The Hindu Business Line : Movers, but not shakers

The transport sector in Tamil Nadu is an outstanding example of the policy makers’ predicament. At a time when all the neighbouring states have raised the fares of transport services of their undertakings, Tamil Nadu has desisted. Economists may debate whether that is advisable or not. But the political establishment desires to keep the pricing of essential services – such as transportation – under control, until such time as prosperity of people rises to such an extent that a hike will not hurt. But what to do till then? Who will foot the loss-bills? These certainly are questions that beg answers.

Yet, it is palpable that the state government has taken steps to address the problem through the route of cost control rather than price rise. For instance, as a step towards streamlining the operations of State Transport Undertakings leading to reduction in the administrative overhead expenses and avoidance of wasteful competition in the operation of services among the Corporations, the Government amalgamated 21 Transport Corporations into 7 Transport Corporations. “The present arrangement of Transport Corporations in the State is compact and efficient,” observes Mr K.N. Nehru, Minister for Transport.

In 2007-08 until February, the state transport undertakings had 19,388 buses under them. They operated 253.83 crores kilometres during 2007-08 (up to February’08) with an increase of 25.78 crore kilometres over the previous year 2006-07 (up to February’07). Single day highest collection by all STUs together made on 11-2-2008 is Rs 15.29 crore.

Fleet strength

The fleet strength of all State Transport Undertakings on 31-5-2006 was 17104. The fleet strength has increased to 19388 as on 29-2-2008 in spite of replacement of 3997 overaged buses by all State Transport Undertakings during this period. Thus, the overall fleet strength has grown by 2284 buses, the percentage of growth being 13.35 in the last 1½ years.

The State Transport Undertakings have been consistently bagging national awards in achieving the best physical parameters. The Union Planning Commission, while reviewing the performance of Tamil Nadu State Transport Undertakings, has commented that Tamil Nadu State Transport Undertaking is one of the best amongst the various State Road Transport Undertakings in the country. Especially, the best performance is in fleet utilisation, kilometres efficiency, occupancy ratio and fuel efficiency. It must be added that this performance has been achieved under difficult circumstances.

New routes

During the year 2007-2008, as many as 614 new routes were introduced “in response to the public demand.” The MTC- Passenger’s meet was organised by the Metropolitan Transport Corporation Limited, in December 2007 at Chennai. A large number of passengers and others participated. The introduction of new type of buses was widely welcomed by the public. A total number of 1,188 suggestions / representations were received from the public / people’s representatives. Based on these representations 36 new routes and 42 additional services in the existing routes were introduced in Chennai in the first phase.

And that is how you see bright new, air-conditioned buses plying in Chennai—a major source of comfort to passengers.

One hopes that by providing a value added service and charging more of those who could afford, the transport undertakings might crack the conundrum of meeting their rivalling social and economic objectives. This is really the need of the hour because, despite good performance in the physical parameters, which have been appreciated by the Union Planning Commission, the financial conditions of the State Transport Undertakings have come under considerable pressure in the absence of revision of fare.

Oil prices

Rising oil prices is big problem. The expenditure on consumption of diesel for the STUs was Rs 1,725 crore in the year 2006-07. The price of diesel oil was increased with effect from 15-2-2008. This expenditure is likely to go up further during the current year 2007-08 to Rs 1,860 crore.

The STUs have been trying to achieve savings in fuel consumption. There is considerable improvement in use of HSD and the KMPL of HSD oil consumed has improved from 4.96 (up to February‘07) to 5.02 (up to February‘08). The approximate savings on account of improvement in KMPL is around Rs 20.91 crore (up to February’08). Similarly engine oil consumption per 10000 km has come down from 5.85 litres to 4.71 litres (up to February’08).

Wage pact

The period of Wage Settlement to workmen of Transport Corporations was brought down from five years to three years and the new Wage Settlement was signed on 6-2-2008 and made effective from 1st September 2007. The Wage Settlement is effective for three years. The additional financial commitment in this regard will be Rs 205 crore per annum. Further, due to recent diesel price hike with effect from 15-2-2008, the loss to the State Transport Undertakings is up by Rs 5.60 crores a month (Rs 67 crore annually). Due to the increase in the establishment and operational costs especially the diesel cost, which comprises about 38% of the total cost and the fare per kilometre remaining unrevised for last six years and hence being the lowest in the country, the overall expenditure of the STUs has increased. The anticipated loss for the year 2007-08 will be Rs 407.06 crore, against the actual loss of Rs 281.81 crore in 2006-07.

