THIRUVANANTHAPURAM: Can the state-run Kerala State Road Transport Corporation, which is bleeding the exchequer dry, be saved before a possible demise eventually, and is the state carrier and its staff caught in a time warp? A comparative analysis of the revenue and expense of KSRTC shows the question can be a real brainteaser.
According to data available with the KSRTC, its operational revenue in January 2020 stood at Rs 204.83 crore when there was no Covid scare. But this nose-dived to Rs 83.12 crore in December 2020. The operational expense of the transport corporation was Rs 257.52 crore in January 2020 while it came down to Rs 152.58 crore in December 2020. The KSRTC needs an urgent Rs 971.91 crore to close its pending payments including to staff.
These figures give an insight into the financial plight of the transport corporation. According to Biju Prabhakar, “the KSRTC cannot move ahead with this style of functioning. It has to streamline its workforce and explore alternate revenue sources to tide over the crisis”.
As part of revival and modernisation, the government announced the formation of a new subsidiary company KSRTC-SWIFT for operating buses funded by the KIIFB. However, employees’ unions have been protesting against the new company and moves to streamline the workforce.
Despite the KIIFB nod for the KSRTC ‘s proposed plan to get 900 CNG buses, the state carrier could buy only 100 buses in the last four years.
However, due to the stiff resistance from employees’ unions, not a single bus was bought. Now, KIIFB has agreed to provide funds for buying 310 CNG buses and 50 electric buses, apart from converting 400 diesel-powered buses to CNG. It has set a rider, though — a new special purpose vehicle should be formed for managing the fleet.
If the buses were to undergo CNG conversion, KSRTC will be able to slash its monthly fuel bills by Rs 20-25 crore. The streamlining of the workforce, computerisation of core sectors, including the scheduling of services, will help the company bring down its losses by Rs 10-15 crore. The new SPV also envisages increasing non-ticket revenues by Rs 25 crore. The new company will be disbanded and merged with the KSRTC after 10 years of successful operation and by then the loss making public sector corporation can be saved, said officials.
But employees’ unions alleged that the company was engaged in efforts to sell off the prime properties of the corporation. So the million dollar question is whether the revival and modernisation plan announced is a square peg in round hole or will the ruling dispensation be ready to bell the ‘big cats’ in the corporation?
the long and the short of it
January 2020 December 2020
KMs run/day 16,03,699 7,73,285
Buses operated/day 4,425 2,611
Operating revenue I204.83 cr I83.12 cr
Non-operating revenue I1.29 cr I50 lakh
Total income I206.12 cr I83.62 cr
Diesel (litre) 1,24,24,329 54,34,562
Expense I257.52 cr I152.58 cr
staff strength
Post Current Required Excess/shortage
Driver 10,506 8,071 + 2,435
Conductor 9,897 8,071 + 1,826
Ministerial staff 1,061 1,121 - 60
Mechanic 4,276 1,793 + 2483
Others 323 364 - 41
Store 231 210 + 21
Supervisory staff 1,658 1,243 + 415
Higher division officers 162 151 + 11
Total 28,114 21,024 + 7,090