The Hindu : Tamil Nadu News : Transport corporations still incur heavy losses

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Monday, Apr 14, 2008
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Tamil Nadu

Tamil Nadu

Transport corporations still incur heavy losses

Special Correspondent

CHENNAI: State transport undertakings continue to incur heavy losses despite their good performance.

According to the Transport Department policy note tabled in the Assembly recently, the anticipated loss for 2007-08 will be Rs.407.06 crore against the actual loss of Rs.281.81 crore in 2006-07.

The Planning Commission appreciated the good performance of the corporations as they were consistently bagging national awards for achieving the best physical parameters. The Commission said the State Transport Undertakings were one of the best among the various corporations in the country, especially in fleet utilisation, kilometre efficiency, occupancy ratio and fuel efficiency. But, they were under considerable pressure without any revision in fare.

The fare per kilometre is the lowest in the country. It has not been revised since December 2001 though the cost of diesel and establishment cost have increased substantially. The additional financial commitment due to the revision in the pay of employees is around Rs.205 crore a year. Due to the recent price increase, the diesel expenditure is likely to go up further in the current year to Rs.1,860 crore as against Rs. 1,725 crore last year. With the continuous loss, the corporations are facing outstanding liabilities of Rs.1,077.25 crore.

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