Significantly, the government also announced a fund for accident compensation and prevention, besides a panel to go into restructuring of bus fares in future.
Effective from tomorrow, the fare has been hiked for buses across categories viz moffusil, city, ordinary, express, deluxe, bypass-non-stop, ultra deluxe, airconditioned and Volvo modes, an official release said.
While the minimum hike is in moffusil ordinary category, where the fare of Rs 5 for 10 km would now be Rs 6 (20 per cent hike), the highest is in Volvo buses, where the fare of Rs 33 for 30 km will now go up to Rs 51 (54.54 per cent hike).
The government cited a host of factors for the hike, including increase in fuel price and maintenance, annual increment in salaries, pension and purchase of new buses to increase efficiency.
Defending the hike, it said the last time fares were increased was on November 18, 2011 when diesel cost Rs 43.10, whereas the price now was Rs 65.83.
The government also cited data to claim that the fares, despite the increase, was lesser than in neighbouring states, including Andhra Pradesh.
The government quoted the interim order as saying, "data furnished in the supporting affidavit shows that the present bus fare is inadequate to meet,even the operational cost."
The court had also said "with the existing funds and resources, maintenance cost, debt, loss and such other economic factors ...the need to revise bus fare, appears to be inevitable, though it may cause inconvenience."
The government said that since 2000 till date, Karnataka had hiked the fare 16 times, while Andhra Pradesh and Kerala had done so eight times.
These corporations have so far incurred a recurring loss of Rs 20,488 crore, the government said.
"Though the increase in fare was avoided so far,it is now inevitable so as to tackle the fund cruch and to continue to give the people a good transport service," the release said.
In a significant step, the government said an integrated 'Accident prevention, compensation and toll fee fund' would be set up, under which speed governors would be installed in long distance express buses as part of accident prevention efforts.
Unlike neighbouring states, the fare in Tamil Nadu presently does not cover insurance and toll fee components.
Henceforth, the fare will cover an integrated component of accident insurance and toll fee as well, it said.
From a minimum of Rs 1 (upto Rs 25 fare) a maximum of Rs 10 will be levied (for fares above Rs 501) for this purpose.
Defending its decision, the government said since timely compensation for accidents was not provided, as many as 652 State-run transport corporation buses were under court attachment proceedings. Also, the state transport corporations spent an average of Rs 12 crore per month towards toll fee.
For those injured, it would be between Rs 10,000 to Rs two lakh depending upon the nature of injuries and duration of hospitalisation. For those who suffer permanent disability or head injury, the compensation will be Rs five lakh, it said.
The government said restructuring of fares in future would be done by a committee of senior government officials based on computation involving indices covering fuel price hike,changes in maintenance and repair cost and increment in salaries.
Workers of Tamil Nadu State Transport Corporation (TNSTC) owing allegiance to 17 trade unions,including those affiliated to DMK and Left parties, had gone strike on January 4 after failure of talks with the government on wage revision.
While unions wanted a 2.57 times hike, the government offered only 2.44, resulting in a stalemate.
The strike severely crippled public sector bus services, causing immense hardship to public, including office-goers in cities though the government tried to maintain services by roping in temporary drivers and private buses.
the unions had called off the strike on January 11 after the Madras High Court appointed an arbitrator to settle their wage dispute with the government.
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