Download - The white elephant -KSRTC

THE WHITE ELEPHANT: KSRTC -Sneha Baby Intern 1 Centre for Public Policy Research

http://blog.ksidc.org/wp-content/uploads/2013/02/KSRTC-Jnnrum.jpg

INTRODUCTION

KSRTC is the Kerala's main source of public transport.

KSRTC has the monopoly over the nationalised routes.

The state govt has reserved 31 routes exclusively for the KSRTC but still its running on losses.

At present KSRTC is hit with a huge financial crisis.

The question arises for how long govt can aid KSRTC?

2 Centre for Public Policy Research

HISTORY

Began as the Travancore State Transport Department.

Started on 20th September 1937 with 33 buses

KSRTC established on 15th March 1965

Converted into an autonomous corporation on 1st April 1965.

Possessed a fleet of 901 buses 51 lorries and 29 other vehicles and 661 schedules.

Headquarters situated in Thiruvanathapuram.


TODAY

Corporation has 5567 schedules and 6132 buses in March 2013.

The average earnings per km (EPKM) works out to round about 28.52

Average earnings per bus (EPB) works out to 9370

Average number of passengers transported a day is 3.145 million.

No: of employees is 30738 (as on mar ‘13)


Transport market share


LOOKS INTO…

Problems and its contributing factors

Solution and the revival of KSRTC

Fund flow from govt to KSRTC

Future of KSRTC


Problems faced by the KSRTC :

Lack of management and red tapesam in the organisation

operational inefficiency

ageing fleet: Out of the 5803 buses of KSRTC 1672 buses are aged

above ten years.

miss-behaviour of employees and the rash driving of KSRTC drivers

competition from private players

hike in diesel prices

unpaid loans

unpaid pensions


high bus-staff ratio ( 5.012)

running of buses in non profitable routes

flaws in concrete decision making and implementation

no back up for the buses in workshops or not functioning which leads

to the cancellation of bus schedule

bureaucratic and political control over the KSRTC


SOLUTIONS

Increase operational efficiency

Decentralisation of the organisation

R& D to bring new developments in KSRTC

Provide training and incentives to the employees

Govt support to pay off the debts

Technological up gradation

Increase non conventional source of revenue

Conversion of KSRTC into CNG


Based on provisional figures, it suffered loss of Rs. 148.28 crore in 2008-09.

The accumulated losses and borrowings of the Corporation stood at Rs. 2,085.98 crore and Rs. 831.75 crore as on 31 st march 2009.

The overall fleet utilisation of the Corporation marginally increased from 79.31 per cent in 2004-05 to 79.60 per cent in 2008-09, which was less than all India average (AIA) of 92per cent.

The overall vehicle productivity of KSRTC buses at 259 kilometres per day per bus in 2008-09 was less than the AIA of 313 kilometres.

The passenger load factor stood at 66 per cent during 2008-09, which was higher than AIA of 63 per cent.

Manpower and fuel constitute 74.68 per cent of total cost. Interest, depreciation and taxes account for 16.18 per cent as on 31st march 2009


Fleet Utilisation

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2004-05 2005-06 2006-07 2007-08 2008-09

Fleet Utilisation (%)

All India Average (%)


Manpower cost of the Corporation was Rs.10.02 per effective KM which was higher than the AIA mainly due to implementation of pension scheme to the employees without creating separate fund.

The Corporation did not attain AIA in respect of fuel efficiency. Consumption of fuel in excess of AIA resulted in excess consumption of 10.58 crore litres of fuel valued at Rs. 339.55 crore during 2004-09.

the percentage of cancellation of scheduled kilometres increased from 9.49 per cent to 22.56 per cent in 2007-08 and decreased thereafter to 14.42 percent.

Over age buses and shortage of staff were the major reasons for higher percentage of cancellation besides planning of schedules without addition of sufficient buses.

Due to cancellation of scheduled kilometres for want of buses and crew, the Corporation was deprived of contribution of Rs. 238.75 crore during 2004-05 to 2008-09.


Cancellation of Scheduled Kilo meters (Source : CAG report 2009)

Sl. No Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

1 Scheduled Kms ( in lakhs) 4751.00 5289.53 5358.48 5401.01 5530.03

2 Effective Kms 4299.89 4402.17 4223.06 4182.63 4732.55

3 Kms Cancelled 451.11 887.36 1135.42 1218.38 797.48

4 % of Cancellation 9.49% 16.78% 21.19% 22.56% 14.42%


Cause Wise Analysis

Sl.No Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

1 Want of Buses 204.40 477.13 671.03 554.12 270.03

2 Want of Crew 28.00 93.97 148.29 205.30 55.50

3 Others 218.71 316.26 316.10 458.96 471.95

4 Contribution per km

( in Rs)

8.02 7.78 8.94 9.00 10.47

5 Avoidable

Cancellation

232.40 571.10 819.32 759.42 325.53

6 Loss of Contribution

( Rs in Crore)

18.64 44.43 73.25 68.35 34.08


the scheduled kilometres were not fully operated mainly due to non-availability of adequate number of buses,

shortage of crew

other factors like breakdown, accidents, late arrivals, strikes, planned cancellation on holidays, etc.


The Corporation has about 15.76 lakh square metres of land

As on January 2007the market value of the land was at Rs. 800 crore.

