<%@LANGUAGE="JAVASCRIPT" CODEPAGE="1252"%> Government of Tamil Nadu - Archives - Policy Notes
Government of Tamil Nadu
Home  
     

ROAD TRANSPORT SERVICES

DEMAND NO. 39 & 57

2001 - 2002

POLICY NOTE

1.0 Introduction

The development of transport facilities in the State is an essential factor for improving the infrastructure for fuelling the development of State Economy. The State Transport Undertakings (STUs) in Tamilnadu play a vital role in this task by providing the necessary transport facilities, through a variety of services such as Town, Mofussil, Ghat and Express Services, and also Inter-State services to neighbouring States of Andhra Pradesh, Karnataka, Kerala and Pondicherry. The Transport Department is mainly dealing with the operational aspects of the nationalised bus transport system in the State. Organisations like the Tamilnadu Transport Development Finance Corporation Ltd, the Pallavan Transport Consultancy Services Ltd, the Institute of Road Transport, the Tamilnadu State Transport Corporation Employees' Pension Trust, Post-retirement benefit fund and Motor Vehicles Maintenance Department come under the administrative control of this Department.

2. NATIONALISATION

2.1 Chronicle of events in Nationalisation:
1948 - The Nationalisation of passenger road transport in Tamil Nadu commenced soon after independence with the take over of all routes in Chennai city in 1948.

1959 - Based on the policy then taken that the Government should exclusively operate all routes exceeding 120 miles, buses were introduced in long distance routes by erstwhile Tamil Nadu State Transport Department in 1959.

1967 - The Government decided to nationalise

(i) All routes of 75 miles (120 KM) and above, both ordinary and express services,

(ii) All routes radiating from or terminating in Madras City irrespective of length, and

(iii) All routes in Kanyakumari District including those radiating or terminating in the District.

1971 - Tamil Nadu Fleet Operators Stage Carriages (Acquisition) Act was enacted by which all the routes, buses, workshops and the staff of the five fleet operators owning 50 permits and above were acquired and transferred to three Transport Corporations viz. Pandiyan Roadways Corporation, Cheran Transport Corporation and Cholan Roadways Corporation.

1973- The Government passed the Tamilnadu Stage Carriages and Contract Carriages (Acquisition) Act, 1973. The Act provided for nationalisation of passenger transport District by District, in a period of five years starting from the District, which had the smallest fleet and progressing in the ascending order of fleet strength of the Districts. The first District to be fully nationalised under this Act was The Nilgiris. This Act was held ultra vires by the High Court, but subsequently held as valid by the Supreme Court of India in the year 1983.

1984 - Keeping in view the Supreme Court’s orders and the priorities of the State Government and to carry out the Government’s declared objective of implementing the programme of Nationalisation in a phased manner, the Government legislated an Act in 1984 amending the Act of 1973. By this, the small operators holding upto five permits were exempted from the provisions of Act of 1973 and the private operators were allowed to continue to get fresh permits and renew their existing permits on the date of expiry. It was, however, considered difficult for the State Transport Undertakings to step into all the routes to be vacated by the private operators within 3 or 4 years after fulfilling their commitment to the normal augmentation and replacement programmes. The Government therefore, decided to resort to displacement of private operators in a phased programme.

1990 - The Government, however, wanted to restore the Nationalisation Act of 1973 to its original form and in 1990 introduced the Tamilnadu Stage Carriages and Contract Carriages (Acquisition) Amendment Bill 1990, which aimed at reversing the amendments proposed to the principal Act during 1984 and completing the process of nationalisation in a period of ten years. It was decided, subsequently to withdraw the Bill of 1990, in view of the need to concentrate on the provision of bus facilities to the villages, which have a population of 1000 and above.

1992 -The Government brought out an enactment viz., Tamilnadu Motor Vehicles Special Provisions Act 1992 (Act 41/92). This Act facilitates renewal of permits and variation of permits of private operators on approved scheme routes. This Act, however, prohibits the grant of new permits to the private operators on approved scheme routes.

1995 - The Tamil Nadu Motor Vehicles (Special Provisions) Rules to the said Act were framed in May 1995. The rules were amended in January 1996. The amended rule enabled the small private stage carriage operators to renew their permits and to apply for varying the conditions of permit.

1996 -The Government enacted Tamilnadu Motor Vehicles Special Provision (Cancellation of variation of condition of permit) Act 1996. This Act provided for restoration of status quo prior to 24.01.1996. The Government also published Area Schemes for each District, other than the Districts of Chennai, Kanyakumari and the Nilgiris, which were already covered by area schemes. According to the Area schemes, only the State Transport Undertakings can operate stage carriages on new routes in the Districts notified by the scheme.

STATE TRANSPORT CORPORATIONS
3.1 The Nationalised Transport activities, which were under the State Transport Department till 1971, began to be entrusted to the various Transport Corporations registered under the Companies Act. The Government appointed Expert Committees to examine in-depth, the structure and performance of Tamil Nadu State Transport Corporations and give suitable measures for improvement, on two occasions, first in 1976 (Pattabiraman Committee) and then again in 1990 (Thillainayagam Committee). The Pattabiraman Committee (1976) advocated formation of district-wise corporation for all the Districts, which was accepted by the Government, in principle. Both the Committees recommended continuance of multi corporate nature of bus transport in Tamil Nadu in view of the greater advantage derived from such a set-up as compared to a monolithic structure. The Thillainayagam Committee (1990) recommended, keeping in mind flexibility, efficiency and responsiveness to public needs, that the optimal size of a Transport Corporation could be around 750 buses and in any case not to exceed 1200. The Government accepted all these views. As on date, there are 19 transport corporations in the State. The dates from which the Corporations were formed, their principal area of operation etc are indicated below:

 

Sl.

No

Name of the

Corporation

Date of

Formation

Principal area of

operation

Fleet Strength as on

30.06.2001

(including spare buses)

 

1

Metropolitan Transport

Corporation. (Chennai) Ltd

Chennai

 

01.01.72

Chennai

Metropolitan

area

 

2818

2

State Express Transport

Corporation

(Tamil Nadu Dn.I) Ltd.

