The Andhra Pradesh Government is negotiating with bus makers such as Tata Motors and Ashok Leyland for buying buses on hire purchase basis.
The AP State Road Transport Corporation is purchasing 737 buses worth about Rs 332 crore, for which it is preparing to float tenders within two months.
State Transport Minister Botcha Satyanarayana said that so far the corporation has been taking finance from banks for purchase of new buses.
“What we now propose to do is to get buses on hire purchase basis and pay for the vehicles on equated monthly instalments to the manufacturers. We are negotiating on this with a few companies, including Ashok Leyland and Tata Motors,” he told media persons here today.
The corporation will be also incorporating some penalty clauses that would make it mandatory for the successful bidder to pay penalty for any structural or mechanical failures that the buses encounter during their operations.
Bus fares hiked
The Minister said the government had introduced a hike in bus fares from the midnight of Wednesday. For APSRTC rural services, the hike is Re 1 from 5 km to 35 km and Rs 2 from 35 km to 50 km. The increases for Hyderabad city services are Re 1 up to 14 km and Re 1 per stage for metro express and deluxe services.
“The small hike is inevitable with rising cost of diesel. The price revision will fetch the corporation an additional annual revenues of Rs 450 crore,” Satyanarayana said.
The APSRTC suffered a loss of Rs 500 crore last fiscal, with its total accumulated losses being Rs 3,500 crore and debt on its books Rs 4,500 crore.
Private operators
Since the tragic bus accident in Mehboobnagar district last week, the AP Government has stepped up its drive against private inter-city bus operators for violating regulatory norms.
“We have booked 600 cases and seized 346 buses for various violations such as tax evasion, over-seating and permit irregularities,” he said.
amitmitra@thehindu.co.in