Because of the losses, the state transport undertakings were faced with outstanding liabilities of Rs 1,077 crore as at the end of February 2008.

Fleet modernisation

Loss or not, there is no escaping from the need to expand and modernise fleet. During the year 2007-08 the Government provided financial assistance of Rs 277.20 crore to State Transport Undertakings for purchase of new buses. So far 3754 new buses have been brought in to service up to February 2008.

In January 2008, 1,094 new buses of all state transport undertakings were pressed into service.

In the current financial year 3500 new buses will be purchased with financial assistance of Rs 330 crore from the Government.

The fare per kilometre in Tamil Nadu is the lowest in the country.

The fare in Tamilnadu has not been revised since December 2001 in the interest of the travelling public, though the cost of diesel and establishment cost have increased substantially.

Chennai sets example

A view of a bus terminus in Chennai

Chennai, the capital of the state, has been fortunate to be taken up as the first for modernisation.

The Metropolitan Transport Corporation (Chennai) Ltd has proposed to implement Jawaharlal Nehru National Urban Renewal Mission (JNNURM) under which a sum of Rs 1,300 crore will be spent for improvement of passenger transport in Chennai city in a span of 7 years.

Construction of New depots / Terminals, improvement of infrastructure in existing depots/ Terminals, modernisation of passenger information system by installing Digital Board in Bus terminals to display the arrival and departure timings of bus service, monitoring bus movement by “Global Positioning System” are proposed under this project.

Tracking vehicles

Already, Vehicle Tracking and Control System (VTCS) has been in operation for last one year in Metropolitan Transport Corporation and State Express Transport Corporation (Chennai – Tiruchi route) whereby the bus movements are monitored on real time basis and arrival of buses at bus stops is displayed in the digital boards put up at bus stops. This pilot project is funded by the Government of India.

It is proposed to extend this facility based on GPS technology to at least 1000 Metropolitan Transport Corporation buses in Chennai City.

Similarly, State Express Transport Corporation has introduced On-line Ticket Reservation System (OTRS) since last year for the benefit of passengers. Under this scheme, a passenger can book tickets from “anywhere to anywhere”.

There are 42 reservation counters spread over the State where this facility has been provided. Extension of OTRS facility to other State Transport Undertakings (except MTC) is under way.

Online booking

In the next step, internet booking of bus tickets will be made available to the public of Tamil Nadu.

State Transport Corporations have introduced Electronic hand-held Bus Ticketing machine, for the convenience of both the conductors and passengers.

Similarly, Metropolitan Transport Corporation (Chennai) Ltd has introduced Yellow Line and Blue Line Deluxe services and Semi–Low Floor bus services to fulfil the demands of the public for faster and more comfortable journey. Introduction of Volvo Air-conditioned Services in Chennai City have been received well by the public, who want more of such services.

Because of introduction of such high quality bus services in Chennai city, people have started switching from two / three wheelers to the Metropolitan Transport Corporation buses.

More facilities

In certain important bus stands and bus stops in Chennai City and other important cities, glow sign advertisement boards have been provided for better security of passengers.

To facilitate inter-transfer service, provision for parking the two wheelers of the commuters at the bus stands has been made. As the operations of Metropolitan and long distance buses have been shifted to the new Chennai Mofussil Bus Terminus at Koyambedu, the Metropolitan Transport Corporation has introduced many buses in new routes to enable the commuters to reach the Koyambedu Bus Stand.

Besides, the operational jurisdiction of Metropolitan Transport Corporation (Chennai) has been extended by 10 more kilometres., i.e., up to 50 km. and Metropolitan Transport Corporation (Chennai) is operating services to placessuch as Maraimalai Nagar, Chengalpattu, Padappai, Thiruporur, Sriperumpudur and Sunguvar Chatram from January 2008 onwards.

These extended services have been well received by the public. They have fulfilled a long-felt need.