Kerala State Road Transport Corporation (KSRTC) with a recent hike in diesel prices is facing a bleak future unless effective steps are taken immediately. The recent crisis is a wakeup call for the state government as well as KSRTC’s management. When oil companies fixed diesel prices for bulk consumers at Rs 10 higher for each litre of diesel, compared to the open market, it effectively meant a loss of almost Rs.15 crore to the KSRTC every month.
Cabinet meetings followed cabinet meetings but no effective decisions have come forth. Except an announcement that Rs.28 crores was being allotted to KSRTC as an interim measure. Subsidising the inefficiency of a public utility with public money is certainly an easy way out, after all the public would have to cough up the amount at some later stage. A central subsidy was asked but easily sidestepped by the men in Delhi. The company on its part cancelled services instead of looking at ways to counter this. Was cancelling services the way out?
If you take the capital city, far flung places like Kattakada, Neyathinkara are severely affected by cancellation of services. An elderly woman from Kattakada aired her anguish, “It was not a problem to get a bus to my area but now with this crisis it is difficult not only for me but many in my area are finding it difficult to find a bus to reach home.” This is true across the state.
Should the people rescue the company by paying the additional fare? Or brave cancelled services? Shouldn’t private operators be told to operate at least some extra services to remote areas? But who will ask them?
Former transport minister Mathew T Thomas who has handled this department adeptly was quick in responding. “It is the state government’s weakness and bad management by KSRTC that has led to this crisis. The government has not able to find a solution for many days now,” he said.
Let’s take the case of Indian Oil, a PSU which has been supplying fuel to KSRTC since its inception in 1965. IOCL is the sole provider of diesel for KSRTC for the past 48 years with uninterrupted supplies across the State. Indian Oil has come to the rescue of KSRTC on innumerable occasions in the past too whenever the state run transport corporation has run into rough weather.
Can’t KSRTC look for a tie up with their loyal benefactor for supplying fuel through Indian Oil retail outlets across Kerala? This will ensure that KSRTC’s fuel burden is lessened by Rs.15 crores every month and the public hardships are quelled immediately. IOC has over 800 outlets in Kerala alone and that too even in far flung areas. The government can breathe easy too.
Look northwards and one can see that Delhi Corporation has switched to CNG buses. Successful and cost effective. This can be adopted here so that the dependence on diesel can be reduced. Mathew T Thomas said, “CNG buses can make a difference but huge investments are needed and it is not possible during this crisis. But in the coming days this should be seriously thought over as an option.”
The KSRTC management, however, seems to be quite ordinary when it comes to handling a crisis. When Yentha contacted the general manager of KSRTC his reply was that they were waiting for a solution from the state government. After the meeting with central ministry state transport minister Arayadan Mohammed announced it was not a favourable stand from the centre in giving a subsidy to KSRTC.
CNG may be a long term solution but immediately a tie with IOC or something similar can make a huge difference to the public. With fuel prices subject to changes in world demand and supply, it will be wise to look at a solution at the earliest. Would KSRTC rise above the ordinary to deliver that?
Source: Yentha