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DMK recommends administered pricing mechanism to tackle bus fares

IANS  |  Chennai 

The DMK party, which has been in the forefront of protests against the bus fare hike, has suggested an administered pricing mechanism (APM) system to fix fares for buses operated by the eight State Transport Corporations (STC) and also to bring fuel prices under the GST ambit at 10 per cent.

on Tuesday submitted to Chief

a report prepared by the five-member committee headed by former Union on restructuring the STCs.

The DMK set up the committee after the government jacked up bus fares to rake in around Rs 3,600 crore.

According to the report, the government should reimburse all the expenses of the STCs and 12 per cent return by forming a State Corporations Central Pool Account (TNSCCPA).

This is similar to the Coordination Committee that determines prices.

The report said only when the STCs perform well and earn sufficient surplus the 12 per cent return from TNSCCPA should be given to them.

The report has proposed that to manage the TNSCCPA, the government should form a State Corporations Co-ordination Authority (TNSCCA).

The report also recommended bringing under the GST regime at 10 per cent rate.

Some of the other recommendations are:

-The government should compensate the STCs for its losses due to the government's policies;

-State-owned bus transport service should be considered as public service and subsidies should be allocated in the state budget in a transparent manner;

-The government should foot the bill for future hike in salaries and pensions;

-STCs should build bus bodies;

-Fix STC bus timings in such a way that they earn profits;

-Each STC bus has to return to depot for maintenance after 16 hours of operation;

-The government should allocate Rs 1,000 crore in its budget every year for purchase of new buses;

-Making insurance for STC buses compulsory and the government should take care of the premium bill;

-Conduct energy audit;

-STCs should increase revenue from other sources;

-Introduce Tatkal scheme in bus seat reservation.

--IANS

vj/and/rn

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 13 2018. 14:48 IST
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