Chennai

01.04.80

Entire State

Of Tamil Nadu

706

3

State Express Transport

Corporation

(Tamil Nadu. Dn.II) Ltd.

Chennai

27.01.94

Inter State

203

4

Tamil Nadu State Transport

Corporation (Villupuram Division I) Ltd.,

Villupuram

16.01.75

Villupuram & Cuddalore Districts

1077

5

Tamil Nadu State Transport

Corporation (Villupuram Division II) Ltd.,

Vellore

01.12.82

Vellore & Thiruvannamalai Districts

836

6

Tamil Nadu State Transport

Corporation (Villupuram Division III) Ltd.,

Kanchipuram

 

 

 

 

01.04.92

Kanchipuram & Thiruvallur Districts

762

7

Tamil Nadu State Transport

Corporation (Salem Division I) Ltd.,

Salem

15.02.73

Salem/Namakkal Districts

945

8

Tamil Nadu State Transport

Corporation (Salem Division II) Ltd.,

Dharmapuri

01.04.87

Dharmapuri

District

685

9

Tamil Nadu State Transport

Corporation (Coimbatore Division I) Ltd.,

Coimbatore

01.03.72

Coimbatore and the Nilgiris Districts

1587

10

Tamil Nadu State Transport

Corporation (Coimbatore Division II) Ltd.,

Erode

01.04.83

Erode District

930

11

Tamil Nadu State Transport

Corporation (Kumbakonam Division I) Ltd.,

Kumbakonam

 

01.03.72

Thanjavur,

Nagapattinam &

Thiruvarur Districts

944

12

Tamil Nadu State Transport

Corporation (Kumbakonam Division II) Ltd.,

Thiruchirappalli

01.04.85

Thiruchirapalli, Karur & Perambalur districts

978

13

Tamil Nadu State Transport

Corporation (Kumbakonam Division III) Ltd.,

Karaikudi

01.04.83

Sivaganga & Ramanathapuram Districts

590

14

Tamil Nadu State Transport

Corporation (Kumbakonam Division IV) Ltd.,

Pudukkottai

16.03.96

Pudukottai District

356

15

Tamil Nadu State Transport

Corporation (Madurai Division I) Ltd.,

Madurai

17.01.72

Madurai District

933

16

Tamil Nadu State Transport

Corporation (Madurai Division II) Ltd.,

Tirunelveli

01.01.74

Tirunelveli & Thoothukudi Districts

830

17

Tamil Nadu State Transport

Corporation (Madurai Division III) Ltd.,

Nagercoil

01.04.83

Kanyakumari

District

676

18

Tamil Nadu State Transport

Corporation (Madurai Division IV) Ltd.,

Dindigul

01.04.86

Dindigul, Theni

District

726

19

Tamil Nadu State Transport

Corporation (Madurai Division V) Ltd.,

Virudhunagar

01.05.97

Virudhunagar

District

368

 

3.2 Amalgamation of STUs:
 
Amalgamations in respect of MTC-II with MTC-I and TNSTC (CBE.Dn.III) with TNSTC (CBE.Dn.I) have been completed with effect from 10.01.2001 and 07.11.2000 respectively. It is considered appropriate to merge the remaining 18 Corporations other than MTC into 6 Corporations to reduce the administrative overhead and avoid wasteful competition in the operation of services among the Corporations. In respect of amalgamation of SETC (Dn II) with SETC (Dn I), the draft amalgamation proposals have been sent to the Government of India for approval. The approval from Government of India is still awaited. Now it has been proposed to amalgamate the rest of the STUs as detailed below: -

 

S No

Name of Corporation

Name of the Corporations after amalgamation

1

State Express Transport Corporation (Tamilnadu Division I) Ltd, Chennai

2

State Express Transport Corporation (Tamilnadu Division II) Ltd, Chennai

3

Tamilnadu State Transport Corporation (Villupuram Division I) Ltd, Villupuram

4

Tamilnadu State Transport Corporation (Villupuram Division II) Ltd, Vellore

5

Tamilnadu State Transport Corporation (Villupuram Division III) Ltd, Kanchipuram

6

Tamilnadu State Transport Corporation (Salem Division I) Ltd, Salem

7

Tamilnadu State Transport Corporation (Salem Division II) Ltd, Dharmapuri

8

Tamilnadu State Transport Corporation (Coimbatore Division I) Ltd, Coimbatore

9

Tamilnadu State Transport Corporation (Coimbatore Division II) Ltd, Erode

10

Tamilnadu State Transport Corporation (Kumbakonam Division I) Ltd, Kumbakonam

11

Tamilnadu State Transport Corporation (Kumbakonam Division II) Ltd, Trichy

12

Tamilnadu State Transport Corporation (Kumbakonam Division III) Ltd, Karaikudi

13

Tamilnadu State Transport Corporation (Kumbakonam Division IV) Ltd, Pudukkottai

14

Tamilnadu State Transport Corporation (Madurai Division I) Ltd, Madurai

15

Tamilnadu State Transport Corporation (Madurai Division II) Ltd, Tirunelveli

16

Tamilnadu State Transport Corporation (Madurai Division III) Ltd, Nagercoil

17

Tamilnadu State Transport Corporation (Madurai Division IV) Ltd, Dindigul

18

Tamilnadu State Transport Corporation (Madurai Division V) Ltd, Virudhunagar

 

4.0 OPERATIONAL AND FINANCIAL PERFOR-MANCE OF THE STATE TRANSPORT UNDERTAKINGS

4.1 Physical performance
The physical performance of the Corporations during the year 2000-01 are given below:

1. Scheduled services as on 31.03.2001

Chennai Metro – City services 

 2582

Town Services (in Districts) 

