Jammu, April 1
Despite austerity measures, the State Road Transport Corporation (SRTC) continues to be in the red, causing heavy losses to the state government.
The SRTC has a fleet of 779 buses and 603 trucks. Out of them, 259 buses and 251 trucks have remained grounded for three years to seven years in spite of the fact that the SRTC workshops have been established in all 14 district headquarters.
The recent government figures have revealed that during the past four years, the SRTC earned a revenue of Rs 135 crore against a total expenditure of over Rs 299.47 crore, indicating a loss of over Rs 164 crore.
The Committee on Economic Reforms, which released its reports in 1988, had expressed concern over the continued heavy losses incurred by the SRTC in Jammu and Kashmir. The committee, headed by Dr Madhav Godbole, comprised three other experts — Mr B. Vijayaraghavan, Dr M.S. Bhat and Mr S. Padit — had suggested to the government to downsize the SRTC establishment.
The Godbole report stated that there was no possibility of adequate funds becoming available to bolster up the SRTC financially, organisationally and operationally. Neither “does this seem necessary looking to the fact that the SRTC has just seven per cent share of the market”.
It suggested that the corporation be closed and pay the employees their salary, sitting at home, till their respective dates of superannuation, with the provision that they would have the option to seek employment elsewhere. However, if, for any reasons, this course of action was not found feasible, the downsizing of the corporation should be considered.
The committee admitted that the government had to meet social obligations and hence the downsizing should be done in a phased manner. It had recommended that the SRTC buses should be withdrawn from the cities where the private passenger transport services were adequate. It had further recommended that SRTC services be made operational only on such rural routes which did not attract private transporters and efforts should be made to motivate private transporters to run their fleet on hilly routes by giving incentives to them.
The committee also recommended that if the cargo fleet was to be retained, the guiding principle should be to use it only as a means of state intervention for ensuring the smooth flow of foodgrains and supplies to the remote areas. The bulk of operations, it suggested, even in respect of these areas should normally be done through private operators, if necessary by resorting to requisitioning of vehicles.
Since 1998, the state government had started acting on some of the recommendations of the Godbole Committee, but it is yet to downsize the SRTC. Ironically, despite 35 per cent of its fleet having remained grounded more drivers and conductors had been recruited.
