India News | TN Daily Ridership in Govt Buses Rises While Loss Nears Pre-Covid Level, Says Minister

Chennai, Mar 29 (PTI) The daily ridership patronage in government buses, which stood at 1.21 crore per day in 2021-22 due to Covid-19, increased to 1.70 crore in 2022-23 per day while the State Transport Undertakings (STUs) are collectively incurring a loss of about Rs 452 crore, close to the sum during the pre-pandemic level, Minister for Transport S S Sivasankar said on Wednesday.

The STUs have been collectively incurring a loss of more than Rs 452 crore per month in 2022-23 (upto February) and this loss is almost equal to the pre-Covid level of Rs 436 crore in 2019-20, he said. However, salary hike was given to the employees due to 14th wage settlement, DA was increased in 2022-23 and also adopting cost control measures have brought down the losses to Rs 452 crore, he claimed.

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"STUs have been consistently performing to their optimal level in spite of heavy financial stress in the day-to-day functioning," a policy note on transport department tabled by the Minister in the Assembly, said.

In spite of soaring diesel prices, increase in interest cost for availing additional loans for working capital including salaries and statutory payments during and post Covid-19 period and now also, the STU have been collectively incurring a loss of more than Rs 452 crore per month in 2022-23, as on February.

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"Despite the financial crunch, the bus fares were maintained at January 2018 level because of bus transport being a service sector, transport corporations provide affordable service to people in rural and urban areas," he said. Also, salaries were being paid to the employees regularly during Covid period and post pandemic, he added.

Following the introduction of fare free travel to women in public buses, Tamil Nadu has joined the league of several global cities that offer free public transport to a specific socially targeted group. The impact of the scheme was assessed by the State Planning Commission recently and it concluded that on an average each woman passenger saved Rs 888 per month in lieu of travel fare. The State has 7,164 ordinary town buses and about 45.51 lakh women use the buses daily.

"So far, women have made more than 256.66 crore rides in buses under the scheme, which constitutes about 64.65 per cent of the total passengers travelling in ordinary fare town buses, earlier it was 40 per cent. Transgenders have made 14.66 lakh rides and differently-abled with 1.93 crore times and escorts of persons with disability with 10.02 lakh rides used the fare free travel buses".

Later during a discussion, the Minister, responding to a charge of opposition AIADMK legislator Arun Kumar, denied any move to privatise the State transport service. It has been proposed to allow private players in certain routes on Gross Cost Contract (GCC) model - on Public Private Partnership basis - to reduce upfront large capital expenditure cost to the STUs for procurement of buses, he said.

Also, advertisements would be permitted on government buses as part of a monetisation initiative, he said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)