Free, concessional travel costing cash-strapped HRTC Rs 50 L daily
The Himachal Road Transport Corporation (HRTC) loses Rs 50 lakh a day or Rs 15 crore a month by offering free and concessional travel to commuters of 27 categories. It’s a major revenue drain for the cash-strapped corporation, which completed 50 years of its existence a few weeks ago.
“We are streamlining our operations to cut down costs and enhance revenue,” said HRTC Managing Director Rohan Chand Thakur. “Compared to the first six months of the last financial year, we have earned Rs 55 crore more, an increase of 15 per cent. We have managed this through setting tough targets, route analysis, constant monitoring and reviews, starting new routes and curtailing a few, etc,” he added.
At present, the HRTC is losing Rs 25 per km, while private players are earning around Rs 10 per km. “Our per km cost is around Rs 65 to Rs 70. It includes Rs 27 on diesel, Rs 29 on the salary of the driver and the conductor, Rs 10 on the repayment of loan taken to buy a bus and some amount on repair, etc. The cost for a private operator is nearly the same under all heads except the staff salary. The private operator pays just Rs 8 as against Rs 29 paid by the HRTC as salary to the drivers and conductors,” said Thakur. He added that private operators ply only on profitable routes while the HRTC was plying buses even on loss-making routes to cater to the needs of people and areas.
The MD said that the HRTC was offering two-three times higher salary than the private operators to its staff. “Our terrain is tough and we need highly skillful staff to run buses safely on these roads. By offering higher salaries than the market rate, we intend to attract the best talent,” he added.
The state government’s plan to shift to electric buses from diesel buses can substantially reduce the per km cost for the HRTC. While the per kilometre diesel cost is around Rs 27 to Rs 28, the corresponding cost in electric buses will be just Rs 6. “We will save Rs 22 per km in an electric bus. Besides, the impact on our environment will also be positive,” he added.
