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Could the State of Andhra's Finances Make its Women's Bus Pass Move a Double-Edged Sword?

government
Given significant financial constraints, a phased or limited implementation of the free bus pass scheme may be prudent.
Representative image of women riding a bus. Photo: Luke Appleby/Flickr (ATTRIBUTION-NONCOMMERCIAL-NODERIVS 2.0 GENERIC).

Andhra Pradesh is poised to join an exclusive group of states offering free bus passes for women, a progressive measure that is expected to greatly enhance women’s mobility and empowerment. Scheduled for implementation in a month, the initiative also raises critical questions about whether the state’s finances can sustain this and other ambitious welfare programs without overstretching its resources.

In an announcement on Sunday, June 30, Andhra Pradesh’s Minister for Transport, Mandipalli Ramprasad Reddy, confirmed that the state government would soon roll out the free travel facility for women in Andhra Pradesh State Road Transport Corporation (APSRTC) buses. The scheme will be launched from Visakhapatnam, with officials set to visit Tamil Nadu, Telangana, and Karnataka to study the implementation of similar programs in these states.

Other states

Other states’ experiences with similar schemes provide a mixed picture. Delhi, under chief minister Arvind Kejriwal, introduced free bus passes for women in October 2019, a move that has since seen over 100 crore “pink tickets” issued and over Rs 1,000 crore spent on subsidies. This policy has been widely regarded as successful, contributing to increased social mobility and workforce participation among women.

“Since the free bus pass program started, my daily commute to work has become so much easier and affordable,” Sangeeta, a resident of Chennai told The Wire. “I save a lot of money every month, which I can now use for my children’s education. It has given me the freedom to travel without worrying about the cost, and I feel more independent.”

However, it has also resulted in substantial financial burdens, with most State Road Transport Undertakings (SRTUs) running at massive losses, except for Punjab. Issues such as funding shortages, delayed employee payments, and reduced bus routes have plagued these transport services, along with complaints of service quality, including late arrivals and harassment. 

“While public transport is friendly to my pocket, the harassment I’ve faced has been deeply traumatising, which usually overshadows the affordability of the bus. Late arrivals, rude behaviour by conductors, judgmental looks, being denied seats, hostility for using the free travel option, sexual harassment, and verbal abuse are frustrating and discouraging,” Nikita, a commuter from New Delhi, told The Wire

In an attempt to curb this, states like Delhi appointed bus marshals and installed CCTV cameras and push-to-talk buttons on CCTV poles.

What about trans women?

As of now, only Delhi and Tamil Nadu have also included trans women in the scheme. “This policy is a step forward, but it’s disheartening that trans women are excluded in most states. We deserve the same support and opportunities to improve our mobility and inclusion in society,” Priya Kumar, a trans rights activist, told The Wire.

In Andhra, the Andhra Pradesh State Road Transport Corporation (APSRTC) is already grappling with a significant loss of Rs 3,275 crore, including Rs 2,217 crore in loans and Rs 1,058 crore in dues to employees as of 2023. The APSRTC currently operates 10,904 buses, serving approximately 38 lakh commuters daily, of which 15 lakh are women. 

Financial strains

The introduction of free bus rides for women is estimated to cost the state Rs 6 crore per day, potentially reducing the APSRTC’s income by 40%. This could exacerbate existing financial strains, given that the corporation’s current occupancy ratio is 70.08% and punctuality stands at 94.67%.

Despite these challenges, the potential benefits of the scheme cannot be ignored. A report by the Citizen Consumer and Civic Action Group (CAG) highlighted that, in Tamil Nadu, the number of women using ordinary buses tripled within two years of implementing a similar free fare programme. This initiative has provided significant financial relief and increased opportunities for women, allowing them greater control over their mobility and facilitating their participation in educational and leisure activities.

The report further said: “Free bus rides for women have provided substantial financial relief, with many women saving a considerable amount of money every month. On top of that, the program makes it easier for women to pursue new opportunities and counter arguments from family members about the cost of transportation, giving them more control over their mobility and enabling them to travel as and when they wish. For instance, it makes it easier for women to travel to their educational institutions, including supplemental tutoring not covered by student concessions.”

Existing woes

However, it cannot be ignored that the previous government, led by the YSR Congress Party (YSRCP), spent about Rs 4.25 lakh crore on Direct Benefit Transfer (DBT) and non-DBT schemes, leaving the state with a public debt of approximately Rs 4.83 lakh crore. 

As per the Reserve Bank of India’s website, the Andhra Pradesh government recently offered to sell securities worth Rs 2,000 crore through auction to manage its debt. Naidu, in his first month, faces the daunting task of disbursing Rs 4,500 crore to 65 lakh pensioners, alongside an increased monthly pension, which collectively amounts to about Rs 10,000 crore in expenses. Additionally, he must secure approximately Rs 2,200 crore every year to reimburse APSRTC for the free bus rides for women.

Further complicating the financial landscape is Naidu’s promise to complete the greenfield capital at Amaravati, a project initiated during his previous tenure. The project, which originally required a budget of Rs 21,000 crore in 2015, now demands over Rs 40,000 crore. The source of these funds remains unclear.

Given these constraints, a phased or limited implementation of the free bus pass scheme may be prudent.

“Targeting high-demand routes initially and gradually increasing the bus fleet could help manage costs and logistical challenges. Such an approach would allow the government to balance its ambitious welfare goals with the state’s financial realities, ensuring that the benefits of increased social mobility and inclusion for women are achieved without compromising the stability of Andhra Pradesh’s public transport system and broader economic health,” Rajesh Kumar, a public policy consultant from Hyderabad told The Wire. 

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