Southern States - Andhra Pradesh   

`APSRTC squandering money'

By Our Staff Reporter

HYDERABAD April 1. The Andhra Pradesh State Road Transport Corporation (APSRTC), which is running in losses, has come in for severe flak from the Comptroller and Auditor-General of India (CAG) for wasting money on unproductive projects.

In its report placed in the Assembly, the CAG said the RTC took up construction of bus stations in 259 mandal headquarters on the Government order without making funding arrangements. After initial survey, construction was taken up in 259 mandals at a cost of Rs. 15.29 crores with borrowed funds. It completed construction in 221 mandals between July 1999 and March 2002 while 17 were still under construction. However, they neither yielded any returns nor served the purpose totally.

The CAG said the Corporation did not devise a mechanism to monitor the utilisation of the bus stations for the intended purpose. The report pointed out that 74 out of 158 bus stations were constructed at places actually not convenient for the passengers. Moreover, 17 out of the 104 stations inaugurated were not in use rendering Rs. 1.15 crores incurred on them infructuous. An amount of Rs. 1.03 crores went down the drain as 147 out of the 187 stalls constructed in the bus stations remained unoccupied, it said and added that 47 out of the 161 stations were not need-based as only small shelters could have served the purpose.

The report also found irregularities in the construction of `Bus Bhavan' at Hyderabad to locate administrative offices. The construction, which started in 1992, is yet to be completed though the civil works were completed as early as July 1998. The Board of Directors were kept in the dark on the revised scope of work for over eight years. Moreover, low priority works like ducting, false-ceiling, elevators and gardening were executed without completion of various civil works.

It further said that not only the purpose of Bus Bhavan was defeated due to its delay, the Corporation had incurred an interest of Rs. 7.59 crores on the capital cost of Rs. 12.15 crores till March 2002.

The operation of the much touted Mayuri air-conditioned sleeper coaches was also criticised by the CAG which said that the officials introduced them more in enthusiasm than to gain profits. Without taking up traffic survey or trial runs, the Corporation introduced 12 sleeper coaches spending Rs. 2.45 crores. However, the service ended up with a loss of Rs. 68 lakhs between April 1998 and March 2002.

The CAG report pointed out that only eight sleeper coaches were in operation while three were lying idle from July 1999 onwards due to poor occupancy ratio. Ultimately, five coaches were converted into city special services. The report also questioned the Corporation's failure to review the cost of operation every year despite the poor performance.

The audit also termed the RTC Kalyanamandapam constructed at Hyderabad as unviable and said relative economics were not examined before taking up the project. Due to its non-occupancy and high operational costs, the project resulted in locking up Rs. 4.97 crores besides revenue expenditure of Rs. 83 lakhs per year.

The CAG observed that as 80 per cent of the RTC work force was employed outside Hyderabad, construction of a Kalyanamandapam at a cost of Rs. 4.97 crores was not need based and lacked justification. Till March 2002, the project earned only Rs. 51 lakhs while Rs. 3.52 crores was incurred towards interest, depreciation, property tax and maintenance charges. Moreover, it was serving the general public more than the RTC employees for whom it was constructed.

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