PRTC income dips 45% on free travel for women, government college students

The PRTC recorded daily revenue of ₹1.35 crore in March. Since April 1, however, the average daily income has been between ₹75 lakh and ₹80 lakh

Two weeks into the implementation of the Punjab government’s decision to implement free travel in government buses for women and government college students from April 1, the income of Pepsu Road Transport Corporation (PRTC) has dipped by almost half (45%). The PRTC recorded daily revenue of ₹1.35 crore in March. Since April 1, however, the average daily income has been between ₹75 lakh and ₹80 lakh.

PRTC needs at least ₹19 crore a month to pay salaries and pensions to its employees. (HT file)

In the state budget presented in the assembly on March 8, the government had expanded the scope of the scheme to cover students studying in government colleges too. The government had set aside ₹170 crore to fund the scheme.

The government freebie, for now, has meant that it will struggle to meet committed expenses, including diesel cost. Nirmal Singh Dhaliwal, convener, PRTC-linked trade unions, said, the figures of the first fortnight presented a grim financial situation, and it was going to worsen over time.

“How will the corporation pay for its diesel and salaries?” Dhaliwal questioned, adding that, “The corporation spends around ₹65 lakh a day on diesel for running its full fleet of 1,073 buses, while the daily salary and pension bill is pegged at ₹55 lakh.”

PRTC needs at least ₹19 crore a month to pay salaries and pensions to its employees. “With the present income, the corporation will struggle to meet its expenditure. We are going to meet the PRTC management to press upon the government to give the earmarked ₹170 crore in advance, so that the corporation is spared the financial burden,” Dhaliwal added.

PRTC managing director Bhupinderpal Singh said they are taking up the matter with the government. “We will meet senior officers to apprise them of the fresh financial situation,” he said. Chairman KK Sharma said they were providing daily receipt of figures to the transport secretary. “We are working on logistics so that the corporation does any face shortage of funds,” he added.

The PRTC runs buses from nine depots of Ludhiana, Kapurthala, Chandigarh, Patiala, Bathinda, Budhlada, Barnala, Faridkot and Sangrur. It has also approached the state government for a ₹90 crore bailout package to compensate for losses it incurred, during and after the coronavirus-induced lockdown. The first 60 days of the complete lockdown last year had caused a loss of ₹51 crore to the PRTC.