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RTC needs 3,717.95 cr to overcome its financial woes

RTC needs 3,717.95 cr to overcome its financial woesAPSRTC Managing Director N V Surendra Babu addressing media persons in Vijayawada on Friday
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The Andhra Pradesh State Road Transport Corporation (APS RTC) needs Rs 3,717.95 crore to overcome the financial crisis totally, said corporation Managing Director NV Surendra Babu.

Vijayawada: The Andhra Pradesh State Road Transport Corporation (APS RTC) needs Rs 3,717.95 crore to overcome the financial crisis totally, said corporation Managing Director NV Surendra Babu. Addressing media persons here on Friday, Surendra Babu said that no one can be faulted for the present crisis. Explaining the RTC's financial status to the media in the backdrop of employees strike call, he said that the budget support is required from the State government.

The replacement and augmentation of buses needs Rs 666.50 crore, Rs 2052.70 crore grant in aid is required for repayment of current liabilities and Rs 998.75 crore required for continuation of concessions and arrears. The RTC MD has also proposed to increase the ticket fares up to 30 per cent to overcome financial challenges for 2019-20 and thereafter 7.5 per cent hike is necessary.

The APSRTC needs compensation of Rs 750 crore for operating Telugu Velugu bus services with huge losses. He also said that the waiver of Motor Vehicle Tax requires a sum of Rs 300 crore per annum for five years.

He said that the employees issued strike notice to RTC management while the management is for discussions to solve the issues. They brought the issues to state government in the past also. The RTC management would again bring the employees strike notice issue to state government after the counting of votes on May 23, Surendra Babu said.

The arrears of employees were not released though an assurance was given he said and added that state government has already paid part payment of dues of Polavaram visits and services for Dharmaporata Deeksha meetings.

The RTC gross revenue is Rs 5,995 crore for the year 2018-2019 he said and added that the corporation has Rs 3,380 crore bank loans in the total liabilities of Rs 6,445 crore. The corporation has 53,261 employees and no employee has been removed from the service, he said. But the corporation is implementing cost-cutting steps to save the organisation, he stated.

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