Fuel outlets run by TSRTC staff set to rake in revenue
MoU with oil companies inked for running 92 outlets across TS, as the Corporation stares at cash crunch and has excess work force
Hyderabad: The cash strapped Telangana State Road Transport Corporation (TSRTC) has started operating fuel outlets, which would be maintained by the RTC staff.
The Corporation has entered into MoU with oil companies for 92 outlets including HPCL at 61 locations and with IOCL at 31 locations in the state. Earlier, the Corporation had given these outlets to the service providers for commission.
With a service provider from Karimnagar Zone opting for a premature termination of the agreement after a year, the Corporation has decided to run these outlets on its own. According to the officials, the outlets would be run with the help of RTC employees, who have become excess due to the introduction of private hire buses.
Transport Minister P Ajay Kumar virtually inaugurated the operation of fuel outlets at Janagaon of Karimnagar Zone on Thursday. Other outlets Hanamakonda, Mahabubabad, Bichkunda, Birkur and Asifabad of Karimnagar Zone would become operational from August 15.
"We already started cargo services for increasing the revenue of TSRTC. Now, this project of retail fuel outlets started by TSRTC is to augment more revenue to the Corporation. With the operation of these fuel outlets, TSRTC will get revenue of around Rs 20.65 lakh per month (Rs 17 lakh in the form of commission and Rs.3.65 lakh in the form of lease rentals).
As per the agreement, once the construction of the outlet is completed in all aspects, TSRTC has to take over the same and starts the operations either with the appointed service provider or on its own. The Oil companies would pay a commission of Rs 2.83 per liter on MS Oil and Rs 1.89- per liter on HSD Oil in addition to lease rentals for the sites.
Officials said that once all the outlets are also commenced by RTC itself, the total expected revenue would be Rs 83.58 lakh per month (Rs 67.72 lakh in the form of dealer commission and Rs 15.86 lakh in the form of lease rentals).