Transport Department

POLICY NOTE 2005-2006

DEMAND NO. 46

1. Introduction

Transport is the essential convenience with which people not just connect but progress. Throughout history, people's progress has been sustained on the convenience, speed and safety of the modes of transport. Road transport occupies a primary place in to-day's world as it provides a reach unparalled by any other contemporary mode of transport.

The Transport Department has control over 7 State Transport Undertakings, Tamil Nadu Transport Development Finance Corporation Limited, Pallavan Transport Consultancy Services Limited, Institute of Road Transport and the Motor Vehicles Maintenance Department.

The Transport Department is also the Nodal Agency of the State Government in respect of projects implemented by the Southern Railway, Departments of Postal and Tele-communications and the Civil Aviation of the Government of India, in the State of Tamil Nadu.

2. 1 Till 1971, State Transport operations were under the control of Tamil Nadu Government. After 1971, this was entrusted to various Transport Corporations registered under the Companies Act, 1956.

The Pattabiraman Committee in 1976 and the Thillainayagam Committee in 1990 gave various recommendations for the improvement of the State Transport Undertakings and they were implemented wherever possible.

2. 2 As on 31.1.2005, the State Transport Undertakings are offering the following services and their performance is as below:

2. 3 Amalgamation of State Transport Undertakings:

In order to reduce the administrative overhead expenses and to avoid wasteful competition in the operation of services among the Corporations, the Government have amalgamated 21 Transport Corporations into 7 Transport Corporations. The Government of India notified the amalgamation of the State Transport Undertakings and now only 7 State Transport Undertakings are functioning in Tamil Nadu.

3.1 In spite of the increase in the establishment and operational costs and the fare per Kilometre being the lowest in the country, the overall expenditure of the State Transport Undertakings was successfully contained by better management practices during the year 2003-04. The State Transport Undertakings have earned an overall profit of Rs.2.38 crores for the year 2003-04 after a gap of 18 years. However, the accumulated loss upto March 2004 is Rs.2131.88 crores.

The progressive trend established in 2003-04 was sustained and the State Transport Undertakings are likely to end up with more profit at the end of the year 2004-05. The overall profit for 2004-05 is expected to be around Rs.14 crores. This is mainly due to the able administration of the Corporations.

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 4.45 (2003-04) to 4.60 (upto January 2005). The approximate savings on account of improvement in KMPL is around Rs.42.70 crores upto January 2005. Similarly, the engine oil consumption per 10000 Kms. has come down from 9.58 litres to 7.85 litres during the current year upto January 2005. The approximate savings on account of this is around Rs.1.50 crores (upto January 2005).

3.3 Increase in Diesel cost

The Government of India periodically revise the price of the Petroleum products depending upon the varying global prices. But the bus fare is not raised correspondingly to commensurate with the increase in the cost of the Diesel and other petroleum products. Due to frequent increase in HSD Oil price, it is estimated that the expenditure on consumption of diesel for the buses of State Transport Undertakings will go up from Rs.1171.07 Crores in the year 2003-2004 to Rs.1356.58 Crores in the year 2004-2005 i.e. an additional expenditure of Rs.185.51 crores.

The seven Tamil Nadu State Transport Corporations have entered into an agreement with the Indian Oil Corporation Limited and other two Corporations for the supply of High Speed Diesel Oil at concessional rate. According to the terms and conditions of this agreement, the Oil Corporations have agreed to extend a discount of Rs.700/- per Kilolitre with effect from 1.10.2003 and the agreement is valid upto 31.3.2005. By way of this discount the Tamil Nadu State Transport Undertakings saved an amount of Rs.30.00 crores during the period from April 2004 to January 2005 on the fuel cost. Further, the Tamil Nadu State Transport Corporations have entered into an agreement with M/s. Reliance Petroleum Marketing Private Limited in respect of supply of HSD Oil for 20 depots with a discount of Rs.1,300/- per Kilolitre for a period of six months from 1.4.2005 as a trial measure which will result in additional savings to the tune of Rs.1.23 crores. Efforts are being taken with the Public Sector Undertaking Oil Companies to match this discount for a period of six months from 1.4.2005.

