Transport Department

POLICY NOTE 2006-2007

DEMAND NO. 48

1. Introduction

The Southern Railway undertakes from time to time many projects to either start new lines or upgrade the existing lines in the State. Similarly, the Departments of Post and Telecommunications and the Ministry of Civil Aviation of the Government of India undertake various projects in the State. To co-ordinate with these Central Organisations, the Transport Department has been chosen as the Nodal Agency of the State Government.

2. State Transport Undertakings

2. 1 The transport operations were, to start with, under the direct control of the Government till 1971, when they were brought under various Transport Corporations registered under the Companies Act, 1956.

Thereafter, the Government appointed two Committees of Experts called the Pattabiraman Committee in 1976 and the Thillainayagam Committee in 1990 to study, in depth, the existing operations of the State Transport Undertakings and suggest measures to improve them. The recommendations of these Expert Committees have been implemented wherever possible.

2. 2 Amalgamation of State Transport Undertakings

As a step towards streamlining the operations of State Transport Undertakings leading to reduction in the administrative overhead expenses and avoidance of wasteful competition in the operation of services among the Corporations, the Government amalgamated 21 Transport Corporations into 7 Transport Corporations. The present arrangement of Transport operations in the State is compact and efficient.

2. 3 As on 30.6.2006, the State Transport Undertakings are offering the following services:

Achievement in Operation

The State Transport Undertakings have operated 240.70 crores Kilometres during 2005-06 with an increase of 3.74 crores Kilometres over the same for the year 2004-05. The overall Kilometres efficiency has improved from 102.58% (2004-05) to 103.07% (2005-06). Single day highest collection by all State Transport Undertakings together made on 15.5.2006 is Rs. 12.90 Crores.

2.4 Performance

The State Transport Undertakings have been consistently bagging national awards in achieving the best physical parameters. Especially, our best performance is in fleet utilisation, Kilometres efficiency, Occupancy Ratio, Fuel efficiency. It must be added that these performances have been achieved under difficult circumstances.

3. Financial Position of the State Transport Undertakings

3.1 Despite good performance in the physical parameters, the financial health of the State Transport Undertakings has been under pressure. Due to the increase in the establishment and operational costs and the fare per Kilometre being maintained as the lowest in the country, the overall expenditure of the State Transport Undertakings has increased and this has led to loss of Rs.397.36 crores (Pre Audit) during 2005-06. The expected loss for 2006-07 is Rs.513 crores.

3.2 Consumption of High Speed Diesel Oil and Lubricants

There is considerable improvement in use of High Speed Diesel Oil and lubricant and the Kilometre per Litre of HSD Oil consumed has improved from 4.72 (upto June-05) to 4.94 (upto June-06). The approximate savings on account of improvement in KMPL is around Rs.19 crores (upto June-06). Similarly, the engine oil consumption per 10000 Kms. has come down from 7.27 litres to 6.37 litres (upto June-06).

3.3 Increase in Diesel cost

The Government of India periodically revises the price of the Petroleum products depending upon global prices. But, the bus fare is not raised correspondingly in commensurate with the increase in the cost of the Diesel and other petroleum products. Due to frequent increase in HSD Oil price, the expenditure on consumption of diesel for the buses of State Transport Undertakings has gone up from Rs.1354 Crores in the year 2004-2005 to Rs.1566 Crores in the year 2005-2006 i.e. an additional expenditure of Rs.212 crores. This expenditure is likely to go up further during the current year.

3.4 Outstanding Liabilities

Because of continuous losses, the State Transport Undertakings are facing the following outstanding liabilities as on 30.06.2006:

4. Replacement and increase in fleet strength

There will be an induction of 1000 buses for which the Government have provided Rs.100 Crores in the current year. Apart from this, the State Transport Undertakings will introduce another 1000 new buses by availing loans from the Tamilnadu Transport Development Finance Corporation during 2006-07. Replacement and augmentation of the fleet will be undertaken as a regular exercise in future.

5. Comparison with fare structure prevailing in other States

The fare per Kilometre in Tamilnadu is the lowest in the country. The existing fare structure for Mofussil services in Tamilnadu with comparative figures of neighbouring States is given below.

(In Paise per K.M.)

The fare in Tamilnadu has not been revised since December 2001 in the interest of the travelling public.

