Karnataka RTC suffers highest-ever loss in a decade
The Karnataka State Road Transport Corporation (KSRTC), one of the premier State transport undertakings in the country, has suffered a loss of Rs. 177 crore during 2016-17, the highest in the past decade.
It posted a profit of Rs. 50.95 crore during 2015-16, while in the preceding two financial years it incurred a loss of Rs. 43.49 crore and Rs. 75.55 crore, respectively. Between 2006-07 and 2012-13, the corporation earned profit successively.
KSRTC attributed this loss mainly to increased wages of employees, which cast an additional burden of about Rs. 102 crore. Corporation’s Managing Director S.R. Umashankar told that increase in diesel price too had an impact on the cost of operations.
KSRTC General Manager (Operations) K.S. Vishwanath said the corporation had deployed over 360 buses for city operations in many cities and towns under its jurisdiction during the year. The operations, generating about Rs. 20 income per km as against Rs. 32 cost, are yet to stabilise. The mileage of these new buses too is low thereby enhancing the cost of operation, he said. Besides, illegal operation by private operators, both on long-distance and short-distance nationalised routes, too is denting revenues of KSRTC, Mr. Vishwanath added.
Rationalisation
The corporation has been rationalising its operations to cut down the cost and has reduced over 300 schedules which were considered to be excess. Another 450 services, which were doing non-scheduled operations too have been cut, Mr. Vishwanath said.
Balehonnur-based consumer rights activist Shankaranarayana Bhat, who is espousing the cause of RTCs, alleged that slack in administration too is the reason behind the losses besides illegal operations by private operators.
Mr. Bhat told that lack of discipline in operation of KSRTC services with erratic timings inconvenient to passengers was another reason for the losses. Services in excess of the demand are deployed in prime sectors like Hassan, Shivamogga and Mysuru, ignoring mofussil areas, which could have contributed substantial revenue, Mr. Bhat added.
Source – http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/ksrtc-suffers-highest-ever-loss-in-a-decade/article19484266.ece
