With additional discount on diesel, PRTC to save Rs 4 crore a year
Under the MoU, the PRTC had struck a deal with IOC for five years for the rebate of Rs 1.05 per litre over procurement of diesel in bulk on diesel, but, the IOC has now agreed to an additional discount of Rs 1.32 per litre.punjab Updated: Aug 13, 2017 11:19 IST
The cash-strapped Pepsu Road Transport Corporation (PRTC) that loses around Rs 1 crore a year will save around Rs 4 crore a year on its diesel cost, managing director Manjit Singh Narang has claimed.
“The Indian Oil Corporation (IOC) has agreed to give PRTC a fresh rebate on diesel. Diesel will now cost us Rs 52.44 per litre against Rs 53.76 previously. With our daily consumption at 85,000 litres, we will save Rs 33.6 lakh per month and Rs 4 crore a year,” Naranag said.
The new rates follow the signing of the Memorandum of Understanding (MoU) between the PRTC and the IOC.
Under the MoU, the PRTC had struck a deal with IOC for five years for the rebate of Rs 1.05 per litre over procurement of diesel in bulk on diesel, but, the IOC has now agreed to an additional discount of Rs 1.32 per litre.
“With increased in number of buses in past two years, we decided to approach IOC for additional rebate,” Narang said, adding that from 900 in 2015, the PRTC now operated 1,075 buses.
Fare hike helped raise additional Rs 2.4 lakh a day
The decision of the Punjab government to increase bus fare by three paisa per km, helped cash-strapped PRTC to improve its fiscal condition as the corporation has started generating a revenue of at least Rs 72 lakh per month, adding Rs 2.4 lakh per day to its daily revenue receipt of Rs 1.15 crore.
From June onwards, the travel cost in ordinary buses is pegged at Rs 1.02 per km, while the fare of heating, ventilation and air conditioning (HVAC) buses is Rs 1.22 per km, which is 20% in excess of the ordinary buses. Meanwhile, those travelling by integral coaches have to pay Rs 1.83 per km, while the charges of a super integral coach will be Rs 2.04 per km, which is double the fare of the ordinary buses. The PRTC has nine depots across the state and has a fleet of a total of 1,075 buses, including 25 HVAC and 12 Volvo buses.