 5711

Mofussil services 

 5780

Express services 

 829

Ghat services 

 510

Total 

 15412

Spares & repairs 1557 Total Fleet Strength 

16969

2. Total Kilometre operated per day 62.74 (lakh KM.)

3. Total Passengers carried per day 177.42 (in lakhs)

4. % Fleet utilisation 91.60%

5. Kilometre efficiency (excluding specials) 97.03%

6. Kilometre efficiency (including  specials) 100.39%

7. % Occupancy ratio

a) City & Town 72.53 %

b) Mofussil 90.95 %

c) Express 86.30 %

d) Ghat 103.65 %

e) Overall 81.99 %

8. Breakdown per 10,000 Km 0.33

9. Accidents per 1,00,000 Km 0.39

Total accidents 8885  Fatal accidents 1401 No, of persons dead 1706

10. Fuel performance (KMPL)

a) City & Town 4.10 b) Mofussil 4.48

c) Express 4.32

d) Ghat 3.35

e) Overall 4.27

11. Engine oil per 10,000 Km 13.13 litres 

12. Km run per condemned tyre 1.43 (lakh Km)

13. Retreading Factor 4.12

14. Men per bus 6.97

15.Percentage of services not generating Revenue to meet the full cost 70%

4.2 Financial performance of the Corporations
The financial performance of the Transport Corporations has been very dismal and the financial position is in a precarious condition.

4.3 Loss
The cumulative loss of the Corporations upto 31.03.2001 is Rs. 2035.02 Crores. The loss incurred by the Corporations from 1991-92 is given below:

(Rs. in crores)

Year

Loss

Cumulative loss

Upto 31.03.1991

 

(-) 164.13

1991-92

(-) 21.78

(-) 185.91

1992-93

(-) 50.46

(-) 236.37

1993-94

(-) 48.03

(-) 284.40

1994-95

(-) 41.21

(-) 325.61

1995-96

(-) 207.37

(-) 532.98

1996-97

(-) 310.67

(-) 843.65

1997-98

(-) 229.37

(-) 1073.02

1998-99

(-) 411.39

(-) 1484.41

1999-2000

(-) 317.77

(-) 1802.18

2000-01

(-) 232.84*

(-) 2035.02

* subject to audit

The estimated loss for the current year is Rs. 315 Crores. The huge loss is due to mismatch between the fare collected and input costs. The fare fixed has not been commensurate with the periodical increase in the cost of operation especially in diesel and establishment expenditure.

 

4.4 Increase in diesel cost
The expenditure on diesel has gone up from Rs. 229.23 Crores in 1991-92 to Rs. 916.35 Crores in 2000-01. The KM per litre of diesel almost remains constant.

Year

Diesel expenditure [Rs. in Crores]

Cost per KM [in Paise]

1991-92

229.23

133

1992-93

288.51

153

1993-94

331.57

172

1994-95

391.29

192

1995-96

406.15

191

1996-97

451.83

212

1997-98

562.23

253

1998-99

602.77

261

1999-2000

732.48

319

2000-01

916.35

400

 

4.5 Increase in Establishment expenditure
Wage revisions are given to the employees of the Corporation through negotiated settlement once in three years. The average increase in emoluments on account of settlement effected from 01.09.1998 was Rs. 835 per month and the total additional commitment per annum was Rs. 231 crores. The establishment cost accounts for nearly 51% of the traffic revenue. The establishment expenditure has been going up very steeply every year even though there has been no appreciable increase in staff strength. The establishment cost of Rs. 388 Crores in 1991-92 has increased to Rs. 1316 Crores in 2000-01.

Year

Establishment cost [Rs. in Crores]

Number of employees

Average Establishment cost per employee per month [in Rs.]

Average Establishment cost in paise per one KM of operation

1991-92

387.97

1,00,562

3215

226

1992-93

475.25

1,01,539

3900

253

1993-94

531.55

1,12,624

3930

276

1994-95

587.86

1,12,835

4340

288

1995-96

755.18

1,12,598

5590

355

1996-97

805.52

1,17,141

5730

378

1997-98

896.29

1,23,560

6040

403

1998-99

1125.33

1,26,777

7400

488

         

1999-2000

1257.84

1,26,343

8300

542

2000-01

1316.20

1,27,055

8630

575

4.6 Extent of coverage of expenditure
As there has not been concomitant increase in the fare structure keeping in tune with increase in expenditure, the STUs have not been able to meet the expenditure with the revenue generated. The gap between the revenue and expenditure has been persistent.

Year

Total Revenue [Rs. in Crores]

Total Expenditure [Rs. in Crores]

Extent of coverage of expenditure by revenue

1991-92

991.52

1013.30

99%

1992-93

1188.33

1240.85

96%

1993-94

1309.55

1368.87

96%

1994.95

1518.55

1558.82

97%

1995.96

1648.68

1846.08

89%

1996-97

1696.67

2006.59

85%

1997-98

2069.79

2297.03

90%

1998-99

2188.03

2572.72

85%

1999-2000

2496.27

2810.30

89%

2000-01

2815.54

3048.38

92%

 

In order to keep up the operations, the STUs have to depend upon external borrowings, postpone the payment to suppliers of fuel, spares etc, and commit default in payment of statutory liabilities and accident compensation. The STUs have fallen into debt trap. The financial institutions are not prepared to extend any further loan to the STUs.

4.7 Loan position: The increase in outstanding loan position is indicated below:

Rs. in Crores

Year

Loan, overdraft outstanding at the end of the year

1990-91

258

1991-92

265

1992-93

317

1993-94

335

1994-95

441

1995-96

595

1996-97

701

1997-98

838

1998-99

787

1999-2000

985

2000-01

1024*

* subject to audit

This has led to high interest commitments and inability of the STUs to pay to suppliers of fuel, spares and other statutory commitments in time. The interest commitment has gone up from Rs. 77.77 Crores in 95-96 to Rs.158.32 Crores in 2000-01.

 

4.8 Outstanding Liabilitites
The STUs have virtually landed in financial mess with heavy outstanding liabilities towards the supply of fuel, spares and statutory dues. The position as on 31.05.2001 is given below:

 

Particulars

Rs. in Crores

HSD oil and Lubricant

73.80

Suppliers of spare parts, tyres etc

41.27

Accident compensation to be remitted to Courts

41.49

Statutory dues like Provident Fund, Gratuity, Recoveries from Employees

142.54

Others

9.22

TOTAL

308.32

 

Due to financial difficulties the STUs are unable to replace the overaged buses in time and also to procure spares to keep the operation going.

