Bleeding state transport Corporations out of the red, register profits - The New Indian Express

Bleeding state transport Corporations out of the red, register profits

Published: 24th October 2013 09:48 AM

Last Updated: 24th October 2013 09:49 AM

State-owned transport corporations, which were on the brink of collapse in May 2011 because of the administrative inability of the previous DMK regime, have turned profitable following proactive measures taken by the AIADMK government, Chief Minister J Jayalalithaa said  here on Wednesday.

These corporations have started earning profits on many counts, including advertisements on buses, courier services and by running motels on highways. The State government undertakings have, so far, netted an income of Rs 33.24 crore.

Speaking at a function to flag off 610 new buses for various parts of the State and 50 small buses for the metro, the Chief Minister said, when the AIADMK government assumed office in May 2011, the accumulated losses of the State-owned transport corporations stood at a whopping Rs 6,150.95 crore, and even retirement benefits of employees were kept pending. Above all, salaries could not be paid.

“But, I took many constructive steps to revive the transport corporations by extending financial assistance and toning up the administration. Steps have been taken to purchase 6,000 new buses at a cost of Rs 1,026 crore, of which, 3,501 have been bought and are being operated. Further, 483 buses with chassis and engines that are in good condition have been refurbished,” Jayalalithaa said.

These efforts have borne fruits with the corporations posting Rs 28.13 crore profit from advertisements on buses, Rs 4.67 crore profit through running motels on highways and Rs 44.21 lakh from the courier service.

The State government had provided Rs 200 crore to the corporations to cope with the Centre’s move to continuously increase the price of diesel. In the current year too, Rs 400 crore was allocated for the purpose. 

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