Women SHGs to buy and hire out buses to TGSRTC

The government is contemplating to rope in SHGs for operating buses, particularly in rural areas and on routes where there are inadequate or no bus services.

Hyderabad: The Telangana government has taken another step forward to financially empower women Self Help Groups (SHG) by deciding to provide bank loans to enable these groups to purchase buses and give it for hire to the Telangana State Road Transport Corporation (TGSRTC).

The government is contemplating to rope in SHGs for operating buses, particularly in rural areas and on routes where there are inadequate or no bus services.

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On an experimental basis, RTC has decided to allocate hired buses to women’s associations in Mahabubnagar and Karimnagar districts. Discussions were also recently held on the procedures for allotment of RTC rented buses to women’s groups.

It was also decided to purchase 100 to 150 buses through these SHGs in the first phase and also set up a separate system for the RTC management for the same.

The government will take a final decision after preparing a comprehensive report including the cost of purchase of RTC buses, revenue generated, management cost and other factors and submitting it to the government.

Sources said the move is expected to help improve the economic condition of weaker sections. A proposal to reduce the interest rates on the debts of RTC is also being considered.

It is learnt that government is preparing an action plan in association with some SHGs to provide loans for purchase of buses and operate them with focus on rural areas.

While the SHGs would contribute some percentage of margin money, the remaining amount would be financed by the banks. The profits would be shared by the SHGs concerned.

Authorities said the RTC management was contemplating to acquire more buses to meet the increased passenger rush in view of the free travel for women scheme.