4.9 Replacement and increase in fleet strength:
The poor financial position of the STUs has resulted in failure to replace the old buses in time with inadequate augmentation, without keeping pace with the traffic needs. This has driven virtually the travelling public especially the Metro population to personalised modes of transport at high cost. While the fleet strength of STUs has gone up by 2371 buses from 1991-96, it had gone down by mere 1112 buses during 1996-2001. The number of overaged buses as on 30.06.2001 is 6,662 accounting 39% of the total fleet.

4.10 Vehicles under repair
The STUs have been struggling to keep the operation of services with the present financial position. As on 31.05.2001, nearly 776 buses were off the road due to shortage of spare parts and assemblies.

5.0 Steps taken to improve the present situation
The Government have committed to improve the opertion and taken various remedial steps on war footing.

1. It is proposed to introduce 1550 new buses towards replacement of overaged buses during the current year.

2. On 25.07.2001, ‘Mass check’ was conducted by all the STUs in its area of jurisdiction, from early morning to late night. During the ‘Mass check’ programme, 80,313 checks were conducted and 3,740 passengers were detected as ‘ticketless’. A sum of Rs. 1.12 lakhs was collected as fine. ‘Maintenance and other Special Weeks’ were observed from 30.07.2001 to 02.09.2001 as detailed below on various special works. The idea was to ensure that the STUs’ buses are in good condition and to create awareness among the Drivers and Conductors to behave courteously towards the passengers.

(a) Maintenance Week I – 30.07.2001 to 05.08.2001: The body repais were carried out to ensure good appearance of the buses; the route boards were re-written to improve visibility.

(b) Maintenance Week II – 06.08.2001 to 12.08.2001: The mechanical conditions of the buses were improved by carrying out preventive maintenance works. Steps have been taken to improve the Diesel KMPL and Engine oil KMPL performance.

(c) Breakdown-free Week – 13.08.2001 to 19.08.2001: This week was observed to ensure the credibility of operation by avoiding breakdowns enroute. Preventive maintenance works were carried out thoroughly to reduce the breakdowns to the barest minimum.

(d) Safety Week – 20.08.2001 to 26.08.2001: ‘Safety Week’ was observed to ensure safety of passengers by preventing accidents by counselling the Drivers to drive safely.

(e) Courtesy Week – 27.08.2001 to 02.09.2001: During the ‘Courtesy Week’ the Drivers and Conductors were educated on courteous behaviour towards the passengers.

(f) In addition to the above, the following steps were also taken to improve the performance of the Corporations:

(1) The managerial cadre Officers, including the Managing Directors have been asked to go on line inspection regularly to ensure that

(i) Enroute passengers are picked up

(ii) Collusion with private operators in timings etc, is totally eliminated

(iii) Crew behave properly with the public

(iv) Compliance of Traffic Rules and Regulations are ensured

(v) Ticketless travel is curbed, enforcing provisions as per the Motor Vehicles Act

(vi) The Driver handles the bus properly with good driving habits to prolong life of the bus and drives cautiously to avoid accidents

(vii) General upkeep of the bus including Body cleaning.

(viii) Maintaining the punctuality of operation to enhance the image of the Corporation

(2) The Managing Directors have been advised to camp at least for two days a week at the Depots which do not perform well and see that necessary remedial actions are taken to improve the efficiency of that Depot and take steps to improve the revenue potential. Further they have been required to take extra efforts to reduce accidents, as the Motor Accident compensation has been increasing over the years and had reached nearly Rs. 70 Crores in the last year.

(3) Drastic action is being taken to curtail establishment expenditure.

(4) Nodal Officers among the Managing Directors of the Corporations to be amalgamated are responsible for rationalisation of routes/ services to avoid unhealthy competition among the STUs. The Nodal Officers have to sort out the issues between the regions by mutual discussions with the other Nodal Officers.

6.0 Mini buses
Mini buses have been permitted to be operated to serve rural areas, which have not been provided with bus facilities. All over the State, more than 3725 mini buses are in operation. Almost all the STUs have complained that these mini buses are allowed to run in the served routes exceeding the permissible length of 4 KM. Further, they are operating from bus stands at many places. The loss sustained by the STUs because of the operation of mini buses is estimated to be around Rs. 4 Crores a month.

7.0 PREVENTION OF ACCIDENTS
The accident compensation commitment has gone up drastically from 16.03 Crores in 1991-92 to 68.33 Crores in 2000-2001. Hence the Government attach more importance to the accident prevention measures to reduce the road accidents involving State Transport Undertaking Buses. The measures taken by State Transport Undertakings to avoid accidents are given below:

7.1. Most of the accidents are caused due to lack of concentration on the part of the Drivers. Training in Yoga will help to achieve higher levels of concentration while driving. YOGA training is being given to the Drivers of all State Transport Undertakings.

7.2 Safety clinics and brain storming sessions are organised in the Driver Training Schools to educate the accident-prone Drivers on defensive driving practices.

7.3. The Road Safety Patrolling is arranged continuously to identify the Drivers who violate traffic rules and laws and initiate suitable action against them.

7.4 A number of preventive and curative measures have been taken by the STUs for prevention of accidents. In order to inculcate safety consciousness among Drivers, the Safety Driving Award Schemes are being implemented by the STUs. Accident free Award scheme encourages the Drivers to maintain very good driving habits and accident-free record. With a view to create a cadre of efficient Drivers, the Corporations have established Driver Training Schools.

7.5 Drivers who have performed line duty without any accident for the continuous period of every ten years are being granted one special increment in the prevailing scale of pay.

7.6 Refresher courses are also conducted to create awareness among Drivers for prevention of accidents. The accident-prone Drivers are sent to refresher course in the driver training school to correct their driving habits and to avoid accidents. The Driving Range at Gummidipoondi has been improved at a cost of Rs.80.00 lakhs. .