3.5 Increase in Establishment Expenditure

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.388.00 Crores in the year 1991-92 is estimated to be Rs. 1503.47 Crores for the year 2004-05.

As a measure of promoting goodwill the employees of Tamil Nadu State Transport Corporations have given the following benefits to the employees:-

Interim Relief at the rate of Rs.250/- per month was given to all employees covered by Wage Settlement with effect from 1.9.2003, as the wage settlement talks could not be commenced due to litigation.

The period during which the employees went on strike prior to 31.12.2000 was treated as eligible leave except in respect of employees against whom criminal cases are pending.

Bonus of 8.33% was given besides an ex-gratia of 1.67% for the financial year 2003-2004 without any ceiling limit for the purpose of eligibility to all the employees.

All the workers and employees of Tamil Nadu State Transport Corporations have been allowed to encash 15 days of Earned leave at their credit in a year without actually going on leave as per the usual annual cycle as a special case.

The Government of India have revised the price of petroleum products periodically, whereas the bus fare in Tamil Nadu, revised last in December 2001, still remain the lowest in the country. However, the State Transport Undertakings have been successfully able to meet the additional expenditure on establishment, diesel oil and other input costs by better maintenance practices, improved operation resulting in increase in revenue and stringent control on expenditure.

The following are the outstanding liabilities of the Corporations, as on 31.01.2005, which is the result of continuous losses suffered by the Corporation in the earlier years.

Special efforts are taken to minimise the outstanding liabilities.

In the Governor's address on 31.1.2005, it was announced that the Tamil Nadu State Transport Corporations are replacing 1325 buses this year and a further 2000 buses will be replaced during the next financial year. 4848 defective buses have been repaired at a cost of Rs.30.48 crores to make them road worthy and safe to travel in. This has completely upgraded the services offered by the Tamil Nadu State Transport Corporations. All these service improvements have been taken up without any fare revision, despite the impossible burden posed by the steep hike in diesel prices by the Government of India.

975 chassis have been received for the year 2004-2005 (upto January 2005). Out of this, body building work completed for 798 buses and the work is under progress for the remaining 177 chassis.

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.)

It may be observed from the above Table that the fare in Tamilnadu still remains the lowest and has not been revised since December 2001 in the interest of the travelling public.

The accident compensation commitment has gone up drastically from Rs.16.03 crores in the year 1991-92 to Rs.113.00 crores in the year 2004-2005 (upto January 2005). Hence, the Government gave importance for 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 some of the measures introduced 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 for appointment in State Transport Undertakings. The Government have also ordered that a pass in SSLC / 10^th Std. instead of 8^th Std. as 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.

In view of the continuous action taken for the safe operation of buses, the accident rate has been restricted.

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 Moffusil 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 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.

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

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

• Students

• Accredited Journalists

• 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 receipients of financial assistance from Government.

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

• Drama Artists

With a view to benefit all students and to give a real meaning to the concept of Education for all from the new academic year starting from 1st June 2004, 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 their residence to school and back to their residence. The free school bus passes will be valid on all days including all holidays. Similarly, the students studying in all colleges including private colleges will be given 50% concessional travel bus passes to travel from their residence to colleges, polytechnics, ITIs and Private Arts colleges and back to their residence with effect from 1st June 2004. These passes will be valid on all days including all holidays. Exchange tokens up-to 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 2004-2005, Twenty-four lakhs (24 lakhs) students were benefited. The subsidy to be paid by the Government under this new scheme to the Transport Corporations comes to Rs.270 crores. The amount to be collected from the student comes to Rs.17.00 crores. The State Transport Undertakings are bearing the balance cost of the student concession apart from the amount collected from them and subsidy received, as a social responsibility for the welfare of the students

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.

