in the country. People are struggling to make ends meet and have been demanding that the fares be brought down. BMTC claims that its losses have increased. We demand that a CAG audit be undertaken immediately to assess BMTC’s finances,” said Vinay Srinivas of the Bangalore Bus Prayaanikara Vadike