7.7 The Institute of Road Transport has introduced a scheme for driver training. Under this scheme, young men with good physique and SSLC qualification are selected and given intensive training for 12 weeks on driving heavy transport vehicles, Motor Mechanism, public relations, First Aid, etc. Preference is being given for employment in STUs for the Drivers trained in Institute of Road Transport.

7.8 In view of the Technological development in the Automobile sector and to enable the Drivers to understand the Road Traffic Rules to ensure accident free driving, the Government have enhanced the educational qualification of Heavy Vehicles Drivers recruited in the STUs from eighth standard to SSLC/Tenth standard pass.

7.9 The Hon’ble Chief Minister of Tamilnadu has instructed that in order to reduce the accidents due to Drivers’ fatigue, Drivers should not be allowed to drive the buses for more than three hours continuously during night time. The Managing Director, State Express Transport Corporation has taken steps to ensure change of Drivers at regular intervals.

8.0 Comparison of Fare structure prevailing in other States
The fare in Tamil Nadu is the lowest in the country, which is the main reason for the huge losses. The present fare structure for Mofussil services in Tamil Nadu with comparative figures of other important States is given below:

Rate of fare prior to

October 2000

Revised rates as

On February 2001

Date of effect

Fare per KM

Date of effect

Fare per KM

Andhra Pradesh State Road Transport Corporation

11.11.1999

30

30.09.2000

32

Maharastra State Road Transport Corporation

12.10.1999

35

21.10.2000

42

Karnataka State Road Transport Corporation

04.11.1999

24

04.10.2000

25.75

Rajasthan State Road Transport Corporation

03.12.1997

31

01.10.2000

32

Kerala State Road Transport Corporation

02.10.1999

28

   

State Transport of Punjab

12.11.1999

36

06.07.2000

40

Orissa State Road Transport Corporation

26.10.1999

26

21.10.2000

29

Tamilnadu State Transport Corporations

25.10.1999

22

   

9.0 AMENITIES TO THE TRAVELLING PUBLIC
9.1 Bus shelters (ordinary type and glow sign type) have been constructed through sponsors at various bus stops. The sponsors are permitted to exhibit their name and advertisement in the front portion and on the sides of the shelter name of bus stop and routes passing through the bus stop are being displayed for the convenience of the passengers.

9.2 In order to make use of vast open space in the platforms and to have better appearance and security at night for the passengers glow sign advertisement boards have been provided in T Nagar, Saidapet & Vadapalani bus terminus.

9.3 MTC has provided inter-transfer facility for two wheelers by giving sufficient space in bus terminals for parking the two wheelers.

9.4 Motels have been constructed by the State Transport Undertakings at Padalur (Tamil Nadu State Transport Corporation Ltd., Tiruchirapalli) Mamandur (Tamil Nadu State Transport Corporation Ltd., Villupuram) Tindivanam, Madurai, Kottampatti and Thozhudur (State Express Transport Corporation) for the benefit of the travelling public.

10.0 TRAVEL CONCESSIONS
10.1 The students studying upto +2 in the Schools under the control of Directors of School Education and Elementary Education are allowed free travel concession in the buses of State Transport Undertakings. All other students in colleges and other Institutions recognised by the appropriate Government Departments are allowed 50% concession in respect of the monthly concessional season tickets to travel in the buses of State Transport Undertakings except buses of State Express Transport Corporation (TN.Dn.I) Ltd., and State Express Transport Corporation (TN.Dn.II) Ltd.

10.2 During the year 2001-2002 the Government have proposed to release a sum of Rs. 165.00 Crores as student concession subsidy to the State Transport Undertakings.

10.3 Besides, Travel Concessions are given to special categories of passengers as follows:

1.  Freedom fighters drawing Central/State pension or both pensions and those who participated in border/language stir ... 100%

2. Cancer patients for their travel to the Hospitals recognised by Government for treatment and back .... 75%

3. Physically handicapped/Deaf/Blind (except in SETC(TN.Dn.I) & SETC(TN.Dn.II)  buses) .... 100%

4. Mentally retarded and epileptic patients .... 100%

5. Drama artistes .... 50%

6. Accredited press correspondents .... 100%

7. Members of Legislature and Ex-members 100%

8. Widows and Legal heirs of freedom fighters drawing Central Pension or State pension or both pensions .... 100%

9. Wife or husband and minor legal heirs of those who participated in the language stir to protect the Tamil Language and who are recipients of financial assistance from Government ...... 100%

The cost towards the above travel concession is reimbursed to the State Transport Undertakings by the concerned administrative departments.

11.0 LABOUR WELFARE MEASURES

11.1 The Transport Corporations continue to take good care of their workers and their families.

11.2 Wage Settlement
A wage settlement between the management of the State Transport Undertakings and the representatives of the Federations of the workers' Unions is signed once in three years. The last wage settlement was reached on 13th February 1999, which came into effect from 1.9.1998. The next wage settlement has to take effect on 1.9.2001. The talks commenced on 30.08.2001.

11.3 Service weightage
Cash award of Rs. 500 is given to employees who have completed 20 years of service.

11.4 Free travel passes to children of employees
Apart from free-travel passes to the employees, children of employees studying in school and colleges are being issued with free bus passes for travel between places of residence and the schools / colleges.

11.5 Canteen facilities
Employees are provided with subsidised food in canteens.

11.6 Educational allowance
Every year an amount of Rs.75 is granted towards purchase of books upto +2 class to each of the children of employees not exceeding 2 children of an employee. An annual merit based scholarship amount not exceeding Rs.1500 is granted to an employee's son or daughter who is pursuing professional courses in Medicine, Dental, Pharmacy, Veterinary, Engineering, Agriculture or Law as a regular student subject to certain conditions. The facility is also available to the children of deceased employees who died after 1.9.1989.

11.7 Allowances with wages
City Compensatory Allowance, House Rent Allowance, Rural Allowance and Hill Allowance are paid. Health Allowance is paid at the rate of 4% on the Basic pay plus DA subject to a minimum of Rs, 100 per month. The Washing Allowance to those who are issued with uniforms is paid at Rs. 44 per month. All eligible employees are supplied with one pair of shoes and two pairs of socks or three pairs of chappals every 2 years.

