Memorandum submitted by ABGP to the Chief Minister of Tamilnadu to regularize Auto fare

                                                                                                                                                             Date: June 28 , 2013

To

Honourable Chief Minister, 

Secretariat, Chennai- 600 009.

Forwarded Through: Chief Minister’s Special Cell, Fort St.George, secretariat, Chennai- 600009.

Respected Madam, Sub: Akhil Bhartiya Grahak Panchayat (ABGP) Submission of a Memorandum with appeal signed by 5000 public requesting the Hon’ble Chief Minister

1. To Regularize Auto Rickshaw Fare at Chennai, to introduce a system which will fix the Auto fare according to changes in price of fuel, Introduction of Rate Card showing the subsequent revised auto fares according to changes in fuel price and strict enforcement of Rules and Regulations for Auto Rickshaws to charge fares as per meter –which is not tampered and as per Rate Card.

2. to involve Transport Department, Auto Rickshaw Unions, Public Welfare Associations and Consumer Forums in the process of formulating the policy and in fixing Auto Fares at Chennai. 

3. To establish Public Help line services in connection with Auto Rickshaws to guide and Register complaints of public against Auto Rickshaws and to take immediate action against erring Auto Rickshaws drivers.

We wish to introduce ourselves as AKHIL BHARTIYA GRAHAK PANCHAYAT (ABGP): An All India Consumer Movement started in September 1974.It has , All India Registration No: S/9194 Delhi. ABGP is now having its branches in 36 States with 520 consumer awakening centers’ in 180 Districts.

In a modern globalised world, aspirations are unbridled and ambitions are high. Therefore, it is incumbent on a democratically elected government to provide the road map to channel these aspirations and ambitions to their ultimate realization. People in the State has a legitimate expectation that their quality of life should be as good as what is found in any developed economy.

Under the circumstances, we feel Happy to approach and appeal the Honourable Chief Minister of Tamil Nadu whose endeavor is to ensure “all benefits to all people”. The goals and themes of the Vision 2023 - substantial increases in incomes through generation of fruitful employment, improvement in the quality of life through provision of high quality infrastructure and services, focused growth of sectors, where the State has a competitive advantage and above all, peace, prosperity and protection of the vulnerable.

Transportation plays a vital part in the socio and economic development of a country / society. Tamil Nadu Transport Corporations have a good network of buses connecting places all over Tamil Nadu, Important places in Neighbouring States and above all Town buses catering to the needs of millions of public. However due to vast development and last minute connectivity public need other transport facilities also. One such facility is Auto Rickshaws. Auto Rickshaw drivers can be called “public servants”, for they assist in the transportation of people from one point to another within the city and in its suburbs. They carry a number of commuters to their destinations day in and day out. Being a vital provider of last-minute connectivity, the autos are an integral part of the city’s transport system

The last time Auto Rickshaw fares were set in the city was in 2007 when the price of petrol was Rs.45.62 per liter. Since 2007, when the price of petrol was Rs.45.62 per liter, neither has the fare structure been revised nor has action been taken against those who do not use the meter. This came after 13 years, when it was set in 1994. 

Further, it is difficult for the Auto Rickshaw drivers to secure loans from Banks. Hence, they turn to private moneylenders who charge exorbitant rate of interest and hence to meet the repayment obligations and to take care of the family requirements they overcharge. Further, many auto drivers don’t have an insurance. The need of the hour, therefore, is to come to a consensus – an accord on not only fixing auto fares that takes into consideration all seminal factors such as waiting time, time spent and fuel consumed in navigating through heavy traffic to reach the destination, lack of parking spaces, fluctuating prices of fuel and costs of living etc., but also the role played by the media in the portrayal of the actual image of the ostracized auto-rickshaw drivers of Chennai. With no form of social security or a legal body protecting the interests of the 

drivers of Auto Rickshaws, policy reforms and policy implementations are of high Priority to remedy the situation, to eliminate the malady faced by a significant segment of the society. 

At this juncture ,Tamil Nadu Government‘s decision to allow fresh auto-permits has been a good move in the long run in reducing the prices of auto permits in the Grey market. This brings down the capital cost of the drivers and also would encourage a new generation of auto drivers to take to the business

According to the Motor Vehicles Act, the meter fixed in an Auto Rickshaw cannot be tampered/ or calibrated without the consent of the government. Chennai Legal Auto Fares is Minimum Rs 14.00 (2 Kms) and subsequent every km Rs 7.00. However, the City is universally disliked for its lawless Auto Rickshaws, an unregulated Auto Rickshaw sector to extend its grip on the travelling public. Auto Rickshaws are a blemish on Tamil Nadu’s reputation. Their fleecing the commuters during rainy days, festivals, days of strike, procession and their use of uncivilized language cannot be justified on any account. 

· In the absence of proper metered fares, the system of "pre-paid" Autos / Share Autos/ Call taxies have come into operation. Transport Department’s decision to run MTC, Chennai buses inside Chennai Central Railway Station premises, Egmore Railway Station Premises (EVR Salai side) and Chennai Air port Arrival Lounges helped the commuters a lot. 

· For the last couple of months Print and Electronic media, Civil Societies and even Supreme Court Of India has taken steps to bring a solution to the long pending vexed problem of the public which is acceptable to all concerned.

