Bhubaneswar, July 18: The state government today hiked the bus fares.

The announcement followed the threat of an indefinite strike in the state by private bus owners from tomorrow. The threat was, however, withdrawn following the government’s announcement.

For the ordinary buses, the fare has gone up by 4 paisa per km, for express, 5 paisa, A/C deluxe bus, 6 paisa and AC bus, 8 paisa per km. Now, a commuter will have to pay 50 paisa per km in an ordinary bus instead of 46 paisa, 53 paisa in express bus instead of 48 paisa, 70 paisa in deluxe bus instead of 64 paisa and 85 paisa in AC deluxe bus instead of 77 paisa.

The cost of city bus service travel is expected to be revised too.

After the state government had hiked the fare, the Dream Sahara team, the operator of 80 town buses in Bhubaneswar, Cuttack and Puri, also demanded a raise in bus fare at the rate of Rs 2.50 per km. At present, the city bus service charges Rs 4 for the first three kilometres and up to six kilometres, its fare is Rs 6.

“We have asked the government to hike the bus fare from July 22. We are incurring a huge loss. The decision will be taken by the housing and urban development department,” said Nishikanta Mishra, president of the Dream Sahara Team.

State commerce and transport minister Sanjeeb Sahu said: “After the Centre had hiked the diesel prices, the bus owners made a demand to increase bus fares. Our technical team had examined the bus owners’ demands following which the state government finally hiked the fares.” Sources said the technical team had recommended fare hike by 6.2 paisa per km for ordinary bus, 6.28 paisa for express, 8.31 pasia for deluxe bus and 10.8 paisa for AC deluxe bus.

Sahu said the private bus owners had demanded 15.35 per cent hike in bus fare as the petrol and diesel prices had been hiked substantially during the last one year. The technical committee, which had looked into the demand, recommended a 13.01 per cent hike.

However, the state government announced a 10.23 per cent hike in fares.

The bus owners were unhappy with the decision.

President of the All Orissa Private Bus Owners’ Association Prakash Mishra said: “The government should have gone by the suggestions of the technical committee. It is really difficult to ply the buses. The state should have hiked the fare by 10 paisa per km.” Association spokesperson Debasis Nayak said: “Following the diesel price hike, the bus owners are incurring a daily loss of Rs 1,600. The cost of mobil per litre has gone up by Rs 45. Both the cost of insurance and chassis of the bus have gone up by 42 per cent.”

While the Orissa State Road Transport Corporation is plying 300 buses, the private bus owners are operating nearly 9,348 buses across the state. “The government has no other way except to agree to the bus owners’ demand. If they stop plying the buses, the transport system will crumble,” said 63-year-old Ramahari Das, a resident of Nayapalli area.

After the state government’s announcement, the auto associations are planning to demand an increase in autorickshaw fare. President of the Auto Mahasangha (association) Sibananda Ray said: “We will discuss the matter soon.”