The Government of India periodically revises the price of the Petroleum products depending upon the varying global prices. But the bus fare is not raised periodically to commensurate with the increase in the cost of the Diesel and other petroleum products. The expenditure on consumption of diesel for the buses of State Transport Undertakings has gone up from Rs.229.22 Crores in the year 1991-92 to Rs.1061.31 Crores (provisional) in the year 2002-2003.

3. 3. Increase in Establishment Expenditure

Wage revisions are given to the employees of the Corporation through negotiated settlement. The average increase in emoluments for an employee in State Transport Undertaking 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 the year1991-92 has gone upto Rs. 1366.10 Crores (provisional) in the year 2002-03.

3. 4 Extent of coverage of expenditure

The State Transport Undertakings have not been able to increase the revenue on par with the increase of expenditure on establishment, diesel and other input costs. The Government of India have revised the price of Petroleum products many times since December 2001 when the bus fare was last revised. However, the State Government has not increased the bus fare after December 2001. Hence, the gap between the revenue and expenditure has been persistent.

3. 5 Outstanding Liabilities

In order to keep up the operations, the State Transport Undertakings 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 State Transport Undertakings have fallen into debt trap. The financial institutions are not prepared to extend any further loan to the State Transport Undertakings because of higher loan burden.

The State Transport Undertakings have virtually landed in financial mess with heavy outstanding liabilities towards the supply of fuel, spares and statutory dues. The position as on 31.03.2003 is given below:

Due to financial difficulties, the State Transport Undertakings are unable to replace the over aged buses in time and also to procure spares to keep the operation going.

Over the years, the accumulated losses of State Transport Undertakings have gone up steadily. The accumulated loss upto 31.03.2003 is Rs.2150.53 Crores. The State Transport Undertakings have an accumulated liability of Rs.430.67 Crores as on 31.03.2003 towards Diesel, Spare Parts, Statutory Liabilities and Accident Claims etc. As on 31.03.2003, a Loan of Rs.975.69 Crores is outstanding to Financial Corporations. Due to precarious financial position, most of the State Transport Undertakings were unable to pay interest and principal due before fare revision. The amount defaulted in the current year upto 31.03.2003 alone is Rs. 213.07 Crores. The interest commitments to State Transport Undertakings have gone up from Rs.77.77 Crores in the year 1995-1996 to Rs.141.30 in the year 2002-2003.

4. 0 Replacement and increase in fleet strength:

The State Transport Undertakings could not purchase adequate number of new buses for replacement during the past few years due to heavy loss incurred by the State Transport Undertakings. The number of over-aged buses to be replaced as on 31.03.2002 was 6123 buses which is 36.5% of the total fleet. Due to the efforts taken by this Government, the State Transport Undertakings were able to purchase 1047 new buses during the current year upto March 2003, out of which 1031 new buses have already been put on road. The balance 16 buses are under construction as on 31.3.2003. Hence the number of buses which has to be replaced as on 31.03.2003 is 6376 Buses, which is 38.2% of the total number of buses. It has been proposed to purchase 300 buses during the year 2003-2004 at a cost of Rs.30.00 Crores by the loan amount to be extended by Transport Development Finance Corporation.

5. 0 Comparison of Fare structure prevailing in other States:

The accumulated heavy losses and the increased cost of the inputs in operation lead the State Transport Undertakings to a grave financial situation, which necessitated for the revision of fare. Hence, the Government with a view that the State Transport Undertakings should run self sufficiently without any external loans, marginally increased the bus fare with effect from 6.12.2001.

Even then, the fare in Tamil Nadu is the lowest when compared with the fare structure in the adjacent states. The present fare structure for Mofussil services in Tamil Nadu with comparative figures of other important neighbouring States is given below:

(In Paise per K.M.)

It may be seen from the above table that the fare in Tamil Nadu is still lower than the neighbouring States.

6. 0 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.104.12 Crores (provisional) in the year 2002-2003. Hence, the Government gives much more importance for accident prevention measures to reduce the road accidents involving State Transport Undertaking buses. This Government gives primary importance to road safety, reduction and avoidance of accidents. The role of the drivers are very important in avoiding accidents. Regular refresher trainings, Yoga, safety clinics, brain storming sessions in driver training schools, safety driving award schemes, special increment to the drivers who performs duty without any accident for 10 years etc. are some of the measures taken 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 weeks training on driving heavy transport vehicles. They are also trained in attending to repairs in the heavy vehicles, first aid etc. They are given priority for appointment in State Transport Undertakings. The Government have also ordered pass in SSLC / 10th Std. instead of 8th Std. as Minimum Educational Qualification for appointment of drivers in State Transport Undertakings. In certain State Transport Undertakings, 2 drivers have been introduced for driving the long distance vehicles during night journeys to reduce driver's fatigue.

7. 0 AMENITIES TO THE TRAVELLING PUBLIC:

In certain important bus stands and bus stops in Chennai City and other important cities, glow sign advertisements have been provided for better security of passengers. Inter-transfer facilities have been provided in certain bus terminals for parking the two wheelers of the commuters. As the operation of Metro and long distance buses have been shifted to the new Chennai Metropolitan Bus Terminus at Koyambedu, the Metro Transport Corporation has introduced many buses in new routes to enable the commuters to reach the Koyambedu Bus Stand. As the operation of the Moffusil buses and long distance buses have been shifted from the Broadway Mofussil Bus Terminus and State Express Transport Corporation Bus Stands at Parrys Corner, the various Metropolitan Transport Corporation buses which were hitherto stopped in and around Madras High Court on the road as a hindrance to the traffic, have been shifted inside the Old Moffusil Bus Terminus and State Express Transport Corporation Bus Terminus. Hence the traffic congestion in this area has been heavily reduced and passengers safety and amenities have been enhanced.

8. 0 TRAVEL CONCESSIONS

In Tamil Nadu, concessions for travel in the buses of State Transport Undertakings, are being given to some categories. They are - Members of Legislative, Members of Parliament, ex-Members of Legislative and Council, Students, Accredited Journalists, Drama Artistes, Freedom fighters drawing Central/State pension and those who participated in Border/Language stir or widows and legal-heirs of freedom fighters drawing Central Pension or State Pension or wife or husband and minor legal-heirs of those who participated in the language stir to protect the Tamil Language and who are receipients of financial assistance from Government, Cancer patients, Physically handicapped, Deaf, Blind, Mentally retarded and epileptic patients.

8. 1 Student Concession

During the current year State Transport Undertakings, requested reimbursement of a sum of Rs.252.00 crores towards student subsidy. However, due to the stringent economic position of the Government, the Government have proposed to release a sum of Rs.85.76 crores alone as reimbursement of student subsidy to three very sick State Transport Undertakings and have requested other State Transport Undertakings to meet this amount as social cost.

During the year 2002-2003, 23,44,068 students were benefited by this concession. The State Transport Undertakings are usually accepting the balance cost of the student concession apart from the amount collected from them and subsidy received, as social cost for the welfare of the students.

9. 0 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.

Travel As You Please Tickets (only in MTC)

Passengers can travel anywhere in the city by purchasing tickets at the following rates subject to the conditions printed in the ticket.

1) Holiday one day ticket : Rs. 30/-

2) Weekly ticket : Rs.160/-

3) Monthly ticket : Rs.600/-