· Now, it is the most appropriate opportunity for the government to revise the fare structure and keep it dynamic enough to automatically upgrade with fuel price hikes. Under the circumstances the auto drivers will be ready to charge by the meter provided the government is revising the auto rates fairly. At the time of revision of the fare, the government has to consider that the majority of the Chennai’s trip length is short distance, i.e. < 5Kms.If the minimum fare and subsequent Km fare is not fixed suitably, it will be a burden for the commuters and will also take the ridership numbers down for the drivers and lead to a downward spiral for the business. Under the circumstances, the ideal position would be for the driver to be able to do 125 kms of driving per day.

Hence, we are submitting (Attached) two cost analysis sheets (one for owned driven autos and the second one for autos driven on, per day rental basis) which detail the working cost of an Auto Rickshaw .This indicates the cost to run a distance of one KM, which is also the justified auto fare per Km. As a responsible All India Consumer Movement, ABGP appeals to Honourable Chief Minister 

(A). To Regularize Auto Rickshaw Fare at Chennai, as follows:

1. Minimum Fare : Rs.22/= for first two Kms.

2. Fare above minimum fare: Rs.11/- per Km.

3. Waiting charges per hour: Rs.25/=. Minimum 15 minutes are charged.

4. Luggage charges : Only big bags / suitcases are to be charged.

5. Night timings : 11.00PM to 5.00AM.

6. Night Charges : 25% extra.

To introduce a system which will fix the Auto fare according to changes in price of fuel, Introduction of Rate Card showing the subsequent revised auto fares according to changes in fuel price and enforce Auto Rickshaws to charge fares as per meter –which is not tampered and as per Rate Card.

(B) To involve Transport Department, Auto Rickshaw Unions and Public Welfare Associations and Consumer Forums in the process of formulating the policy and in fixing Auto Fares at Chennai. 

(C) To establish Public Help line services in connection with Auto Rickshaws to guide and Register complaints of public against Auto rickshaws and to take immediate action against erring Auto Rickshaws. 

Thanking you,

Yours faithfully,

M.N.Sundar M.K.Balasubramanian

ABGP-Tamil Nadu Coordinator ABGP, National Council Member &Chennai Coordinator.

Encl: 3

Cost sheet to find per KM fare for Auto Rickshaw at Chennai (Owned) (Amt. in Rs.)

Capital / Running cost 

Per Month 

Per day 

Cost Of New Auto (Basic, Insurance, Regn. & Road Tax and Meter) 

183450.00 

3057.50 

117.60 

Permit, driving licence,public badge and FC 

1290.00 

107.50 

21.73 

Cost at start line-(Fixed) 

139.33 

Cost of petrol(28.06.2013) 

69.39 

Oil -100 ml 

2.30 

Total Fuel Cost 

71.69 

Auto mileage / Per liter 

22 

Kms driven / Per day 

125 

Fuel usage per Day 

5.68 

Cost on fuel 

407.20 

Maintenance Cost 

1000.00 

38.46 

Salary 

180000 

15000.00 

576.93 

Earnings per day(Optimum) 

1161.92 

Per Km fare (*Empty running without passenger is assumed at 10% of 125Kms. Hence, for calculation 125-12.50=112.50 Km is taken. 

10.33 

Assumptions: (1) Baja Auto 4 Stroke 305 D LPG –Self start Price with top fixing –Total Rs.183450/= Calculation based on optimum utilization of Auto for 5 Years.

(2) Cost of Permit, Driving license, public badge, FC and petrol and Oil is as on 28.06.2013

(3) No of working days taken as 26 out of 30 – Weekly one day for rest.

(4) Auto mileage varies from 20 -25 Kms per liter depending on traffic, road conditions etc. Suitable average of 22 Kms per liter taken.

(5) Normally autos are driven for 10-12 hours and covering around 125 Kms.

(6) Salary or Subsistence is considered at Rs.576.93/= per day and Rs.15000/= Per Month. *Once the autos drivers are not choosy in selecting the passengers according to their destinations, there will be continuous demand for autos.

Cost sheet to find per KM fare for Auto Rickshaw at Chennai (Rental Basis)  (Amt. in Rs.)

Capital / Running cost		Per Month	Per day
Cost Of Auto-On Daily Rental			150.00
Cost of Permit, Driving Lincense,Public Badge and FC	1290.00	107.50	21.73
Cost at start line-(Fixed)			171.73
Cost of petrol(16.02.2013)	69.39
Oil -100 ml	2.30
Total Fuel Cost	71.69
Auto mileage / Per liter	22
Kms driven       /   Per day	125
Fuel usage per Day			5.68
Cost on fuel			407.20
Maintenance Cost		1000.00	38.46
Salary	180000	15000.00	576.93
Earnings per day(Minimum)			1194.32
Per Km fare (*Empty running without passenger is assumed at 10% of 125Kms.Hence, for calculation 125-12.50=112.50 Km is taken.			10.62

Assumptions:1) Auto obtained on rental basis at Rs.150/= per day.

(2) Cost of Permit, Driving license, public badge, FC and petrol and Oil is as on 28.06.20

(3) No of working days taken as 26 out of 30 – Weekly one day for rest.

(4) Auto mileage varies from 20 -25 Kms per liter depending on traffic, road conditions etc. Suitable average of 22 Kms per liter taken.

(5) Normally autos are driven for around 10-12 hours per day, covering around 125 Kms.

(6) Salary or Subsistence is considered at Rs.576.93/= per day and Rs.15000/= Per Month.

*Once the autos drivers are not choosy in selecting the commuters according to their destinations there will be continuous demand for autos.