Facing criticism over revision in fares of all air-conditioned buses by up to 10 per cent, the Delhi Transport Corporation (DTC) on Wednesday withdrew revised fares within hours of its announcement.
In afternoon, the DTC had issued a Press statement stating that it has revised fares of AC buses by up to 10 per cent. DTC has revised the existing fare up to 10 percent of AC buses and the corporation started charging fare hike from commuters since Wednesday morning as several commuters complained that the government has increased fare of AC DTC buses without prior information.
However, in the evening, the DTC issued another statement, saying, “This Press release sent (earlier) regarding service tax on DTC AC buses be treated as withdrawn. This is the first time that commuters were asked to pay service tax for travelling in DTC AC buses in Delhi.”
Sources said Transport Minister Satyendar Jain was not happy with move and thereafter, DTC was asked to roll back fare hikes. According to sources, within eight hours the move was withdrawn.
“It is apprised that consequent upon the decision of the Government for payment of Services Tax on 40 per cent revenue earned by AC buses of DTC, it has been decided by the competent authority to charge new fare in AC buses with immediate effect,” DTC Press statement has stated.
Following hike in the fare revision, commuters reacted sharply as they were not informed earlier. The increase in the fare also resulted in confusion among the conductors who had to issue a separate ticket for the hiked amount. “The Government has not issued any advertisement on fare hikes. The fare should be in round figure. Change is going to be a big issue,” commuters had said.
Former Delhi Transport Minister Harun Yusuf has termed it a Diwali gift by the AAP Government for the people of Delhi. “Does it make any sense to increase fare through back door to put blame on others,” he said.
Delhi Congress chief Ajay Maken also criticised the Government for fare hike.
According to DTC officials, fares of DTC's Airport Express Bus Service have also been revised with minimum fare now being Rs 27 from earlier Rs 25, and the maximum to Rs 106 instead of Rs 100. However, there was no change in the fares of the non-AC buses of DTC and cluster buses. The State bus agency has also revised fares for children by up to 10 per cent. Fares of DTC's Airport Express Bus Service have also been revised with minimum fare now being Rs 27 from earlier Rs 25, and the maximum to Rs 106 instead of Rs 100. The last revision of fare hike was in 2009.
It is noted that no new buses have been added to the DTC's fleet since 2010. Since 2013, the DTC have had three failed tenders to procure buses. On an average close to 400 buses break down daily.
The corporation has been sending requests for fare revision for the last few consecutive years. Deputy Chief Minister Manish Sisodia had earlier formed a fare fixation committee comprising Principal Secretary (Finance) and DTC CMD. The committee had submitted its recommendations to Deputy Chief Minister few months ago.
“Bus breakdowns, no increase in ticket sale and increased employee cost are among the many factors affecting the finances of the DTC,” said officials.
From 2010-2011 till 2014-2015, the DTC racked up a whopping Rs 11,962.09 crore in losses, while the operational losses in that period were Rs. 5,022.05 crore. The operational loss in 2014-2015 - Rs 1,273.19 crore - was also the highest in the previous five financial years.
“As against the total income of Rs 5,922.98 crore during 2010-15, corporation's cash expenses were Rs 9,656 crore, resulting in a cash crunch,” a confidential report on DTC said. “The main components of the operating cost are wages and salaries accounting for 62 per cent of the total operating cost, fuel (CNG) which accounts for nearly 21 per cent and annual maintenance which accounts for nearly 11 per cent,” said a DTC report.