KSRTC suffers highest-ever loss in a decade

₹177 cr. loss attributed to increase in wages, hike in diesel prices, illegal operations by private operators

The Karnataka State Road Transport Corporation (KSRTC), one of the premier State transport undertakings in the country, has suffered a loss of ₹177 crore during 2016-17, the highest in the past decade.

It posted a profit of ₹ 50.95 crore during 2015-16, while in the preceding two financial years it incurred a loss of ₹ 43.49 crore and ₹ 75.55 crore, respectively. Between 2006-07 and 2012-13, the corporation earned profit successively.

KSRTC attributed this loss mainly to increased wages of employees, which cast an additional burden of about ₹102 crore. Corporation’s Managing Director S.R. Umashankar told

The Hindu that increase in diesel price too had an impact on the cost of operations.

KSRTC General Manager (Operations) K.S. Vishwanath said the corporation had deployed over 360 buses for city operations in many cities and towns under its jurisdiction during the year. The operations, generating about ₹20 income per km as against ₹32 cost, are yet to stabilise. The mileage of these new buses too is low thereby enhancing the cost of operation, he said. Besides, illegal operation by private operators, both on long-distance and short-distance nationalised routes, too is denting revenues of KSRTC, Mr. Vishwanath added.

Rationalisation

The corporation has been rationalising its operations to cut down the cost and has reduced over 300 schedules which were considered to be excess. Another 450 services, which were doing non-scheduled operations too have been cut, Mr. Vishwanath said.

Balehonnur-based consumer rights activist Shankaranarayana Bhat, who is espousing the cause of RTCs, alleged that slack in administration too is the reason behind the losses besides illegal operations by private operators.

Mr. Bhat told The Hindu that lack of discipline in operation of KSRTC services with erratic timings inconvenient to passengers was another reason for the losses. Services in excess of the demand are deployed in prime sectors like Hassan, Shivamogga and Mysuru, ignoring mofussil areas, which could have contributed substantial revenue, Mr. Bhat added.