A difficult road ahead for bus corporations

By Our Special Correspondent

CHENNAI, NOV. 24. The State Government has introduced a new clause in the bonus negotiations with a handful of striking transport workers' unions - that it will pay a `special amount' when transport corporations turn the corner and earn profits.

Given the present fiscal and work environment, that seems to be a very difficult proposition. Some of the compact corporations earned profits in the past, but there has been a steady erosion in their financial health, with all of them running up an accumulated loss of Rs. 2,300 crores.

Even now, experts and transport managers feel that it is ``not impossible'' to turn round the corporations. But that will be require the Government to take some hard decisions, as early as possible, so that the turnaround time could be shortened.

Expert committees and financial audits have identified the `grey areas' and weak spots. It was on the basis of one of these reports that the Government has now decided to reorganise the corporations into seven regional outfits. That could make them more viable and also cut down the overheads as well as administrative expenses.

According to a former Managing Director of the erstwhile Pallavan Transport Corporation, who served on some of these expert panels, `partial privatisation' may be the easiest and simplest route.

This could straight away reduce the burden on the corporations without affecting services in any part of the State, he explains. The permits for private companies to operate a limited number of routes could also bring in much needed revenue to the Transport department. Depending on the route and its traffic potential, the fee could be anywhere from Rs. 50,000 to 2 lakhs.

Simultaneously, the corporations must come up with a Voluntary Retirement Scheme to the employees. Those accepting the VRS could easily find a job with the private operators.

Another suggestion made by some of these committees relates to `asset utilisation'. Since the private operators may not readily have the infrastructure for maintenance of their buses, the transport corporations could `lease' or rent their facilities. Separate sections could be earmarked in the workshops and depots for the private operators, and this facility could add to the revenue of the corporations. Similarly, they could be asked to pay for parking of buses at the termini.

For a better upkeep and maintenance of the state buses, a more extensive advertising scheme could be evolved. Advertisers could paint both sides of the buses, as is being done in some countries, leaving enough space for the Corporation to paint its logo and name. Advertising revenue could also help offset its subsidies.

To protect commuter interests, a Transport Regulatory Authority is considered imperative. It will prescribe the fare structure to ensure that private operators do not fleece the public and at the same time, enable the state-owned corporations to adopt a viable fare structure.

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Section  : Southern States
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