Telangana cabinet to clear increase in power tariff and RTC fares

HYDERABAD: Soon, electricity consumers and commuters of TSRTC may have to pay more as the state government is expected to clear the proposals on enhancing power charges and RTC bus fares in the next cabinet meeting. Chief minister K Chandrasekhar Rao, who held a review meeting on the RTC and electricity department, asked the officials to come up with proposals on enhancement of charges.
The government has not revised the electricity tariff in the last seven years after formation of the state. The power distribution companies generally submit their aggregate revenue requirement (ARR) to the Telangana State Electricity Regulatory Commission (TSERC) in November every year and any hike will come into effect from the next financial year.
But, the discoms may seek the permission of the TSERC to permit them to increase the tariff immediately. Both the Telangana Southern Power Distribution Company Limited and Telangana Northern Power Distribution Company Limited have been facing a huge revenue gap due to rising power cost and losing revenue towards power subsidies for agriculture and other sectors.
Senior RTC officials told the CM that the corporation was facing severe financial losses. Due to the pandemic and lockdowns, RTC’s losses touched Rs 3,000 crore in the past one year. While all the 97 depots are in losses, in Hyderabad alone, the losses swelled to Rs 90 crore a month.
Officials recalled the government had announced on the floor of the assembly in March 2020 that RTC fares would be hiked. “But, the fares have not been increased due to Covid-19. The diesel prices increased by Rs 22 in the past one year and as a result, the RTC is saddled with Rs 550 crore additional burden annually. Similarly, bus tyres and spare parts’ rates have also gone up. The overall additional burden is about Rs 600 crore for the corporation,” officials explained.
KCR said the government wanted to turn the corner for the RTC and began efforts in this regard two years ago but there was no improvement due to the pandemic, lockdowns and rising costs of fuel. He said the government would take every step to put RTC back on track. Ministers KT Rama Rao, Puvvada Ajay Kumar and G Jagadish Reddy, RTC chairman Bajireddy Govardhan, chief secretary Somesh Kumar and RTC MD VC Sajjanar were present.
Senior RTC officials told the CM that the corporation was facing severe financial losses. Due to the pandemic and lockdowns, RTC’s losses touched Rs 3,000 crore in the past one year. While all the 97 depots are in losses, in Hyderabad alone, the losses swelled to Rs 90 crore a month