Road transport corporations’ revenues to contract: Report
   Date :17-Sep-2020

road transport corporatio
 
 
 
Business Bureau :
 
Revenues of road transport corporations will contract by 35-40 per cent in the current fiscal due to the coronavirus pandemic-induced challenges, rating agency ICRA said on Wednesday. The complete shutdown of operations due to COVID-19 from March 23, 2020 and the subsequent extension of the lockdown across the country have resulted in significant financial losses for the Road Transport Corporations (RTCs), it said in a statement.
 
According to ICRA, the most significant challenge ahead for the Road Transport Corporations after the lockdowns are fully lifted would be to increase passenger movement while containing the spread of the virus, through various measures like regular sanitisation of the buses and provision of protective gear for the staff.
 
“As per ICRA’s estimates, measures, including buses operating with a cap of 50 per cent occupancy level and the perceived risk of travelling in a public bus by passengers at large, will lead to a revenue contraction of 35-40 per cent in FY2021 for the sector,” the statement said. ICRA many RTCs would need financial support from the respective State Governments.