KSRTC to expand fleet

The Karnataka State Road Transport Corporation (KSRTC) is doing its bit to address the infrastructure concerns by deciding to expand its fleet in 17 of the 27 districts in Karnataka.

This expansion will take place mostly in South Karnataka where the KSRTC has a fleet of nearly 4,500 buses.

Within the next 12 months, the KSRTC will expand its fleet by about 20 per cent. Plans are also underway to replace nearly 12-15 per cent of the fleet. This will mean that nearly 1,800 new buses will join the existing fleet, of which 800 buses will be replacements.

Speaking to the Business Standard M R Srinivas Murthy, managing director, KSRTC, said, "The demand for public transport has picked up in urban and rural areas. While the rural people are seeing a greater need to commute, the fleet expansion in urban areas will decongest the cities. The fleet augmentation is substantial in nature and also very crucial to the KSRTC."

Murthy expects to incur an expenditure of Rs 150-200 crore for the expansion.

"Funds are not a constraint. We will be able to mobilise these funds through financial institutions as well as internal accruals. KSTRC's cash position is healthy. We registered a turnover of Rs 800 crore for the full year ended March 31, 2004, and have registered operating profits," Murthy added.

Having taken over as the managing director barely seven weeks ago, Murthy expressed happiness on the turnaround story of KSRTC.

"After being in the red for several years, we are now making profits and have struck a good balance in our P&L account. This turnaround has taken place only due to increased efficiency. Having consolidated our position, we feel that the time has come for augmentation," Murthy said.

Murthy said that the KSRTC has undergone a change of mindset in terms of providing service to the public.

"We will give what the market is ready to take. We are already running air-conditioned buses on local routes. We are looking at even importing buses wherever it is necessary. Today, a customer looks for more comfort and is ready to pay for it."

In elaborating on the mindset change, Murthy said, "We are gearing up to being perceived as a private service provider by not opting for a typical public sector approach. The corporation has already reached a stage where it provides varied buses on a single route. This has provided travellers with varied options and is helping him change his perception of the corporation."