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Transport Department
POLICY NOTE - 2002-2003
DEMAND NO. 46
1.0 Introduction
The Tamil Nadu Government in its endeavour to reach the people with safe, cheap and fast mode of transportation, provides a variety of transport services such as Town, Mofussil, Ghat, Express Services and Inter-State services connecting the neighbouring States, through the State Transport Undertakings under its control.
The following Transport Undertakings and Head of Department are under the administrative control of the Transport Department.
State Transport Undertakings:
1. Metropolitan Transport Corporation. (Chennai) Ltd, Chennai |
2. State Express Transport Corporation Tamil Nadu
Ltd. Chennai |
3. Tamil Nadu State Transport Corporation
(Villupuram –Division I) Ltd., Villupuram |
4. Tamil Nadu State Transport Corporation
(Villupuram Division II) Ltd.,Vellore |
5. Tamil Nadu State Transport Corporation
(Villupuram –Division III) Ltd., Kanchipuram |
6. Tamil Nadu State Transport Corporation
(Salem Division I) Ltd., Salem. |
7. Tamil Nadu State Transport Corporation
(Salem Division II) Ltd., Dharmapuri. |
8. Tamil Nadu State Transport Corporation
(Coimbatore -Division I) Ltd., Coimbatore |
9. Tamil Nadu State Transport Corporation ,
Coimbatore - Division II) Ltd., Erode |
10. Tamil Nadu State Transport Corporation
(Kumbakonam Division I) Ltd., Kumbakonam |
11. Tamil Nadu State Transport Corporation
(Kumbakonam Division II) Ltd., Thiruchirappalli |
12. Tamil Nadu State Transport Corporation
(Kumbakonam Division III) Ltd., Karaikudi |
13. Tamil Nadu State Transport Corporation
(Kumbakonam Division IV) Ltd.,Pudukkottai |
14. Tamil Nadu State Transport Corporation
(Madurai Division I) Ltd., Madurai |
15. Tamil Nadu State Transport Corporation
(Madurai Division II) Ltd., Tirunelveli |
16. Tamil Nadu State Transport Corporation
(Madurai Division III) Ltd., Nagercoil |
17. Tamil Nadu State Transport Corporation
(Madurai Division IV) Ltd., Dindigul |
18. Tamil Nadu State Transport Corporation
(Madurai Division V) Ltd., Virudhunagar |
19. Tamil Nadu Transport Development Finance Corporation Ltd., Chennai. |
20. Pallavan Transport Consultancy Services Ltd, Chennai. |
21. Institute of Road Transport, Chennai. |
22. Motor Vehicles Maintenance Department, Chennai. |
The Transport Department is also the Nodal Agency in the State Government in respect of projects implemented by the Southern Railway, Postal and Telecommunications Departments and the Civil Aviation Departments of the Government of India, within the State of Tamil Nadu.
2. State Transport Undertakings:
2.1. Till 1971, the Nationalised Transport activities were under the control of the State Transport Department. After 1971, this was entrusted to the various Transport Corporations registered under the Companies Act 1956.
The structure and performance of the various Transport Corporations were examined in depth by various Committees at different times (Pattabiraman Committee-1976, Thillainayagam Committee -1990) and their recommendations were implemented wherever possible. In 1998, S.V.S.Raghavan Committee on restructuring of Public Sector Enterprises in Tamil Nadu has also given certain suggestions, many of which have been implemented. Some other recommendations such as partial privatisation are under consideration.
2.2 As on 31.03.2002 the STUs are offering the following services and their performance is as below:
Chennai Metro-City Services |
2582 |
Town Services (in Districts) |
5598 |
Mofussil Services |
5775 |
Express Services |
813 |
Ghat Services |
503 |
Total |
15271 |
Spares and Repairs |
1526 |
Total Fleet Strength |
16797 |
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2. Total Kilometre operated per day |
61.25
(Lakh K.M) |
3. Total Passenger carried per day |
162.31
(in Lakhs) |
4. % of Fleet Utilisation |
90.20% |
5.Kilometre Efficiency (Excluding Specials) |
95.15% |
6. Kilometre Efficency (Including Specials) |
98.26% |
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7. % of Occupancy Ratio |
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a) City and Town |
71.14% |
b) Mofussil |
87.39% |
c) Express |
80.37% |
d) Ghat |
99.41% |
e) Overall |
79.69 % |
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8.Break down per 10,000 K.M. |
0.31 |
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9. Accidents per 1,00,000 K.M. |
0.37 |
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Total Accidents |
8281 |
Fatal Accidents |
1332 |
No. of Persons dead |
1661 |
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10. Fuel Performance (Kmpl) |
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a) City and Town |
4.13 |
b) Mofussil |
4.50 |
c) Express |
4.36 |
d) Ghat |
3.37 |
e) Over all |
4.30 |
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11. Engine Oil per 10,000 K.M. |
12.13 Litres |
12. KM Run per condemned tyre |
1.54 Lakh/km |
13.Retreading Factor |
3.98 |
14.Men/Bus |
6.98 |
2.3 Amalgamation of State Transport Undertakings:
In order to reduce the administrative overheads and to avoid wasteful competition in the operation of services among the Corporations, it was decided to amalgamate some of the Transport Corporations. Amalgamations of MTC-II with MTC-I, TNSTC (CBE.Dn.III) with TNSTC CBE.Dn.I), and SETC (TN-Dn.II) with SETC (TN-Dn.I) have been completed with effect from 10.01.2001, 07.11.2000 and 12.1.2002 respectively. In respect of other State Transport Undertakings, the draft amalgamation proposals have been sent to the Government of India for approval. The approval from Government of India is awaited. Details of amalgamation are given below
Sl.
