(MENAFN- Live Mint) The Maharashtra State Road transport Corporation (MSRTC ) has walked back on its proposed 10 per cent passenger fare hike which was supposed to be implemented in October and November, PTI reported.
The cancellation was announced by a MSRTC official on October 14 and comes ahead of the Maharashtra assembly elections . This will be a relief for state transport passengers, who use these buses to travel during the festive season, it added.
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MSRTC has issued circulars to regional heads, directing a stop to the proposed fee hike, the official added.
The 10 per cent passenger fare hike was supposed to be implemented between October 25 and November 24. It was aimed at garnering revenue of around ₹70-80 crore for the cash-strapped state public transport body, it added.
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The report noted that usually the state government allows MSRTC to raise fares during the annual festive season by around 10 per cent, but a senior MSRTC official told the agency that time the recommendation was refused by the state secretariat, Mantralaya .
The official stated that the corporation's newly-appointed chairman Bharat Gogawale signed the proposal for the scheduled hike in fare, but Mantralaya turned down the recommendation, the report said.
“The cancellation of the proposed fare revision will put a financial burden on MSRTC as it has to pay ₹40 crore in bonus to eligible employees before Diwali, apart from settling staff dues,” he said.
Notably, earlier on October 14, Maharashtra Chief Minister Eknath Shinde announced exemption from toll payment for light motor vehicles entering Mumbai.
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Last Diwali, MSRTC implemented a 10 per cent fare hike between November 8 and 27, citing the rise in demand for state transport buses during the Diwali season.
MSRTC is one of the largest transport corporations in India which operates a fleet of 15,000 buses, transporting more than 55 lakh people every day.
(With inputs from PTI)
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