The Association of State Road Transport Undertakings (ASRTU) had prescribed (September 1997) the desirable age of a bus as eight years or five lakh kilometers.

the Corporation adopted the norm of reckoning the life of a bus as 10 years or 10 lakh kilometres of operation whichever was earlier in tune with improved technical parameters of new buses.

the KTDFC has granted `1741.57 Crores to Kerala State Road Transport Corporation

as on 31 st mar 2009.


Disbursing Loan to KSRTC is on the strength of Government Orders

About 90% of total loan is disbursed to KSRTC

KSRTC is making payment on equated daily instalment basis.

Interest Rate being charged on KSRTC Loan is 0.50% over and above the cost of funds of KTDFC.

Repayment of KSRTC Loan is routed through escrow mechanism by means of tripartite agreement executed with SBT/ ICICI/ Indus Ind.


Age –wise details of Vehicles Owned BY KSRTC

2011 -2012 (SOURCE : ECONOMIC REVIEW 2102)

Sl no buses 2011 march 2012 march

1 10 years and above 1641 1672

2 Above 7 years and below 10 years 633 896

3 Above 5 years and below 7 years 687 336

4 Below 5 year 2780 2899

total 5741 5803


Sl. no Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

1 Total buses (at the end of

the year)

4,644 4,688 4559 4893 5115

2 Over-age buses (more

than10 years old)

739 982 1129 1452 1343

3 Percentage of over-age

buses

15.91 20.95 24.76 29.68 26.26

4 R&M Expenses (Rs. In

crore)

97.59 101.65 108.75 118.03 118.09

5 R&M Expenses per

bus(Rs. in lakh) (4/1)

2.10 2.17 2.39 2.41 2.31

6 Percentage of Manpower

cost on R&M Expenses

38.34 34.65 39.99 41.97 41.95


Elements of Cost

Material Cost 41%

Personnel Cost 39%

Taxes 5%

Interest 7%

Depreciation 4%

Miscellaneous 4%

PERCENTAGE


Components of Various Elements of Revenue

Traffic Revenue 98%

Non Traffic Revenue 2%

Chart Title


As part of mobilizing non operating revenue, it is decided to construct shopping complex-cum-Bus Station in major towns of Kerala.

The shopping complex at Kottarakkara and angamaly has already been inaugurated


Major Indicators of Operational Efficiency of KSRTC ( SOURCE : ECONOMIC REVIEW 2012)

Sl.n

o

Items 2010-2011 2011-2012 Increase

/decrease

last year

1 Fleet strength as on 31st mar 5741 5803 62

2 Gross Revenue Earnings ( Rs in Crores 1294.1 1555.27 261.62

3 Gross Revenue Expenditure 1673.42 1902.95 229.53

4 Gross Operating Loss (-)379.32 (-) 347.23 - 32.09

5 No: of Schedules operated as on 31st mar 4611 4795 184

6 Average earning per vehicle on road per

day

7664 8423 759

7 Average earning per Km of Buses

operated

2364 2613 249

8 Average earning per passenger 1036 1142 106

9 Average route length ( Kms) 50.38 50.68 0.29 23 Centre for Public Policy Research

Sl.no Items 2010-2011 2011-2012 Increase/

decrease

10 Average Kms run per bus per day 324.19 317.2 -6.99

11 Average no: of buses held daily 5573 5742 169

12 Passenger carried ( Lakhs) 12363 12579 216


Operational Statistics District Wise ( Source: Economic Review 2102)

0

20000

40000

60000

80000

100000

120000

140000

160000

155503

65232

40893

60303 60203 62228

46478

60845

38638 37289 34554 24115

8986

26054

Earning per Vehicle on Road per day ( in Rs) in 2011-1225 Centre for Public Policy Research

0

10000

20000

30000

40000

50000

60000

55267

21294

12881

19072 17912

19812

12874

17192

9654 9569 9964

7424

2701

7542

Earings per km of buses operated ( Ps)26 Centre for Public Policy Research

Schedule Wise Revenue Details ( source :CAG REPORT 2009)

Particulars Total No. of

Schedules

No. of Schedules

Making Profit

No. of Schedules

not meeting

total cost

No. of

Schedules not

meeting

Variable Cost

2005-06 6511 367

(5.64)

6,144

(94.36)

135

(2.07)

2006-07 5007 169

( 3.38)

4,838

(96.62)

152

(3.04)

2007-08 5489 486

( 8.85)

5,003

(91.15)

125

(2.28)

2008-09 7300 1,148

(15.73)

6,152

(84.27)

121

(1.66)


Buses Owned by KSRTC (source : economic review 2012)

Year Total no : of Buses No: of New Buses

2008 Mar 4893 517

2009 Mar 5115 697

2010 Mar 5402 629

2011 Mar 5741 703

2012 Mar 5803 209


Sl. No Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

1 Effective KMs operated (

in lakh)

4299.89 4,402.17 4,223.06 4,182.63 4,732.55

2 Earnings per KMs 17.77 18.89 20.75 21.13 22.44

3 Fixed Cost per KM 11.84 12.47 12.67 13.96 13.96

4 Variable Cost per KM 9.44 10.78 11.44 11.77 11.61

5 Cost per KM 21.28 23.25 24.11 25.73 25.57

6 Net Earnings per KM -3.51 -4.36 -3.36 -4.60 -3.13

7 Traffic Revenue 750.55 817.21 860.58 868.67 1,045.09

8 Traffic Revenue per KM 17.46 18.56 20.38 20.77 22.08 29 Centre for Public Policy Research