This Article is From Jan 11, 2012

Tamil Nadu govt justifies hike in bus fares

Justifying the November 2011 hike in fares of public transport buses in Tamil Nadu, the ruling AIADMK government today pointed out that State Transport Undertakings (STUs) operated at decade old fares, resulting in heavy losses to the STUs.

In a counter affidavit to a petition filed by advocate P Pugalenthi, challenging the steep hike in fares, it said the losses suffered by the eight STUs in April-October 2011 alone was a staggering Rs 1186.07 crore, while the projected cash loss for 2011-12 fiscal was Rs 1792.93 crore and net loss to the tune of Rs 2216.14 crore.

The government submitted that the main contributory factors for the loss was 'non-revision of tariff since 2011 while  cost of HSD Oil increased by 137.67 per cent and establishment costs, due to three time wage settlements, by 180.56 per cent.
"Likewise, other variables had also increased sharply," the affidavit said.

While Karnataka State Road Transport Corporation had revised bus fares seven times since 2006, Kerala State Transport had increased bus fares six times since 2001 and Andhra Pradesh four times after 2001, the affidavit said.

Claiming that government had taken into consideration all aspects like road conditions, fuel costs, material costs and administrative expenses while fixing fares, the affidavit said there was accordingly a revision of daily, weekly and monthly bus passes.

Rejecting the averment that the increase appeared to be over 100 per cent, the government said the revision had been published in the official gazette as required, considering the larger public interest, and hence there was no violation of Articles 14 and 21 of the Constitution.

The government sought dismissal of the petition.

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