KSRTC’s C’nagar division struggling to recover loss

S Ramesh
Mysuru: With the hike in fuel prices for bulk users by oil marketing companies, the state-run Karnataka State Road Transport Corporation (KSRTC) has been recording a Rs 10 lakh loss every day for the last three months. This has jolted the transport corporation which had been struggling to make up for the loss incurred during the pandemic.
The KSRTC, which used to make a profit during the wedding season starting from March to June every year, is now struggling to recover the loss.
The Chamarajanagar division, which has a fleet strength of over of 6,900 buses including interstate buses operating in different routes recorded a revenue collection of Rs 18.6 crore in May, but the division had spent Rs 19.9 crore including the purchase of diesel, salaries, pension, maintenance of the vehicles and other charges during the same month. The expenditures of the state-run corporation is increasing every month beyond its revenue generation.
The price of diesel for bulk users was Rs 88.7 per litre until the second week of March. The oil companies increased the prices for bulk users by Rs 25 per litre at one go during the same month and prices of diesel continue to increase. Now, the KSRTC is paying around Rs 130 per litre of diesel daily, which is bleeding the state-run corporation from the last three months, said sources.
Speaking to TOI, Chamarajanagar KSRTC divisional controller Srinivas said the division had always recorded profit during the wedding and festival seasons, but from the last three years, the state-run corporation struggling to recover the loss. “If this continues, the crisis will worsen further,” he said.
“Though the various state-run transport corporations had approached the apex court against the hike in prices of diesel for bulk users, the petition was not entertained. Government must provide subsidies to state transport corporations to allow them to continue their service or they must give permission to increase the ticket prices to make up for the loss,” said Umesh, Chamarajanagar Trade Union leader, told TOI.