11.8 Reimbursement of legal fees
|In respect of criminal case filed against a driver who is involved in an accident while on duty, if it ends in honourable acquittal or acquittal by benefit of doubt, irrespective of the decision of the MACT, a sum of Rs.600 is reimbursed as assistance towards legal fees. Similarly, in accident cases involving footboard passengers, if the conductor is acquitted either honourably or by benefit of doubt, irrespective of the decision of the MACT, a sum of Rs. 600 is reimbursed as assistance towards legal fees.

11.9 Uniform
Two sets of Terry cotton uniform cloth to every eligible male employee and two polyester saris or three cotton saris and three polyester blouse peaces to each eligible female employee are supplied every year. One Woolen sweater is supplied every year to every employee posted in declared hill stations. In respect of those Drivers and conductors, who regularly operate buses from the plains to the hills stations, one woolen muffler is supplied once in a year.

11.10 Family benefit fund
In the event of death of an employee while in service a sum of Rs.One lakh is being given to the family.

11.11 Funeral expenses
A non-recoverable grant is being given by the Corporation either to the legal heirs of the employee or in respect of the employee himself as the case may be to meet the funeral expenses:

(a) Death of an employee Rs. 750

(b) Death of a family member Rs. 400

If an employee expires while on duty, his family is granted an advance of Rs.5000 from the Family Benefit Fund amount of Rs.1,00,000.

11.12 Marriage loan
Marriage loan is extended to the eligible male employees or to the male children of the eligible employee at the rate of Rs.7500. For the female employees or the female children of the eligible employees, the loan amount is Rs.12,000.

11.13 Steering allowance
Steering allowance ranging between Rs.2.00 and Rs.3.00 for city buses, Rs.2.25 and Rs.5.00 for Mofussil buses and for hill station buses, are being paid to the Drivers who performed full duty. Double this rate is paid for duty beyond midnight (12.00 to 4.00 A.M).

11.14 Voluntary retirement scheme
Under the Voluntary Retirement Scheme, a lump sum amount of Rs. 9000 per year is payable to the employee of State Transport Undertakings for the left over period of service subject to a maximum of Rs. 72, 000.

11.15 Education advance
A sum of Rs.1000 shall be paid as education advance during the month of May every year, which carries no interest.

11.16 Leave benefits
Each permanent employee is eligible for the following kinds of leave.

18 days medical leave per year

Earned leave at the rate of 1/11 days (30 days/year)

Optional Festival Holidays-2

Casual Leave - 12

National & Festival Holidays : 9 per year (4 NH/5FH)

Maternity Leave of 90 days to the eligible female employees.

11.17 Holiday Home
The Transport Corporation employees and their families are having the facilities of accommodation at the Holiday Homes in important tourist centres like Ooty, Kodaikanal, Courtalam and Kanyakumari, which are run by the Sister Corporation.

11.18 Special Health Fund Scheme
Under Special Medical Scheme employees are contributing Rs.5 every month through their salary bill and management is also contributing an equal sum to this scheme. Out of this fund, financial assistance, is extended for the treatment to the employees and their family members not exceeding Rs.1,00,000 for the following major ailments.

Heart operation

Kidney transplantation

Ballooning-Heart operation

Cancer operation

Brain tumour

11.19 Professional colleges / institutions for the benefit of children of employees
The Institute of Road Transport is running Medical College, Engineering College and three Polytechnics for imparting professional education to the children of the employees of State Transport Undertakings. In Engineering College & in Polytechnics 50% of the seats are reserved for this purpose while in Medical College at Perundurai, Government is filling up 40 seats and 20 seats are being given to the children of the employees of STUs. Most of the Transport Corporations are running Industrial Training Institute exclusively for the benefit of the children of the employees.

12.0 Employees Post Retirement Benefit Fund scheme
12.1 TNSTC Employees Post Retirement Benefit Fund Scheme was introduced from 1.9.92 under Wage Settlement 1992 to provide benefit to retired and voluntarily retired employees. Further, benefits were extended to family of expired employees, subsequently under this scheme. Under this scheme, employees should contribute Rs.50/- per month from 9/92 or from the month of enrolment upto the month of retirement, voluntary retirement and death and the corporation should contribute Rs.1000/- per employee as one time contribution for those employees on roll as on 1.9.92 and for those employees enrolled on or after that date. Further, benefit under this scheme has been extended to Officers in managerial cadre.

TABLE OF BENEFIT DEPENDING UPON PERIOD OF RETIREMENT

1.9.1992 to 31.8.1997: Rs. 300/- per month

1.9.1997 to 31.8.2002: Rs. 450/- per month

1.9.2002 to 31.8.2007: Rs. 600/- per month

1.9.2007 to 31.8.2012: Rs. 750/- per month

1.9.2012 to 31.8.2017: Rs.1000/- per month

1.9.2017 and afterwards: Rs.1250/-per month

No. of employees benefited under this scheme as on 30.6.2001 are 16226.

13.0 NEW PENSION SCHEME FOR THE EMPLOYEES OF STUS

13.1 A new pension scheme providing more benefits than that under the Employees Pension Scheme 1995 has been formulated by excluding the State Transport Undertakings from the purview of the Employees’ Provident Fund. Miscellaneous Provisions Act 1952 with effect from 01.09.1998.

13.2 The Average gross monthly pension works out to Rs.2800 as against Rs.750 in the case of Regional Provident Fund Scheme and commutation for a member comes to Rs.73 700 at present.

13.3 To implement the new Pension Scheme, a Trust has been created.

13.4 The STUs have so far sanctioned pension to 3810 employees.

13.5 The Trust has approached Commissioner of Income-tax for getting exemption from taking L.I.C. Policies. The STUs have also requested the Regional Provident Fund Commissioner to refund Rs.304 Crores (approximately) remitted under Family Pension Scheme 1971 and Employees Pension Scheme 1995 for transferring to the Pension Fund.

