The APSRTC has incurred a loss of Rs. 2.25 crore in one and half years after it had launched the Bus Rapid Transit System (BRTS) project in January last year.
The RTC is unable to recoup from the situation though it has made a major deviation in the BRTS corridor route on the plea that the it was making losses. The original plan of
of circular route—city terminus to city terminus covering Bandar and Eluru roads was shelved, and the RTC authorities extended the BRTS bus services up to Kankipadu, snapping the services on Bandar Road. Now, It is plying BRTS busses up to Machilipatnam to cover the losses.
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Notwithstanding, the Earnings Per Kilometre (EPM) is hovering around Rs. 25.66 and occupancy ratio at 83 per cent, the RTC is incurring a loss of Rs.12 lakh to Rs. 13 lakh per month on the BRTS buses, said RTC Regional Manager Suresh Kumar.
In initial days, the EPM was mere Rs. 16, and the occupancy also did not cross 50 per cent. The EPM improved after the route was modified and extended up to Kankipadu.
Vijayawada Municipal Corporation (VMC) officials, when toyed with the idea of BRTS project, designed the circular route (in phase-I) of 15.5 km to discourage private vehicles on Bandar and Eluru roads, ease traffic snarls on these busy roads, and provide connectivity to commercial areas like Besant Road.
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After plying the buses for 45 days, the RTC officials calculated that they incurred a loss of Rs. 30 lakh . Placing the issue before the panel chaired by the Collector, the officials said the route was not viable and would force the RTC into losses.