The Bangalore Metropolitan Transport Corporation (BMTC) has effected up to a 16 per cent hike in the fares of ordinary services from Saturday midnight.
With the hike, the cheapest ticket is now Rs. 6 — up from Rs. 5 — and the costliest, Rs. 24, up from Rs. 21. The BMTC increased the rates of daily passes from May 11 by Rs. 10, and monthly passes by Rs. 100 with effect from June 1. However, it has not increased the fares for its air-conditioned services such as AC Suvarna, AC Carona, Vajra and Vayu Vajra as they were hiked recently.
BMTC managing director Anjum Parvez told The Hindu the corporation had incurred a loss of Rs. 147 crore in the last six months owing to the hike in diesel prices, increase in DA for employees and increase in cost of other inputs. Had the fares not been hiked, it would have to bear an additional burden of Rs. 254 crore a year, making operations unviable.
Even after the hike, which is expected to fetch about Rs. 202 crore year, there would be a deficit of Rs. 52 crore. The BMTC hopes to cover this with increased operational efficiency.
Asked why the BMTC did not urge the government to subsidise the cost of operations, Mr. Parvez said all the four road transport corporations in the State were functioning on their own strength and subsidies would affect operational efficiency.