In what may lead to some relief for commuters, the state government has decided to keep the PMA Hakeem committee report in abeyance and establish a new mechanism to decide the fares for taxis and auto-rickshaws in Mumbai Metropolitan Region (MMR). Transport minister Diwakar Raote said that the decision to hike fares, which had led to anger among commuters, was based on wrong valuation of input costs.
A new panel, which will look into the Hakeem committee recommendations and evolve a fare fixation formula, will have six months to submit its report. But, till the time this is done, the state has not stayed the hike suggested by the Hakeem committee. However, it will be applicable for taxis and rickshaws from June 1 only after their meters are calibrated.
The Maharashtra government in 2012 appointed a one-man committee under Hakeem, a retired secretary to the Government of India, to fix a formula for determination of taxis and auto-rickshaw fares. The committee was supposed to determine the various cost elements and recommend a fare structure based on this.
On May 11, the state authorities had hiked fares of auto-rickshaws, black-yellow taxis, cool cabs and fleet taxis for the MMR from June 1 with the minimum fare for the initial 1.5km being increased by Re1 for autos and taxis.
"I received complaints from people about the hike in rickshaw and taxi fares," said Raote admitting that "serious issues had come to the fore" after consultations.
Raote said it seemed that the system had been designed in such a manner that a fare hike was obvious and added that the valuations of input costs like those of a comprehensive insurance, which few vehicles had, were over estimated. He also pointed out that while the panel had presumed that loans had been taken at a rate of 16% for taxis and 17% for auto-rickshaws, the actual rate was 12.5% for taxis (if no guarantor was available) and 13.5% for rickshaws. Moreover, these vehicles in Mumbai and Thane run on CNG which is around 20-25% cheaper than petrol. The income from advertisements put up on taxis was also not considered. "The Hakeem committee hiked fares by 50% in three years," noted Raote.
Over valuation
Transport minister Diwakar Raote said the over-valuations by the Hakeem committee were reflected in the hike in fares. "Though the fare is to be hiked if the costs (of the trade) increase by 50 paise or more per km, the (system was) designed in a manner that this would be attained," charged Raote. "Hence, we have decided to set aside the Hakeem committee and set up a new committee in this regard which will be headed by a retired High Court judge and comprise of one financial expert and a transport expert like a retired transport commissioner or additional transport commissioner," said Raote.
However, the Hakeem panel's hike will be in place till the new recommendations come in said Raote, adding that this "temporary" increase would be applicable only after the meters were callibrated by taxi and rickshaw drivers. "(Later) the fares will rise or decrease based on the suggestions of the new committee," he added.
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