BRTS ride set to become costly, here are the reasons

Ahmedabad, 11 November, 2011

Ahmedabad Janmagar Limited (AJL) has increased ticket fare of BRTS buses.

BRTS was started on 14 October, and ticket prices were decided as per operating cost on that day.

However after two years of operations, diesel price has witnessed five to six fold increase. BRTS buses are operated through operator presently and according to terms and conditions in tender, the operators are awarded increase in payment. Moreover every year in July, operators are paid more due to wholesale price index increase. In last years operators have received increment for seven times. Therefore the original figure which was Rs 34.11 per km is now Rs 43.11 per km. At the same time there is no price increase in ticket charge in last two years. Therefore there’s 33% lose at present.

To make Ahmedabad Janmagar Limited company self dependent, free from any burden on Ahmedabad Municipal Corporation(AMC), it was decided that once every year there will be formula based fare increase. Such formula is in practice in Karnataka, Singapore, Bangkok etc places.

In next five years, entire BRTS corridor in Ahmedabad will serve around 4.80 lakh passengers and if formula based fare increased is not implemented, Ahmedabad Janmagarg Limited will face loses as big as Rs 190 crore.