Shimla: The financial condition of Himachal Pradesh Transport Corporation (HRTC), the state’s second-largest public sector undertaking, continues to deteriorate as its total losses have surged to over Rs 2,200 crore. The corporation’s financial report, presented in the Vidhan Sabha along with the budget, highlights a concerning trend of increasing debts, overdrafts, and a growing reliance on government grants.
According to the report, HRTC’s total loss stood at Rs 1,966 crore as of March 31, 2023, which further escalated to Rs 2,119 crore by March 31, 2024. Since then, the losses have exceeded Rs 2,200 crore. The corporation, which currently employs 10,853 people, is burdened with running loss-making routes to ensure bus connectivity in remote areas.
Declining Revenues, Rising Dependence on Grants
The financial report reveals a decline in HRTC’s income over the last two years while dependence on state grants has significantly increased. In 2022-23, HRTC generated revenue of Rs 825 crore, but in 2023-24, earnings dropped to Rs 782 crore. Meanwhile, state government grants surged from Rs 537 crore in 2022-23 to Rs 733 crore in 2023-24, largely used for salaries and pensions.
The corporation’s outstanding loan burden has also increased. As of March 31, 2024, the total interest payable to the state government stood at Rs 31 crore. Despite this, the corporation continues to struggle with financial sustainability.
Operational Challenges and Subsidized Travel; Fleet Expansion Plans Amid Crisis
HRTC currently operates 3,800 bus routes with a fleet of 3,000 buses, providing crucial transport services across Himachal Pradesh. The corporation offers concessional fares under 28 different categories, with the biggest financial strain coming from the 50% discount provided to women passengers. Additionally, HRTC follows the state government’s pay scale and has implemented the old pension scheme, further increasing its financial obligations.
HRTC plans to expand its fleet to meet public transport demands despite its financial woes. The corporation is set to acquire 315 electric buses, 250 diesel buses, over 20 Volvo buses, and approximately 150 Tempo Travellers. However, the feasibility of these purchases remains uncertain given the ongoing financial constraints.
The latest financial disclosures raise serious concerns about the sustainability of HRTC’s operations. While government grants provide temporary relief, long-term solutions are needed to address mounting losses and ensure the viability of public transport services in Himachal Pradesh.
