The Hindu : Front Page : More autonomy for State road transport undertakings likely

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Monday, Sep 15, 2008
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More autonomy for State road transport undertakings likely

S. Anil Radhakrishnan

THIRUVANANTHAPURAM: The Centre is considering more autonomy for State road transport undertakings, such as the Kerala State Road Transport Corporation, to make them self-sufficient and perform as an efficient mass transport system, official sources say.Entrusting them with powers to fix fares and to raise money by issuing bonds and other instruments are the other proposals being considered by the Union Ministry of Road Transport and Highways.

The steps are based on a report submitted by a high-level committee headed by the former Indian Institute of Technology Professor A.L. Agarwal. The committee has recommended that these undertakings be given a free hand to fix fares. Under the Motor Vehicles Act, the State governments have the power to fix fares. In Kerala also, it is the case. The State road transport undertakings made a total loss of over Rs.2,150 crore in 2006-07. They are not allowed to raise fares in tandem with the rise in the diesel price. Granting more autonomy and power to fix the tariff will help the undertakings that reel under heavy loss.

Of the 60-odd such undertakings, only half a dozen are profit-making. The committee has suggested that the Centre come up with drastic measures for converting the undertakings into profit-generating units. The money generated from the financial market can be used for strengthening bus operations and improving the fleet. Besides, the money can be used for building infrastructure at bus terminals.

‘Excessive concessions’ granted by the undertakings in the name of social responsibility have been pointed out as a major drain. As the government never pays or reimburse the money, almost all State transport corporations face a financial burden.

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