APSRTC to sell fuel to hired buses

APSRTC to sell fuel to hired buses
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Andhra Pradesh State Road Transport Corporation (APSRTC) is pulling out all stops to cut down operating costs, in a bid to earn profits. After hiking passenger fares, which added Rs 500 crore to the coffers, the corporation is now offering fuel to hired buses and the officials expect that the move would cut down the fuel and operating costs by Rs 20 cr.

Officials expect the move will cut down fuel cost by Rs 20 cr per annum, as the cost of fuel at corporation-run fuel stations is Rs 3 to 3.5 less than the market price

The Minister for Transport, Roads and Buildings Sidda Raghava Rao addressing the media in Rajahmundry on Monday.

Ongole: Andhra Pradesh State Road Transport Corporation (APSRTC) is pulling out all stops to cut down operating costs, in a bid to earn profits. After hiking passenger fares, which added Rs 500 crore to the coffers, the corporation is now offering fuel to hired buses and the officials expect that the move would cut down the fuel and operating costs by Rs 20 cr.

APSRTC is running 2,030 buses, which are hired from private owners across various depots. According to the contract, RTC and the bus owners share the income generated, while operational and fuel costs are borne by the owners alone.

However, in order to increase the revenue, the RTC officials have charted out a proposal, where in RTC supplies fuel to the hire buses. This decision was taken in the month of October and it was being implemented across the state from the past three days. The officials are issuing token to the hired bus drivers enabling them to fill from RTC run fuel stations.

RTC has its own fuel stations and the net price is Rs 3 to 3.5 less than the market price. It is estimated that a bus consumes 90 litres of fuel per day. Going by the estimates the move would cut down the fuel cost by Rs 270 per day per bus, thereby increasing revenue.

The officials expressed confidence that cut down the fuel costs for hired buses by Rs 20 cr per year. Speaking to The Hans India, Shaik Adam Saheb, manager APSRTC Ongole region said, “We started offering the fuel to hired buses three days ago.

Of 97 hired buses, about 20 are filling from the fuel station at the depot. We expect the remaining would also turn up in a week, after the corporation address few technical issues with the owners.” With plans afloat to hire more buses in a bid to increase reach and frequency, the officials are keen to offer fuel to the buses to be hired.

“The scheme was only optional until now but we are keen to make it mandatory in the new contracts, which we would be signing,” said a senior official. It has been reliably learnt that the RTC staff are keen to cut down the operational costs on hired buses top Rs 50 cr and are mulling to offer maintenance services.

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