TN pvt buses demand annual fare hike, govt seeks public’s view
This would enable automatic, annual or need-based fare revisions based on fuel price rise and other expenses
Image of BMTC buses
CHENNAI: The Transport Department has initiated a public consultation process on the proposed implementation of an annual indexing-based fare revision mechanism for stage carriage buses.
A notification to this effect was issued by the Transport and Road Safety Commissioner following directions issued by the Madras High Court in a judgment dated January 23, in response to petitions filed by the Federation of Private Bus Owners and Bus Owners' Associations from Chennai and Erode.
The petitioners had demanded fare revisions in proportion to rising diesel price and other operational costs, and called for a formal mechanism to adjust fares periodically. The bus fares were last revised in 2018.
Acknowledging the long-standing stagnation in fare adjustments, unchanged since 2018 despite a 36.87% rise in diesel prices, the court told the government to consider setting up a high-level and expert-led committee for the formulation of an indexing method. This method would enable automatic annual or need-based fare revisions, similar to systems in place in neighbouring states like Kerala and Andhra Pradesh.
Acting on the court's recommendation, the state government has constituted an expert committee, headed by the Transport Commissioner, with representation from the Finance Department and the Institute of Road Transport. The committee has been tasked with evaluating cost components and international best practices before submitting its recommendations to a high-level committee composed of senior government officials.
As part of this comprehensive review process, the government is now seeking feedback from consumers, public transport users, and civic groups across the state on the proposed indexing model.
Suggestions and opinions may be submitted to the Principal Secretary/Transport Commissioner at Guindy, Chennai – 600 032, via post, in person, or by email to tc.tn@nic.in. The window for public feedback is open for three weeks from the date of this announcement.
Private operators claim that due to the non-revision of bus fares, they were suffering huge losses every year. There are 4,700 private stage carriage buses in Tamil Nadu, including 1,500 town buses. Noting how the government compensates for the losses suffered by state transport undertakings (STUs), a private operator said it should revise the stage carriage bus fares as per the court order, particularly for the private buses.
Together, the STUs operate 20,508 buses across the state. The average monthly losses suffered by the corporations have increased to Rs 566.25 crore in 2025-26 from Rs 531.74 crore in 2024-25.