No |
Name of Corporation |
Name of the amalgamated Corporations |
Remarks |
1 |
Metropolitan Transport Corporation (Chennai- Division I) Ltd. Chennai. |
2 |
Metropolitan Transport Corporation (Chennai- Division II) Ltd. Chennai. |
3 |
State Express Transport Corporation (Tamil Nadu Division I ) Ltd. Chennai. |
4 |
State Express Transport Corporation (Tamil Nadu Division II ) Ltd. Chennai. |
5 |
Tamilnadu State Transport Corporation (Villupuram Division I) Ltd. Villupuram. |
6 |
Tamilnadu State Transport Corporation (Villupuram Division II) Ltd. Vellore. |
7 |
Tamilnadu State Transport Corporation (Villupuram Division III) Ltd. Kanchipuram. |
8 |
Tamilnadu State Transport Corporation (Salem Division I) Ltd. Salem. |
9 |
Tamilnadu State Transport Corporation (Salem Division II) Ltd. Dharmapuri. |
10 |
Tamilnadu State Transport Corporation (Coimbatore Division I) Ltd. Coimbatore. |
11 |
Tamilnadu State Transport Corporation (Coimbatore Division II) Ltd. Erode. |
12 |
Tamilnadu State Transport Corporation (Coimbatore Division III) Ltd. Ooty |
13 |
Tamilnadu State Transport Corporation (Kumbakonam-Division-I) Ltd. Kumbakonam. |
14 |
Tamilnadu State Transport Corporation (Kumbakonam-Division II) Ltd. Trichy. |
15 |
Tamilnadu State Transport Corporation (Kumbakonam-Division III) Ltd. Karaikudi. |
16 |
Tamilnadu State Transport Corporation (Kumbakonam-Division IV) Ltd. Pudukkottai. |
17 |
Tamilnadu State Transport Corporation (Madurai-Division I) Ltd. Madurai. |
18 |
Tamilnadu State Transport Corporation (Madurai -Division II) Ltd. Tirunelveli. |
19 |
Tamilnadu State Transport Corporation (Madurai -Division III) Ltd. Nagercoil. |
20 |
Tamilnadu State Transport Corporation (Madurai -Division IV) Ltd. Dindigul. |
21 |
Tamilnadu State Transport Corporation (Madurai -Division V) Ltd. Virudhunagar. |
After amalgamation, 21 Transport Corporations will be merged into 7 Corporations bringing down the overhead costs.
3.0 Financial Position of the State Transport
Undertakings:
3.1 The State Transport Undertakings have been incurring continuous losses for several years due to low fare structure and high costs of operation. The accumulated loss up to March 2002 is Rs. 2160.52 Crores as detailed below.
(Rs. in crores)
Year |
Loss |
Upto 31.03.1991 |
(-) 164.13 |
1991-92 |
(-) 21.78 |
1992-93 |
(-) 50.46 |
1993-94 |
(-) 48.03 |
1994-95 |
(-) 41.21 |
1995-96 |
(-) 207.37 |
1996-97 |
(-) 310.67 |
1997-98 |
(-) 229.37 |
1998-99 |
(-) 411.39 |
1999-2000 |
(-) 317.91 |
2000-01 |
(-) 228.86 |
2001-02 (upto March –subject to Audit) |
(-) 129.34 |
Total |
(-) 2160.52 |
The fares fixed periodically by Government have not been commensurate with the increases in the cost of operation, especially in diesel and establishment expenditure. However, in December 2001, Government of Tamil Nadu have given increase in fares which will go a long way in improving the bottom line of the Corporations.
3.2 Increase in Diesel Cost
The expenditure on consumption of diesel for the buses of State Transport Undertakings has gone up from Rs.229.23 Crores in 1991-92 to Rs.406.15 crores during 1995-96, Rs.916.10 crores during 2000-01 and Rs. 958.82 Crores in 2001-02 (upto March). However, the fuel performance of State Transport Undertakings almost remains constant at the level of 4.30 k.m per litre.
