Decline in ridership and increase in operational costs, not to mention mounting fuel bills, is resulting in the Bengaluru Metropolitan Transport Corporation (BMTC) suffering a daily loss of Rs 88 lakh.
“In the past two months, diesel prices went up several times. Hence, we have not dropped the proposal regarding hiking fares,” V Ponnuraj, managing director at BMTC told ET.
The cost per kilometre (CPKM) and earnings per kilometre (EPKM) – a yardstick BMTC uses to assess performance every month — has shown an alarming gap between April and August this year.
The corporation is losing a whopping Rs 18.31 per km from air-conditioned buses and Rs 6.31 per km from non-air conditioned buses. The cumulative loss stands roughly about Rs 88 lakh a day, as the AC buses run 1.35 lakh km a day and the ordinary buses run close to 10 lakh km a day. Read More