6. Road safety and prevention of accidents

The accident compensation commitment has gone up drastically from Rs.16.03 crores in the year 1991-92 to Rs.116 crores (Pre-Audit) in the year 2005-2006. Hence, the Government accorded importance to accident prevention measures to reduce road accidents involving State Transport Undertaking buses. This Government's focus is on road safety, reduction and avoidance of accidents. As the role of the drivers is very important in avoiding accidents, regular refresher trainings, Yoga classes, safety clinics, brain storming sessions in driver training schools, safety driving award schemes, special increment to the drivers who perform duty without any accident for 10 years etc. are being undertaken by the State Transport Undertakings to ensure safe driving by the drivers of State Transport Undertakings. The Institute of Road Transport selects young and energetic youths who have completed SSLC for an intensive 12 week training on driving heavy transport vehicles. They are also trained in attending to repairs in heavy vehicles, first aid etc. They are given priority in appointment in State Transport Undertakings. The Government have also ordered that a pass in SSLC / 10th Std. instead of 8th Std. should be the Minimum Educational Qualification for appointment of drivers in State Transport Undertakings. In certain State Transport Undertakings, system of 2 drivers has been introduced for driving the long distance vehicles during night journeys to reduce driver's fatigue.

7. Amenities to the travelling public

In certain important bus stands and bus stops in Chennai City and other important cities, glow sign advertisement Boards have been provided for better security of passengers. To facilitate Inter-transfer service, provision for parking the two wheelers of the commuters at the bus stands has been made. As the operation of Metropolitan and long distance buses have been shifted to the new Chennai Mofussil Bus Terminus at Koyambedu, the Metropolitan Transport Corporation has introduced many buses in new routes to enable the commuters to reach the Koyambedu Bus Stand. Consequently, the various Metropolitan Transport Corporation buses which were hitherto stopped in and around Madras High Court on the road which was a hindrance to the traffic, have been shifted inside the Old Mofussil Bus Terminus. Hence, the traffic congestion in this area has been heavily reduced and passengers’ safety and amenities have been enhanced.

8. Travel concessions

This Government have given travel concessions for travel in State Transport Corporation buses to the following categories of persons:

1. Members of Parliament, Members of Legislature, Ex-Members of Parliament, Legislative Assembly and Council.

2. Students

3. Accredited Journalists

4. Freedom Fighters drawing Central/State Pension and those who participated in Border/Language stir, Widows and Legal-heirs of Freedom Fighters drawing Central Pension/State Pension or Wife/Husband and minor legal-heirs of those who participated in Language stir to protect Tamil Language and those who are recipients of financial assistance from Government.

5. Cancer Patients, Physically handicapped, Deaf, Blind, Mentally Retarded and epileptic patients.

6. Drama Artists

8. 1 Concession to Students

With a view to benefitting all students and to give a real meaning to the concept of Education for all, all students studying from Standard I to Standard XII in all schools including private schools are provided with Free Travel Bus Passes to travel from residence to school and back. The free school bus passes will be valid on all days including holidays. Similarly, the students studying in all colleges including private colleges will be given 50% concessional travel bus passes to travel from residence to Colleges, Polytechnics, ITIs and Private Arts Colleges and back. These passes will be valid on all days including holidays. Exchange tokens upto 60 in number are issued to the College students travelling in MTC buses to travel to the Library and back to their residence.

During the year 2005-2006, twenty-five lakhs students were benefited. The subsidy to be paid by the Government to the Transport Corporations comes to Rs.279 crores. The entire face value of the ticket is reimbursed by the Government in respect of passes issued by the Metropolitan Transport Corporation (Chennai) Ltd., in Chennai city, and in respect of Mofussil Transport Corporations the ticket cost is shared between the Government and the Corporation in the ratio of 56:44.

8.2 Concessions to commuters

For the benefit of general passengers, Monthly Season Tickets are issued collecting the LSS fare equivalent to 40 trips from the origin to destination for travel up and down on all days in a month in the Metro and Town services.

8.3 Travel As You Please Tickets

Passengers can travel anywhere in Chennai, Madurai, Coimbatore, Salem, Tiruchy and Tirunelveli Municipal / Corporation areas by purchasing tickets at the following rates subject to the conditions printed in the ticket.

1) One day ticket : Rs. 30/-

2) Weekly ticket : Rs.160/-

3) Monthly ticket : Rs.600/-

8.4 Concession for group reservation

10% discount on fare is given in the buses of State Express Transport Corporation when reservation is done for 8 or more members as a group.

8.5 Concession for Senior Citizens

10% discount on fare is given in the buses of State Express Transport Corporation when reservation is done by Senior Citizen who has completed 60 years of age.

9. Labour Welfare Measures

The State Transport Undertakings are implementing the following welfare measures for the welfare of the workers and their families.

1) Service weightage

2) Free Travel passes to the children of the employee

3) Subsidised canteen facilities

4) Education allowances

5) Allowances with wages

6) Reimbursement of legal fees

7) Uniform

8) Family Benefit Fund

9) Marriage Loan

10) Steering Allowance

11) Voluntary Retirement Scheme

12) Leave benefits

13) Holiday Home

14) Special Health Fund Scheme

15) Medical College, Engineering College and Polytechnics for the children of employees

16) The Pension Scheme for Transport employees

17) Employees' Post-Retirement Benefit Fund Scheme

18) Funeral expenses.