AP State Road Transport Corporation (APSTRC), which has incurred Rs. 600 crore of loss in the year 2016, is going to cover the loss by concentrating on generating non-ticket revenue, said Managing Director M. Malakondaiah.
Speaking to mediapersons here on Friday, he said that compared to 2015 the losses have increased by Rs.100 crore. He attributed the loss to drop in occupancy ratio (OR) and also to demonetisation at the end of last year.
According to him, the OR has come down by 0.9 per cent and in East Godavari it was 5 per cent. He said that the corporation is incurring indirect loss like 43 per cent fitment giving to employees (Rs.720 crore) and interest payouts amounting to Rs. 250 crore.
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“I feared to join as RTC MD keeping the losses in view. Now, I understood the areas where we can increase revenues and cut the expenditure,” said Mr. Malakondaiah. He said that they want to repay loans and at the same time tap the resources including saving 1 kmpl oil which gives Rs. 35 crore and increasing 1 per cent of OR which fetches Rs. 67 crore. He also said that giving the RTC land for lease for shopping complexes in all the towns and other issues would be considered to generate revenue.
The MD said that they were going to withdraw one third of the old buses and bring 3,000 new buses this year.