PRTC succumbs to unions’ threats, decides to add 100 buses to its fleet
In May, the board of directors of the corporation gave a green signal to start 250 new buses, including 100 owned and run by the PRTC.Updated: Jul 24, 2017 09:31 IST
Succumbing to protest threats of its employees’ unions, the Pepsu Road Transport Corporation (PRTC) has revoked its decision to permit 100 private buses under the KM scheme and will now go ahead with its earlier plan to add as many buses to its own fleet.
Citing financial constraints, the PRTC had earlier deferred its decision to add self-financed buses to replace its outdated vehicles and decided to increase its fleet under KM scheme to 250 buses.
However, the corporation’s move attracted opposition from the employees’ unions, which condemned its management for promoting private players.
The unions had also threatened to stage protests if the corporation went ahead with adding private buses under the KM scheme, instead of coming up with self-financed buses.
In May, the board of directors of the corporation gave a green signal to start 250 new buses, including 100 owned and run by the PRTC. The remaining 150 buses were to be run under the KM scheme.
A PRTC official said under the KM scheme, the running cost of a bus is estimated to be around Rs 6.68 per km, while in self-financed buses, the expenses are pegged at Rs 7.80 per km.
“In KM scheme, the entire responsibility of operating the buses is of the private transporter, as the corporation has to give only the running cost. Even the insurance and security expenditures are borne by the transporters,” an official said.
He added, “Moreover, in self-financed buses, the corporation needs around Rs 25 crore for the purchase and fabrication of the buses.”
PRTC managing director (MD) Manjit Singh Narang said they have dropped the idea of adding buses in KM scheme, considering the demands of employees’ unions.
“We will go by our earlier decision to come up with self-financed 100 buses. Considering the financial viability to run buses under the KM scheme, the corporation has planned to increase its fleet as we had got very viable running cost rates from the transporters,” Narang said.
Meanwhile, the PRTC has changed the guidelines related to the KM-scheme buses to ensure transparency and curb control of any kind of transport mafia.
As per new rules, no private transporter will be able to apply for the km-scheme buses and one owner will not be allowed to run more than two buses under the scheme.
First Published: Jul 24, 2017 09:31 IST