THE WHITE ELEPHANT: KSRTC
-Sneha Baby
Intern
1 Centre for Public Policy Research
INTRODUCTION
 KSRTC is the Kerala's main source of public
transport.
 KSRTC has the monopoly over the nationalised
route...
HISTORY
 Began as the Travancore State Transport
Department.
 Started on 20th September 1937 with 33 buses
 KSRTC estab...
TODAY
 Corporation has 5567 schedules and 6132
buses in March 2013.
 The average earnings per km (EPKM) works out to
rou...
Transport market share
5 Centre for Public Policy Research
LOOKS INTO…
 Problems and its contributing factors
 Solution and the revival of KSRTC
 Fund flow from govt to KSRTC
 F...
Problems faced by the KSRTC :
 Lack of management and red tapesam in the organisation
 operational inefficiency
 ageing...
 high bus-staff ratio ( 5.012)
 running of buses in non profitable routes
 flaws in concrete decision making and implem...
SOLUTIONS
 Increase operational efficiency
 Decentralisation of the organisation
 R& D to bring new developments in KSR...
 Based on provisional figures, it suffered loss of Rs. 148.28 crore in
2008-09.
 The accumulated losses and borrowings o...
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 2006-07 200...
 Manpower cost of the Corporation was Rs.10.02 per effective KM
which was higher than the AIA mainly due to implementatio...
Cancellation of Scheduled Kilo meters (Source : CAG report 2009)
Sl. No Particulars 2004-05 2005-06 2006-07 2007-08 2008-0...
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 ...
 the scheduled kilometres were not fully operated mainly due to non-
availability of adequate number of buses,
 shortage...
 The Corporation has about 15.76 lakh square metres of land
As on January 2007the market value of the land was at Rs. 800...
 Disbursing Loan to KSRTC is on the strength of Government
Orders
 About 90% of total loan is disbursed to KSRTC
 KSRTC...
Age –wise details of Vehicles Owned BY KSRTC
2011 -2012 (SOURCE : ECONOMIC REVIEW 2102)
Sl no buses 2011 march 2012 march
...
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 51...
Elements of Cost
Material Cost
41%
Personnel Cost
39%
Taxes
5%
Interest
7%
Depreciation
4%
Miscellaneous
4%
PERCENTAGE
20 ...
Components of Various Elements of Revenue
Traffic Revenue
98%
Non Traffic Revenue
2%
ChartTitle
21 Centre for Public Polic...
 As part of mobilizing non operating revenue, it is decided
to construct shopping complex-cum-Bus Station in major
towns ...
Major Indicators of Operational Efficiency of KSRTC (
SOURCE : ECONOMIC REVIEW 2012)
Sl.n
o
Items 2010-2011 2011-2012 Incr...
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...
Operational Statistics District Wise ( Source: Economic Review 2102)
0
20000
40000
60000
80000
100000
120000
140000
160000...
0
10000
20000
30000
40000
50000
60000
55267
21294
12881
19072
17912
19812
12874
17192
9654 9569 9964
7424
2701
7542
Earing...
Schedule Wise Revenue Details ( source :CAG REPORT 2009)
Particulars Total No. of
Schedules
No. of Schedules
Making Profit...
Buses Owned by KSRTC (source : economic review 2012)
Year Total no : of Buses No: of New Buses
2008 Mar 4893 517
2009 Mar ...
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...
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The white elephant -KSRTC

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The white elephant -KSRTC

  1. 1. THE WHITE ELEPHANT: KSRTC -Sneha Baby Intern 1 Centre for Public Policy Research
  2. 2. 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
  3. 3. 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. 3 Centre for Public Policy Research
  4. 4. 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) 4 Centre for Public Policy Research
  5. 5. Transport market share 5 Centre for Public Policy Research
  6. 6. LOOKS INTO…  Problems and its contributing factors  Solution and the revival of KSRTC  Fund flow from govt to KSRTC  Future of KSRTC 6 Centre for Public Policy Research
  7. 7. 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 7 Centre for Public Policy Research
  8. 8.  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 8 Centre for Public Policy Research
  9. 9. 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 9 Centre for Public Policy Research
  10. 10.  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 10 Centre for Public Policy Research
  11. 11. 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 (%) 11 Centre for Public Policy Research
  12. 12.  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. 12 Centre for Public Policy Research
  13. 13. 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% 13 Centre for Public Policy Research
  14. 14. 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 14 Centre for Public Policy Research
  15. 15.  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. 15 Centre for Public Policy Research
  16. 16.  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 RoadTransport Corporation as on 31 st mar 2009. 16 Centre for Public Policy Research
  17. 17.  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. 17 Centre for Public Policy Research
  18. 18. 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 18 Centre for Public Policy Research
  19. 19. 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 19 Centre for Public Policy Research
  20. 20. Elements of Cost Material Cost 41% Personnel Cost 39% Taxes 5% Interest 7% Depreciation 4% Miscellaneous 4% PERCENTAGE 20 Centre for Public Policy Research
  21. 21. Components of Various Elements of Revenue Traffic Revenue 98% Non Traffic Revenue 2% ChartTitle 21 Centre for Public Policy Research
  22. 22.  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 22 Centre for Public Policy Research
  23. 23. 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
  24. 24. 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 24 Centre for Public Policy Research
  25. 25. 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 2011-12 25 Centre for Public Policy Research
  26. 26. 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
  27. 27. 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) 27 Centre for Public Policy Research
  28. 28. 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 28 Centre for Public Policy Research
  29. 29. 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 22.0829 Centre for Public Policy Research
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