 

14.0 TRANSPORT DEVELOPMENT FINANCE CORPORATION
14.1 The Tamil Nadu Transport Development Finance Corporation Limited (TDFC) was established in March 1975 in order to cater to the financial requirements of State Transport Undertakings for purchase of chassis body building the setting up of workshops, working capital, etc., charging a lower rate of interest by mobilising public deposits. Authorised share capital of TDFC is Rs.70.00 Crores. The paid up share capital is Rs.61.74 Crores out of which Government have contributed Rs.43.03 Crores and the State Transport Undertakings Rs.18.71 Crores.

14.2 TDFC has been making profits since its inception. The profit earned for the last 5 years is as follows:

(Rs. in lakhs)

Year

Profit

before tax

Income tax

Dividend

paid

Dividend

tax

% of dividend declared

Retained

profit

1996-97

1060.88

458.28

391.86

----

15%

210.74

1997-98

2744.68

781.83

381.98

38.19

10%

1542.68

1998-99

1541.62

541.00

 

----

---

1000.62

1999-2000

2134.60

900.00

----

---

----

1234.60

2000-2001

1821.38

800.00

----

----

----

1021.38


The reason for the reduction in profit in 2000-01 is due to reduction of lending rates by 1% with effect from 1.7.2000.

14.3 The deposits of TDFC Ltd as on 31.3.2001 are Rs.807.51 Crores, consisting of Rs.546.55 Crores from Govt. Institutions & Universities etc and Rs.260.96 Crores from the public. Financial assistance extended by TDFC since is inception upto 31.3.2001 is Rs.3595.91 Crores. During 2000-01 Rs. 109.72 Crores has been sanctioned towards Hire Purchase and Rs.541.25 Crores towards Short Term loans. With the financial assistance extended by TDFC the State Transport Undertakings have so far purchased about 31229 new buses.

15.0 PALLAVAN TRANSPORT CONSULTANCY SERVICES
15.1 Pallavan Transport Consultancy Services (PTCS) was incorporated in April 1984 as a wholly owned company of Government of Tamilnadu with an authorised capital of Rs.5.00 lakhs and paid up capital of Rs.2.00 lakhs. Subsequently, in May 2000 the paid up capital is increased to Rs10 lakhs with authorised share capital of Rs50 lakhs. A Board of Directors appointed by the Government of Tamilnadu supervises the activity of the company.

15.2 PTCS offers Consultancy services in the areas of Management, Information Technology and Traffic and Transportation by a core team of qualified and experienced consultants in the respective fields. The experts/retired Government executives support the core team with experience in the relevant areas on job-to-job basis as and when required. PTCS has started participating in tenders a consortium by associating with reputed Consultancy organisations with rich experience in the relevant fields.

15.3 PTCS is steadily growing since its inception in 1984 despite the competitive nature of Consultancy business. Good potential exists in the fields of Information Technology, Infrastructure Development Road Transport Sector and Managing Services. Efforts are being taken to expand business in these areas. As on 31.3.2000 the Reserve and surplus of the company is Rs.6.93 lakhs. For the year 2000-01, expected income for PTCS is about Rs.53.00 lakhs.

 

16 .0 INSTITUTE OF ROAD TRANSPORT
16.1
The Institute of Road Transport is a registered Society under the Indian Societies Registration Act 1860. This Institute has entered its twenty-fifth year in 2000-2001 and continues to extend its services. The Institute undertakes applied research on issues pertaining to Road Transport and quality monitoring by conducting tests of random samples of spare parts purchased by the State Transport Undertakings in Tamil Nadu besides engaged in imparting training activities on a large scale. The Automobile Research Oriented Engineering College known as Institute of Road and Transport Technology was started in 1984 at Erode. The Perundurai Medical College and Research Centre is functioning from 1986-87. Further, the Institute of Road Transport has also started three Polytechnics at Chrompet (Chennai), Bargur and Tirunelveli in 1992-93.

16.2 Both in the Engineering College and the Polytechnics 50% seats are filled up by Government and the balance are allocated to the wards of employees of State Transport Undertakings on merit. As far as Perundurai Medical College is concerned, the Government fill up 40 seats and 20 seats are allotted to the wards of employees. These institutions are being maintained out of the interest earned on Interest Free Loans contributed by the employees of State Transport Undertakings.

16.3 The Institute of Road Transport is also running a Driver Training Centre at Gummidipundi. The Institute of Road Transport is also running 14 Regional Centres in Tamil Nadu imparting training in driving heavy vehicles. Upto 1999-2000, 25209 Drivers were trained and 3284 candidates are undergoing training during 2000-01 and about 1769 are in the waiting list. Further, the Institute of Road Transport started one Driver Training School at Chrompet for imparting training in driving light motor vehicle and two wheelers from 1997 and one Driver Training Institute at Tiruchirappalli for imparting training in both driving Light & Heavy vehicles.

17.0 MOTOR VEHICLES MAINTENANCE DEPARTMENT
17.1 The Tamil Nadu Motor Vehicles Maintenance Department is a Service Department. It undertakes maintenance and upkeep of all Government vehicles except the vehicles belonging to Public Works Department, Highways, Agricultural Engineering and Health Departments. The number of such vehicles for which this Department is responsible for maintenance and upkeep is about 10,000. There are 20 Government Automobile Workshops in the District Headquarters throughout the State and one Service Station at Chennai inside the Secretariat Compound for undertaking repairs of V.I.P. Vehicles. There are 3 regional Deputy Directors, one each at Trichy, Salem and Madurai, who are supervising and co-ordinating the vehicles repair works in the workshop under their control. The Motor Vehicles Maintenance Department is also operating

Two Consumer Fuel Bunks at Chennai one at Nandanam and the other at the Secretariat Compound and

One each at Thanjavur, Madurai, Salem, Coimbatore Trichy, Dharmapuri, Cuddalore and Nagercoil for the supply of fuel and other lubricants to the departmental vehicles in and around the area.

The objectives of the Motor Vehicles Maintenance Department is to offer reasonable facilities for the economic and efficient maintenance of Motor Vehicles of various Government Departments in the State and to eliminate to a great extent, the dependence on private workshops.