Passengers can travel anywhere in the city 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/-

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.

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

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

• Service weightage

• Free Travel passes to the children of the employee

• Subsidised canteen facilities

• Education allowances

• Allowances with wages

• Reimbursement of legal fees

• Uniform

• Family Benefit Fund

• Marriage Loan

• Steering Allowance

• Voluntary Retirement Scheme

• Leave benefits

• Holiday Home

• Special Health Fund Scheme

• Medical College, Engineering College and Polytechnics for the children of employees

• The Pension Scheme for Transport employees

• Employees' Post-Retirement Benefit Fund Scheme

• Funeral expenses.

The Government announced a policy decision in the year 2002-2003 and have proposed to go in for phased liberalisation of select routes, services and operations in the bus transport sector.

Based on the recommendation of the High Level Committee constituted to work out the modalities for phased liberalisation, the Government decided to modify the Area Scheme in such a way that the permits transferred to the private operators by the State Transport Undertakings are excluded from the Area Scheme of Nationalisation and draft notifications amending the Area Scheme were notified in the Gazette on 12.11.2002. Certain individuals filed Writ Petitions before the High Court challenging the draft notifications. The matter is pending before the High Court. As soon as the verdict of the Court is received, further action will be taken.

In order to reduce the cost of operation, various austerity measures have been undertaken by the State Transport Undertakings.

a. Recruitment of further staff in all categories has been stopped including replacement for retired employees.

b. Creation of new posts has been banned in all categories.

The State Transport Undertakings are having operative fleet strength of 15320 buses and 1453 spare buses. State Transport Undertakings have operated 198.40 crores K.Ms with an increase of 3.72 crores K.Ms for the year 2004-05 (upto January 2005) when compared to the corresponding period of previous year. The overall K.M. efficiency improved from 101.74% (2003-04) to 102.49% (2004-05 upto January)

The norm for overall Men per bus ratio has been revised from 7.50 to 6.50. The men per bus as on 31.1.2005 is 6.88.

In order to reduce the expenditure on accident claim compensation and to settle the claim early, the State Transport Undertakings have been instructed to settle the claims through Lok Adalat and reach mutual settlement of accident claims and thus save huge amount to the State Transport Undertakings. So far, about Rs.3.75 crores was saved upto 31.01.2005.

The employees of all State Transport Undertakings including Tamil Nadu Transport Development Finance Corporation, Institute of Road Transport and Pallavan Transport Consultancy Services immediately responded to the call of the Hon'ble Chief Minster and have contributed their one day salary of Rs.2,81,57,000/- (Rupees two crores eighty one lakhs and fifty seven thousand only) towards contribution to the "Tsunami" victims to the Chief Minister's Public Relief Fund on 31.12.2004 itself. Apart from this, the Tamilnadu Transport Development Finance Corporation and Tamil Nadu State Transport Corporation, Kumbakonam have contributed a sum of Rs.1.00 crore each and the Tamil Nadu State Transport Corporation, Salem has contributed Rs.50.00 lakhs as their share. The details of the contribution are as follows:-

This amount of Rs.5,31,57,000 was handed over to the Hon'ble Chief Minister on 4.1.2005, the 9th day after "Tsunami".

On hearing the news of the havoc created by the Tsunami on 26.12.04, the management of State Transport Corporations operating buses along the coastal areas flung into action and started operating buses for evacuating the public, affected by natural calamity from the affected areas to safer places as identified by the District Collectors and Superintendents of Police. Officers of the Transport Corporations visited the Camps and arranged buses according to the requirement, such as transporting people to and from the hospitals, transporting people from the coastal villages to the Camp, carrying of relief items free of cost besides permitting the affected to travel free of cost in the local buses.

Besides evacuation of Tsunami victims to safer places, the people arrived from Andaman had been transported to their native places free of cost from 29.12.04 to 9.1.05.