There is a clamor from both AP and Telangana for bifurcation of APSRTC as soon as possible. Putting aside the issue of bifurcation, there is a far more serious issue facing the APSRTC: that of profitability.
For the financial year 2014-2015, the losses of APSRTC have been pegged at nearly Rs 1000 crore, Rs 600 crore for AP and Rs 400 crore for Telangana. This is an all-time high.
Last year, the losses were Rs 780 crore. The cumulative losses for AP are Rs 3000 crore and Rs 2500 crore for Telangana to date excluding the Rs 1000 crore loss for this year.
How long will APSRTC be patronized by the government despite the latter’s extremely bad track record? How long will the people of the State have to continue to pay taxes to fund non-performers? Why should good money be thrown after bad? Will the government refuse to take action or a firm decision because of vote-bank politics?
AP following the bifurcation is in need of funds badly. It cannot afford any sorts of ‘white elephants’ at this juncture!
Corrective action should be taken immediately in the case of loss making behemoths like the RTC or such organizations should be done away with for good. Let the economy and not vote-bank politics guide the decision-makers. Else, the State will continue to bleed.
