CTU running in losses, Chandigarh admn proposes up to 15% hike in bus fare
Chandigarh With Chandigarh Transport Undertaking (CTU) running in losses for the past one decade, the UT administration is all set to hike bus fares by 10-15%.
It was in 2012 that the fares were hiked the last, that too after 10 years. With a fleet of 533 buses on tricity and long routes, the CTU services around 1.7 lakh passengers daily.
UT transport secretary KK Jindal said the proposal to increase fares has been sent to the UT administrator for approval. Jindal said the proposed hike is nominal as the department has been suffering huge losses for the past several years.
“The losses have been piling up as the fares are not increased regularly while the cost of diesel and maintenance of buses has gone up tremendously,” he said.
At present, people commuting in air-conditioned (AC) buses have to pay Rs 10 for up to 3km, Rs 15 for 3-10km and Rs 20 for above 10km. Those using non-AC buses are charged Rs 5 for up to 3km, Rs 10 for 3-10 km, and Rs 15 for over 15km.
3 yrs, 3 meets, no decision
While the CTU has operation cost of Rs 225 crore, its annual revenue is just Rs 135 crore.
Even though the UT administration formed Chandigarh City Bus Services Society through its special purpose vehicle (SPV) in March 2015 for financial sustainability, in the past three years it has conducted only three meetings and taken no concrete decision.
The society was formed on the Union government’s directions as a World Bank-aided project. Under the SPV, CTU was to generate income from parking, advertisement and bus queue shelters, but the society took no decision in this direction.
Even as the SPV was in the process of installing and monitoring an intelligent transportation system (ITS) for modernisation of the city bus service, nothing has happened so far.