3.3. Increase in Establishment Expenditure
Wage revisions are given to the employees of the Corporation through negotiated settlement. 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 38% to 53% 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 which was at the level of Rs. 388 Crores in 1991-92 has increased to Rs. 755.19 crores during 1995-96, Rs.1312.49 crores during 2000-01 and stood at the level of Rs.1269.30 Crores in 2001-02 (upto March ).
4.0 Replacement of Overaged Buses
4.1 The State Transport Undertakings could not purchase adequate number of new buses for replacement during the last 4 years due to losses incurred by the State Transport Undertakings. The number of over-aged buses to be replaced as on 31.03.2002 is 6123 buses (36.45% of the total fleet). For 2001-02 the State Transport Undertakings proposed to purchase 1550 buses. 305 buses were purchased upto March 2002 and the balance will be purchased in the coming months. Tamil Nadu Transport Development Finance Corporation Limited has availed a loan of Rs.100 crores from Life Insurance Corporation of India for on-lending to the State Transport Undertakings for the purchase of approximately 1000 buses towards replacement.
It is proposed to purchase a further 2275 buses towards replacement during 2002-03 at a cost of Rs.227.50 Crores from loans to be extended by Transport Development Finance Corporation.
4.2 Loan position:
The outstanding loan of the State Transport Undertakings which stood at a level of Rs.595 Crores as on 31.3.1996 has risen to Rs.1082 Crores as on 31.03.2002.
This has led to high interest commitments and delays in making payments to suppliers of fuel, spares and other statutory commitments in time
5.0 Comparison of Fare structure prevailing in other States:
Due to low fare structure and increased cost of inputs, the losses of State Transport Undertakings stood at a higher level. Considering the above facts, the Government revised the bus fare from 1.12.2001 and the same was reduced marginally from 6.12.2001. Due to revision of bus fare, the State Transport Undertakings would make reduced losses in the current year. Present fare structure for Mofussil Express Services in Tamilnadu with comparative figures of other Southern States is given below.
(In Paise)
State |
Fare Effect from |
Mofussil (Ordy) |
Mofussil (LSS) |
Mofussil Express |
Deluxe |
Super Deluxe |
Tamil Nadu |
6.12.2001 |
28 |
- |
- |
32 |
38 |
Andhra |
4.10.2000 |
32 |
- |
37 |
44 |
52 |
Kerala |
1.10.2001 |
35 |
43 |
46 |
54 |
63 |
Karnataka |
4.10.2000 |
25.75 |
- |
32 |
38.75 |
46 |
It may be seen that the fare structure of Tamil Nadu is still among the lowest.
6.0 Road Safety and Prevention of Accidents
This Government gives primary importance to road safety, reduction and avoidance of accidents. Intensive training to drivers, refresher courses, and reduction of driving stress by encouraging recreation and relaxation, implementation of a revised system of rewards for safe driving are some of the measures which are implemented for accident free driving.
The accident compensation commitment has gone up drastically from 16.03 Crores in 1991-92 to 73.30 Crores in 2000-2001 due to exponential increase in traffic on the roads. The details of measures taken by State Transport Undertakings to avoid accidents are given below:
6.1. 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.
6.2 Safety clinics and brain storming sessions are organised in the Driver Training Schools to educate the accident-prone Drivers on defensive driving practices.
6.3. The Road Safety Patrolling is arranged continuously to identify the Drivers who violate traffic rules and laws and initiate suitable action against them.
6.4 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 good driving habits and accident-free record. With a view to create a cadre of efficient Drivers, the Corporations have established Driver Training Schools.
6.5 Drivers who have performed line duty without any accident for the continuous period of ten years are granted one special increment.
6.6 Refresher courses are conducted in the Driver Training School, to create awareness among Drivers for prevention of accidents. The Driving Range at Gummidipoondi has been improved at a cost of Rs.80.00 lakhs. .
6.7 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 Drivers trained in Institute of Road Transport.
6.8 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.
6.9 The Government of Tamilnadu has instructed STUs that in order to reduce the accidents due to Drivers’ fatigue, Drivers should not be allowed to drive the buses for more than four hours continuously during night time.
7.0 Amenities to the Travelling Public:
7.1 Bus shelters (ordinary and glow sign types) have been constructed through sponsors at various bus stops, in which name of bus stop and routes passing through the stop are displayed for the convenience of the passengers.
7.2 In order to make use of the 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. The same will be extended to other bus terminals.
7.3 MTC has provided inter-transfer facility for two wheelers by giving sufficient space in bus terminals for parking of two wheelers.
7.4 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.

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