The Andhra Pradesh State Road Transport Corporation (APSRTC) needs immediate financial assistance from the government to come out of losses. The accumulated losses of the corporation have been put at ₹6,445 crore.

The earnings of the corporation was about ₹.5,995 crore and the expenditure during 2018-19 was around ₹7,025 crore.

APSRTC has been suffering huge losses due to hike in diesel prices, losses due to Telugu Velugu, taxes and no change in fares for the last three-and-a-half years, said corporation Vice-Chairman and Managing Director N.V. Surendra Babu.

However, the MD refused to talk on the illegal stage carriers and other unauthorised operations in the State, which were one of the reasons for RTC losses.

Addressing a press conference on Friday, Mr. Babu said the corporation, which had spent about ₹1,426 crore on High Speed Diesel (HSD) during 2015-16, paid ₹2,074 crore during 2018-19. “The corporation is suffering huge losses due to Telugu Velugu buses, city buses, HSD prices and for not increasing the fares for the last few years,” he said.

APSRTC, which revised the fares in October, 2015, had not increased the fares though diesel prices were increased several times in the last four years.

Occupancy ratio

The Occupancy Ratio (OR) in APSRTC during 2018-19 was about 78%, and compared to the RTC in Telangana, Karnataka, Maharashtra and Gujarat, the occupancy ratio, earnings per bus, earnings per kilometre and other aspects, Andhra Pradesh was in a good position.

“We are running 5,789 Telugu Velugu buses, and the company has incurred ₹750 crore losses on these services. The budget allocation need to be revised from the government to save RTC from losses,” the MD said.

Asked about retrenchment of staff, Mr. Babu said the corporation was not removing employees from any section, but was adjusting as per the requirement. The company was taking many steps for the welfare of the employees, he said.

“Waiver of Motor Vehicle tax, compension of losses on Telugu Velugu buses, fare adjustment on annual basis and financial assistance on replacement of buses can save the company from losses. The corporation requires ₹666 crore for replacement of 1000 buses,” the MD said.

Ready for talks

Asked about strike notices services by the employees’ unions, Mr. Babu said the doors were always open for the staff for discussions and the management would make all efforts to prevent strike in RTC.