Mumbai, Oct 14 (PTI) The Maharashtra State Road Transport Corporation (MSRTC) on Monday cancelled the proposed 10 per cent fare hike scheduled to be implemented during the Diwali season, officials said.
The fare hike cancellation, announced ahead of the assembly elections, is a huge relief for passengers opting to travel in state transport buses during the festive season.
The MSRTC decision coincides with Chief Minister Eknath Shinde announcing an exemption from paying the toll to light motor vehicles entering Mumbai.
Initially, the revised fare was supposed to come into effect between October 25 and November 24 which could have fetched the cash-strapped transport body a revenue of Rs 70 crore to Rs 80 crore.
The state-owned public transport corporation had already issued a circular to all regional heads asking to stop the implementation of the proposed fare hike, the official said.
Traditionally, the MSRTC is allowed by the state government to raise the fare during the festive season every year, and the hike typically translates into 10 per cent.
A senior MSRTC official said the corporation’s newly-appointed chairman Bharat Gogawale recently signed a proposal for the scheduled hike in fare. The recommendation was, however, turned down by Mantralaya, the state secretariat.
“The cancellation of the proposed fare revision will put a financial burden on MSRTC as it has to pay Rs 40 crore in bonus to eligible employees before Diwali, apart from settling staff dues,” he said.
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. PTI KK NSK
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