Commuting In Himachal Pradesh Could Soon Get Costlier, Cash-Strapped Sukhu Govt's Key Meet Today

Himachal Pradesh is considering a 15% increase in bus fares, with the minimum fare potentially rising from Rs 7 to Rs 10.

Himachal CM Sukhvinder Singh Sukhu to hold a cabinet meeting on Saturday.

Source : PTI

Commute in Himachal Pradesh could get costlier as Chief Minister Sukhvinder Singh Sukhu will chair a cabinet meeting on Saturday where a decision can be taken to increase the bus fare by over 15 per cent. 
 
The meeting, which comes after Sukhu's visit to New Delhi, will take place at 3 PM and several important decisions are expected to be taken in the meeting. A decision regarding the proposed bus fare hike for the Himachal Road Transport Corporation may also be made. The minimum fare could rise from Rs 7 to Rs 10, and the increase in bus fares might exceed 15%..

However, just before the meeting, Ramesh Kamal, the General Secretary of the Himachal Private Bus Operators Association, flagged concerns over not increasing the regular bus fare. Private bus operators are demanding a hike in the minimum bus fare from Rs 5 to Rs 15. They argue that the regular fare in Himachal is the highest in the country, while the minimum fare is the lowest.

HRTC Incurring Losses

Amid the economic crisis, the Sukhu government has been struggling with HRTC's continuous losses. By March 31, 2023, HRTC’s total deficit was Rs 1,966 crore, which rose to Rs 2,119 crore by March 31, 2024. The corporation has already surpassed R2,200 crore in losses. The government provides an annual grant of over ₹700 crore to HRTC.

Deputy Chief Minister Mukesh Agnihotri, who also oversees the HRTC department, has stated that the cabinet will decide on the fare hike. Currently, the corporation operates 3,800 bus routes with a fleet of 3,000 buses. HRTC offers discounts on fares for about 28 categories, with the largest cost arising from providing a 50% fare discount for women.

Financial reports indicate that by March 31, 2024, the total interest paid by the state government will be Rs 31 crore, while HRTC has already received a grant of Rs 733 crore from the government. To meet the public transport demand, HRTC needs to purchase 315 electric buses, 250 diesel buses, over 20 Volvos, and nearly 150 tempo travellers for its fleet.

In Himachal Pradesh, both private and government buses are the main mode of transport in hilly areas. Therefore, any decision made by the government will impact both passengers and bus operators. 

(With inupts from Parakram)