Only 2 public transport corporations turn profitable, 43 in crisis
Thiruvananthapuram: When the centre is mulling permit exemption to luxury buses, public transport corporations in the country are facing a huge financial crisis. Within the last 6 months, public transport corporations incurred a liability of Rs 7865 cr. According to reports, among 45 public transport corporations, only two are profitable. Uttar Pradesh SRTC collected a profit of Rs 17.97 cr while Punjab State Bus Management Company earned Rs 8.16 cr as profit.
At the same time, only 8 companies were successful to earn income to meet the expenditure. MSRTC, APSRTC, UPSRTC, Karnataka RTC, North East Karnataka RTC, Rajasthan SRTC, Punjab Roadways and Odisha SRTC are listed in the loss-making transport corporations.
Public transport corporations managed to survive with the help of the financial aids in budget, government allowances and monopoly in bus routes. Government is also keen to protect these corporation as a part of social responsibility.
Most of the corporations are operating services in non-profitable bus routes also in order to meet the public demand. Hence, if luxury buses get permit exemption, private bus owners will take over the monopoly of these bus routes from public transport corporations.
Most of the public transport corporations are unable to compete with the new facilities of the private buses. Multi-axle luxury buses cost Rs 1.15 crore. At present, the public transport corporations will not be able to deploy new buses or operate more services by exploiting the employees to give a tough competition to the private buses. Thus, if private luxury buses get permit exemption, most of the public transport corporations will face severe financial crisis in future.