Despite the steep burden of Rs.715 crore a year due to hike in diesel price, the A. P. State Road Transport Corporation is not in favour of upward revision of bus fare for now.

Alternatively, it is looking at measures to improve internal efficiency parameters to curb losses and spare the commuters from the fare hike. “Increasing the fare will be our last resort,” said Mr. A. K. Khan, Vice-Chairman and Managing Director, APSRTC, here on Thursday after his meeting with the Chief Minister N. Kiran Kumar Reddy.

Mr. Khan said several proposals including procurement of diesel, increasing fuel efficiency and importantly bringing down VAT on diesel and motor vehicle tax were presented to the Chief Minister.

The RTC paid Rs.587 crore towards VAT and Rs.400 crore Motor Vehicle tax a year, Mr. Khan said later speaking to mediapersons. “We are studying the implementation of VAT, motor vehicle tax and also the functioning of State Road Transport Corporations in other States,” he said. RTC’s consumption of diesel was about 11 lakh litres a day. The depot Regional Managers would be free to choose the petrol bunks for procuring diesel depending on local conditions. Some States have a system in place to revise the fare as per the diesel price index, he said. The other proposals being explored by the RTC include feasibility of setting up its own bunks.

Mr. Khan said the Corporation was looking at earning revenue through its bus stations too and some of them were being converted to bus cum commercial complexes on BOT basis.