RTC impasse continues

By W. Chandrakanth

HYDERABAD, NOV. 6. The APSRTC strike continued on the 23rd day without any breakthrough and both the Government and the JAC remained firm on their stand. Though the Chief Minister, Mr. N.Chandrababu Naidu, had left the issue to the Cabinet Sub- Committee, there was no fresh initiative from the members to invite the JAC for talks nor did the JAC make any attempts at resolving the issue.

There are indications that if the Government concedes a bit more than the Rs.100 crore it had offered now to the JAC, there could an amicable settlement. Having come thus far, a little yielding would help ease the people's problems. The JAC is keen on securing at least 15 per cent wage hike but there are pointers that it might settle for a little less.

Sacrifice, if any, has to come from both sides in the interest of the people and the corporation. There could be some settlement if the Government moves up a bit on wage revision and the JAC scales down a little. On other demands, a sincere effort must begin to infuse financial health back into the organisation.

Experts like Dr.Y. Satyanarayana, ONGC Chair Professor in Energy Management at ASCI, suggest selective concessions which are need- based to people. He says students of Government schools, physically challenged and senior citizens with green cards could be entitled for concessions but not all and sundry.

Trade unions and managements also must bring down the expenditure under the head of salaries to much lower than the present one of about 41 per cent. The private sector spends not more than 20 per cent, he points out with a bus-staff ratio of 4, his recent study indicates.

His study also reveals that transport undertakings in Europe and USA like the Greyhound in USA and London Transport in UK are employing about three persons per bus. It means automated fare collection systems and outsourcing most of the non-core activities, especially in maintenance, advance reservation and bus station management would be in place.

A target bus-staff ratio of 4 (2.5 drivers and conductors and 1.5 in traffic and maintenance and administration) and a wage bill of not more than 35 per cent of the earnings could enable the RTC to compete and sustain.

However, without reducing the burden on APSRTC imposed through the concessions and irrational MV Tax such pruning measures would be of no use. There must be a more rational tax structure.

The MV Tax in AP was on per seat per quarter basis till April 1993 with a similar system being in place for private buses. Later it was changed to percentage of earnings basis for APSRTC. In 1992-93, the cost per km on taxes was 52.2 paise but increased to Rs.1.67 paise per km in 2000-2001. Senior officials in the RTC admit that the heavy MV Tax on RTC buses had made the commuters shift to other modes of travel. The JAC is demanding at least a uniform 10 per cent.

Reports of the organisation and Dr.Satyanarayana's study indicate that on an average 128.53 lakh passengers travelled daily on its 17,233 buses in 1997-98 but the same came down to 110.61 lakh in 2000-2001, while the fleet strength grew to 19,219 buses. This 20 lakh drop in the numbers meant overall earnings per km of Rs.12.61, while the cost per km was Rs.13.13 km resulting in a loss of 97 paise for every km operated.

The cost per km increased from 39.1 paise per km in 1980-81 to 167 paise per km in 2000-2001. Wages rose from 30 per cent of total costs to 39 per cent during this period.

The APSRTC began functioning in 1932 with 27 vehicles and now is the best transport service in the world carrying about 1.2 crore passengers daily and employing 1.30 lakh persons.

There is no point in just increasing the MV Tax on private buses as going by the admission of officials, the private operators might pay for one bus but would run at least four more on the same permit illegally. Hence, the drive against illegal vehicles should be 100 per cent. There cannot be any compromise on this.

Does anyone see reason?

Send this article to Friends by E-Mail

Section  : Southern States
Previous : `Bid to introduce M.Sc. in food-processing in
           ANGRAU'
Next     : Hefty pay hike for archakas