Transport debts rose by 381% in 9 years

CHENNAI: The accumulated loss of eight transport corporations which stood at Rs 8,761.69 crore in 2011-12 increased to Rs 42,143.69 crore in 2020-21, thereby witnessing 381 per cent increase. For operating buses for every one km, transport undertakings suffer a loss of Rs 59.16, revealed the white paper on Monday.

According to the white paper, frequent revisions in diesel prices without concomitant rise in fare, inadequacies in material management and cost management leading to high procurement costs and high employee and pension cost compared to previous decade are the primary reasons for poor financial position of State Transport Undertaking.  

“STUs have not focused on route rationalisation and continued to operate buses on uneconomic routes which did not necessarily serve remote areas and ceded many profitable routes to private operators,” added the report.  It said earnings from operational revenue dropped significantly between 2012 and 2020. Out of Rs 1 earned by the STUs, 71 paise was recovered from operation in 2011-12, but the figure fell to 55 paise in 2019-2020.

Similarly, borrowing also raised from 21 to 34 paise. Hinting at an increase in motor vehicle tax, the report stated that vehicle tax has not been revised in the last 15 years. “Average revenue from vehicle tax substantially lower in State compared to Karnataka and Kerala,” the report stated. Despite repeated attempts, former Transport Minister M R Vijayabaskar could not be reached.