RTC to hire Volvo to reduce maintenance costs

HYDERABAD: The Andhra Pradesh State Road Transport Corporation (APSRTC) is contemplating to hire Volvo air-conditioned buses to operate on long distance routes in the state. As of now Pallevelugu and super luxury buses were being operated on hire basis in rural areas and now Volvo buses will also be operated on the main routes in the state.The RTC is operating as many as 4,000 buses on hire basis at present and the corporation is planning to hire more buses in the future. According to the RTC officials, the reason to hire buses is to reduce maintenance costs. Diesel, driver’s salary and other expenditure will be borne by the bus owner while the RTC would provide conductor to the bus.The corporation owns as many as 102 Volvo AC buses and 20 Mercedes Benz buses which are being operated on long distance routes in the state. According to official sources in the first phase 50 Volvo buses will be taken on hire basis and some more will be inducted in a phased manner.The biggest public transport corporation in the country, the APSRTC is incurring heavy losses due to hike in disel, employees’ salaries and maintenance costs. According to officials, there is a two- rupees variation between expenditure and income per kilometre in the buses. The organisation is spending Rs 25 per km but getting Rs 23 per km and incurring a loss of Rs 4 to 5 cr through air-conditioned buses.According to officials the accumulated loss was Rs 2,700 crore besides liabilities in the form of loans raised from banks. The management is introducing several new schemes to overcome the losses. But the employees’ unions were opposing the management’s decision to hire buses.  They fear that it was nothing but  privatising the organization.