KSRTC can save Rs 653 cr annually: MD’s report
KSRTC can save Rs 653 cr annually: MD’s report

KSRTC can save Rs 653 cr annually: MD’s report


Thiruvananthapuram: KSRTC (Kerala State Road Transport Corporation) MD Tomin J. Thachankary has submitted a report to the government pointing out that the corporation can earn a profit of upto Rs 653.24 crore per year in the present condition by merging non-profitable depots and outsourcing maintenance contracts.

The report is based on the directions of financial advisory firm SBI Caps, Prof. Sushil Khanna report and the studies conducted by various departments of KSRTC.

Among the 93 depots presently existing, 35 are being maintained for giving salary to the employees. If these depots are merged with others and the staff reorganized, Rs 219.24 crore can be earned annually. If the bus maintenance contracts are outsourced, a profit of Rs 434 crore per year can be earned, noted the report.

The report was submitted after the government informed that the financial assistance to KSRTC will be blocked, if the outstanding of Rs 420 crore to Kerala Transport Development Finance Corporation (KTDFC) is not paid.

The management said that the restructuring of depots will not affect the passengers. Only less than 50 services are managed by these units. Since there are other units close to them, more number of services cannot be profitable.

If the units are limited to bus station / bus operating centre, it is not likely to affect the passengers. The operating expenses can be reduced as the depot requires Rs 50 lakh per month whereas operating centres need Rs 8 lakh only.

The depots were started without conducting a feasibility study. Instead of considering the places with commutation problem, the depots are set up in the locations suggested by the public representatives.

The depots at Anayara, Enjakkal, Mundakkayam, Sasthamkotta and Irittty cannot be used due to high expenses. The depots at Chathannur, Pandalam, Mallappally, Konni and Ranni are located far from the main roads.

The present maintenance cost of a bus is Rs 12.16 per km. An automobile manufacturer has agreed to take up this work for Rs 4. Thus Rs 8.16 can be saved per km and Rs 434 crore can be saved per year.

Average daily income from a bus is Rs 13,000. With this, a total of Rs 6.5 crore can be saved daily. The services running in low rush hours were cut short and Rs 27.93 lakh could be saved in fuel expense.



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