TSRTC suffers loss of Rs. 900 crore in April-July
Hyderabad: In the wake of the coronavirus pandemic, many sectors have been hit hard financially. In order to avoid mass gatherings during the deadly second wave of COVID-19, many people sought to travel with their own means of transport or by sharing trips by bus or public transport instead.
As a result, TSRTC suffered a loss of Rs. 900 crore during the period from April to July. Already, the company was making losses.
It should be noted that two years ago the state government increased Rs.0.20 paisa on one ticket for every mile. As a result, the company earned income of Rs.14 crore. During this period, TSRTC was able to control the losses.
However, losses have increased further over the past year and a half with the emergence of the coronavirus pandemic and the lockdowns that followed, which resulted in the confinement of buses at bus depots.
Apart from this, the company had to bear additional costs with the rising prices of petroleum products.
A TSRTC official said that during the first quarter of April to July of this fiscal year, the transport company suffered a loss of more than Rs 900 crore. Financial analysts have estimated an average loss of Rs. 225 crore each month, he said.
An official said the company has asked the state government to increase travel costs.
It was noted that in the past year, an additional burden of Rs 2million has been placed on the company with the rise in diesel prices. With the continuous rise in diesel prices, the company is unable to come out of losses.
Officials said that 3 or 4 months ago Rs 14 was the expense of a one-mile RTC, which has now risen to Rs 18. The use of biodiesel is also being considered to reduce losses.