Pandemic, fuel prices bring bus-body building sector to near halt

Low demand causing loss of employment for many skilled and unskilled workers

July 04, 2021 01:50 am | Updated 01:50 am IST - KOCHI

The steep fall in demand for modes of public transport following the pandemic and the skyrocketing fuel price have resulted in bus-body building firms in Kerala recording negligible orders.

Kottayam-based Kondody Motors, which is among the select firms across India that are capable of manufacturing bus bodies that adhere to AIS 052 (the new bus body code specified by the Centre), received a total of 15 orders in the 2020-21 fiscal, in stark comparison to 400 in 2019-20 and around 500 in 2018-19, according to Rahul Tom, the firm’s managing director.

Even among the 15 orders the firm received, less than five were for public transport buses, the rest being for educational and other institutions. The negligible demand for new buses has in turn caused loss of employment for scores of skilled and unskilled workers in the sector.

“The bus transport sector is amongst the most severely affected by the pandemic and also the hike of over ₹15 in diesel price during the last fiscal. Investors are thus reluctant to invest in new buses which cost approximately ₹37 lakh for 50-seat ones and ₹26 lakh for those having up to 40 seats. Likewise, even the few who are investing are showing a marked preference for four-cylinder buses having between 35 to 40 seats, than for six-cylinder ones that have more number of seats. This is aimed at trimming capital investment and spending less on expenses like taxes, fuel, operational and maintenance expenses,” said Mr. Tom.

Motor Vehicle Inspector Bijulal Ram, who is an avid votary of public transport buses to decongest roads and to lessen pollution, feared that the pandemic and the rising fuel prices would bring down the number of private buses operating in Kerala from about 12,500 at present. Fifteen years ago, Kerala took pride in having over 30,000 private buses that criss-crossed the State.

“It was expected that localisation of bus-body building in keeping with AIS-052 standards would create job opportunities and also improve the build quality, seating arrangements and comfort of travelling in buses. The government also stood to benefit in the form of revenue from GST. The fear is now rife that cash-starved bus operators might opt for bus-body building firms located outside Kerala, which compromise on quality and deliver buses at cheaper rates,” said Mr. Ram.

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