Tamil Nadu Revises Auto-Rickshaw Fares After 13 Years, Unions Demand Bus Scheme Regulation

Auto-rickshaw drivers in Madurai have expressed relief following the Tamil Nadu government's decision to revise auto-rickshaw fares after a 13-year hiatus. The last fare revision took place in 2013. The newly issued state government order fixes the minimum fare at ₹50 for the first 1.8 kilometres, and ₹25 for every subsequent kilometre. Previously, the rates stood at a minimum of ₹25 for 1.8 kilometres and ₹12 for each additional kilometre.

Drivers noted that the revision followed long-standing protests and negotiations led by trade unions, including the CITU. Suresh Kumar, an auto driver from the Alangulam stand, stated that the hike would help prevent daily altercations, conflicts, and unnecessary bargaining between drivers and customers over pricing, ensuring a fair price for both parties.

Union representatives and drivers explained that the previous meter rates had become entirely unsustainable due to the rising prices of essential commodities, alongside steep hikes in fuel, Regional Transport Office (RTO) fees, and insurance costs, which severely impacted their livelihoods.

While thanking the administration for the fare revision, auto workers also raised several new demands. They urged the government to regulate the state's free bus travel scheme for women, known as the Vettri Payanam Scheme, pointing to severe passenger drops and losses to their daily income. Drivers suggested restricting the free travel initiative to economically weaker sections rather than extending it to high-earning government employees.

Furthermore, Kanagavel, the district treasurer of the CITU auto union, appealed to the state government to introduce an annual subsidy of ₹10,000 for fitness certificate (FC) renewals. He noted that a similar subsidy of ₹15,000 is currently provided to auto drivers in neighbouring Andhra Pradesh. The union also requested a Deepavali festival bonus of ₹5,000 per driver to be disbursed through the unorganised workers' welfare board.

"The revision of public transport fares after more a decade highlights the economic realities faced by individual transport operators dealing with persistent inflation in fuel, maintenance, and compliance costs. At the same time, this development underscores the broader economic challenges that arise when state-subsidized public transport schemes intersect with private micro-enterprises like auto-rickshaws. Balancing public welfare measures with the financial viability of informal transport workers remains a critical policy challenge for sustainable urban mobility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes