'Link auto, taxi fare with inflation index'

Auto and taxi fares in Delhi could soon be linked to fuel price changes, inflation index and the cost of maintenance, if the Delhi government accepts a proposal floated by the Planning Commission.

Officials in the know said that the Commission is of the opinion that auto and taxi fares in the capital should be increased rationally. It has suggested an index-linked method to determine the extent of fare hike based on the cost of purchasing an auto, fuel price, maintenance cost and increase in Consumer Price Index for Industrial Workers and Agricultural Labourers, like in many other states. Last month, the Delhi government increased the fares of auto rickshaws and taxis by a steep 25 per cent because of increase in Compressed Natural Gas (CNG) costs. As a result of the increase, the base fare of autos in Delhi went up from Rs 19 to Rs 25 for the first two kilometres and from Rs 6.50 to Rs 8 for every subsequent kilometre. A similar increase was affected for taxis as well. The hike came into effect soon thereafter.

Officials said the Commission felt that when the cost of an auto rickshaw in the capital was Rs 500,000, the per kilometre charge was Rs 6.50. But, when the Supreme Court had ordered the price of auto rickshaws to be reduced to Rs 180,000, what was the reason for raising fares, that too by 25 per cent.

The Commission has also suggested the constitution of a high-powered expert committee to review the auto and taxi fares in the capital. The Committee, according to the Commission’s suggestion, should comprise representatives of the Delhi government, the Planning Commission, the Society of Indian Automobile Manufactures, the Ministry of Road Transport and Highways and members of auto and tax unions. The sharp increase in auto and taxi fares in the national capital last month had invited condemnation from commuters as the service was not up to the mark. However, officials have justified the increase on the grounds that CNG prices have risen by almost 40 per cent between 2010 and 2013.

The per kilometre rate for auto rickshaws in other metros like Mumbai, Bangalore, Hyderabad and Kolkata ranges between Rs 9-12. Delhi has over 60,000 registered auto rickshaws and a lesser number of taxis.