The Hindu : New Delhi News : Volvo reaps rich profit

Online edition of India's National Newspaper
Thursday, Jul 15, 2004

New Delhi

New Delhi

Volvo reaps rich profit

By Our Special Correspondent

JAIPUR, JULY 14. The air-conditioned Volvo buses, introduced between Delhi and Jaipur in June 2003 are giving a profit to the Rajasthan State Road Transport Corporation (RSRTC), the State Assembly was told today.

In fact the buses, hired on contract by RSRTC for Rs.12.50 per km on a daily run of 600 kms, have helped the corporation to retain its passenger-base on the Delhi-Jaipur route giving a stiff competition to the rail route alternative offered by the prestigious Shatabdi Express, it has been told.

Volvo buses, each making three trips a day, have given a profit of 1.45 crores to the Corporation from June 2003 to May 2004. The highest profit made by them has been in May this year at Rs. 30.86 lakhs and the lowest in November 2003 at Rs. 3.85 lakhs. Compared to this the fleet of Pinkline AC buses of the Corporation fetched a total profit of Rs. 39 lakhs from June 2003 to May 2004, the Government said in a written answer to Babulal Nagar of the Congress.

Before the introduction of the service, one Volvo bus was run on a trial basis by RSRTC for a period of 10 weeks from August 7, 2002. The trial run was highly successful and greatly appreciated by the passengers. The trial run gave an average profit of Rs. 9.15 per km and the load factor increased up to 75 per cent from an average of 61 per cent of the AC deluxe buses which were operating on Delhi-Jaipur route, the House was informed.

The Corporation went ahead with the plan to introduce the Volvos after considering the fact that even if the load factor remained at 61 per cent, the profit per km would come to Rs. 4.92.

The Corporation did not consider buying the buses itself because each of them costs Rs. 47 lakhs. In the present arrangement the private contractor is responsible for the drivers, maintenance, tyres, road tax and insurance while rest of the expenses including special road tax is borne by RSRTC. The Corporation also gives an amount of Rs. 7.18 per km towards diesel expenses to the private party.

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