17.2 The following other important activities are also carried out by the Motor Vehicles Maintenance Department: -

- Inspection of old vehicles for issue of condemnation certificates thereon.

- Disposal of those condemned vehicles in Public Auction;

- Issue of approval for private workshops to carryout repairs and retreading of tyres of Government vehicles

- Providing Welfare Schemes to workers and staff

- Auditing the log book of vehicles for their proper usage and cost control

17.3 The Motor Vehicles Maintenance Department has proposed to implement the following schemes during 2001-02 at a recurring expenditure of Rs.2.44 lakhs and non-recurring expenditure of Rs.46.49 lakhs.

a) In order to check the pollution level and take further follow up measures to protect the environment, the workshops at Chennai, Madurai and Coimbatore would be provided with gas analyzer and smoke meter at a cost of Rs.11.75 lakhs;

b) The automobile workshops at Tirunelveli, Nagercoil, Dharmapuri, Erode, Kancheepuram, Trichy, Madurai and Salem will be provided with Electro- mechanical auto lifts at an expenditure of Rs. 12 lakhs;

c) It is proposed to provide essential plant and machinery in the newly opened Government automobile workshops at Villupuram, Virudhunagar and Thoothukudi at an expenditure of Rs. 6 lakhs;

d) Provision has been made to constitute a Computer Cell in the Transport Department at an expenditure of Rs. 6.69 lakhs; and

e) It is proposed to provide float assemblies to the Central Workshop at Chennai at an expenditure of Rs. 4.90 lakhs and other amenities viz. Xerox machines, furniture, Refrigerant, Recovery equipment and telephone facilities at an expenditure of Rs. 7.59 lakhs.

 

18.0 RAILWAYS AND POSTAL etc.
18.1 The Transport Department is the Nodal Agency of the State Government in respect of the Projects implemented by the Southern Railway, Postal, Telecom and Civil Aviation Departments of the Government of India within the State of Tamilnadu.

18.2 As such, according administrative sanction, approval and publication of 4(1) Notification and 6(2) Declaration under the Land Acquisition Act, 1894 (Central Act 1/1894), for acquisition of Lands within the State of Tamilnadu for the above Departments are being done by this Department. This Government is also continuously impressing upon the Government of India on the need to improve the Rail network and Development like broad gauge conversion, extension of Railway line and augmentation of Rail facility in Tamilnadu.

18.3 This Government has agreed to share the cost of Gauge Conversion of Chennai Beach-Tambaram-Chengalpattu Suburban Railway Line on 50:50 basis with the Ministry of Railways, including Conversion of 12 Level Crossing in the Line into ROB/RUB. The cost of the Project is Rs.520.00 Crores. The State Government has released a sum of Rs.42.99 Crores to the Southern Railways against the Railways allocation of Rs.42.99 Crores during the year 1999-2000 and 2000-2001. The State Government have since released a sum of Rs.10.00 Crores as first instalment for the year 2001-2002. Railways have allocated Rs. 32 Crores for the year 2001-2002. This Government has also agreed to share the cost of the Project of connecting Chennai Egmore and Chennai Central Terminals by an elevated Broad Gauge Double Line on 50:50 basis and the cost of the Project is Rs.77.59 Crores.

18.4 The details of the Railway Projects that are being implemented by the Southern Railway at present in the state of Tamilnadu are given below: -

 

Sl.No

 

Name of the Project

Estimate Project cost (Rs. in Crores)

Funds allotted for 2001-02 (Rs. in Crores)

1

New Lines

Karur - Salem (via) Namakkal (85 KM)

229.88

10.00

2

Nagapattinam – Vellankanni (As material modification to Nagore-Tiruchirapalli Gauge conversion) (8.6.Km)

16.93

....

1

Gauge Conversion

Cuddalore –Salem (via) Virudhachalam (191 Km.)

198.68

1.00

2

Nagore -Karaikkal- Tiruchirapalli (200 Km)

138.42

5.00

3

Quilon-Tirunelveli-Tiruchendur and Tenkasi-Virudhunagar (375 Km)

342.50

5.00

4

Villupuram-Pondicherry (38 Km.)

43.00

5.00

5

Rameswaram –Madurai (162 Km)

240.00

1.00

6

Thanjavur –Villupuram (192 KM)

223.00

2.00

7

Tiruchirapalli-Manamadurai (150 Km.)

 

175.00

6.00

8

Villupuram-Katpadi

(161 KM)

175.00

1.00

9

Chennai Beach-Tambaram-Chengalpattu Suburban Line (116 Km)

520.00

32.00 (Railways share)

1

Doubling

Athipattu – Korrukkupettai III Line (18 KM)

 

 

40.00

 

 

2.00

2

Irugur-Coimbatore

(18 KM)

25.11

2.00

 

19.0 MADRAS FLYING CLUB
19.1 The Madras Flying Club was started in the year 1930. This Club was registered under the Tamil Nadu Societies Act, 1975 and is now functioning. On behalf of the Government, the Additional Secretary, Transport Department and Joint Director, Finance Department serve as members in the Managing Committee of the Club. The Committee is convened once in a month.

19.2 This Government is sanctioning fixed subsidy of Rs 3.80 lakhs per annum in four quarterly instalments of Rs. 95,000 each and fuel subsidy towards the cost of aviation petrol beyond the cut-off rate of Rs. 13.80 per litre at the rate of 20 litres per flying hour. The Government have decided to freeze the fuel subsidy at the level of Rs. 3.72 lakhs per annum from the financial year 2001-2002. The Government have issued orders for selection of 10 students for the award of State Government scholarship for PPL training at the rate of Rs. 701/- per flying hour for 60 hours per student and selection of 10 students for award of CPL training scholarship at the rate of Rs. 470/- per flying hour per student annually.

Nainar Nagenthran
Minister for Transport

[Home]   [Policy Notes of Departments]

 
Home
Contents owned and updated by concerned Departments and
coordinated by Information Technology Department
Secretariat, Fort St. George, Chennai 600 009, Tamil Nadu, India
Designed & Developed by National Informatics Centre
E-Mail: webadmin.tn@nic.in