Corruption blamed for MSRTC losses

Assembly panel submits report, blasts government

Growing illegal passenger transportation, state's policies skewed in favour of private transporters, overpriced and sub-standard purchases and over staffing are the some of the reasons sighted by the state legislature's committee on public undertaking for huge losses incurred by the Maharashtra State Road Transport Corporation (MSRTC).

The committee's chairman Nana Patole tabled the report in the Assembly on Tuesday. The report says that the state transport's corporation's accumulated loss at the end of financial year 2002-03 stands at Rs 676.73 crore which is 1.6 times more than it's paid up capital.

The committee has observed that reasons like increase in illegal passenger transportation, rising prices of diesel, wage agreement which is not linked with the productivity, mandatory trips on unprofitable routes, loss in urban transport and heavy passenger taxes are the main reasons for MSRTC running into losses.

The committee has stated that, "according to MSRTC officials nearly 92,000 vehicles like jeep, sumo, tempo-trax are engaged in illegal passenger transport in state's rural and semi urban areas and this is causing MSRTC losses to the tune of Rs 600 crore.

The committee has observed that MSRTC is making all out efforts to reduce the cost and it's operational efficiency and as a result, MSRTC has posted the profit of Rs 15 crore in first quarter of the financial year 2005-06.

They have pointed out that by adopting simple measure like filling the diesel outside the municipal limits MSRTC is able to make saving of around Rs 36 lakhs every day.

The committee has recommended that the government should extend greater support to the MSRTC by making changes in policies and laws of the state.

The committee has pointed out that MSRTC has to pay the passenger tax of 17.5 per cent and in many place, state transport corporations either don't have to pay the passenger tax or the rate is very low.

Besides this state policy on passenger tax is also skewed in favor of the private transporters. While on ordinary bus, MSRTC pays the tax of Rs 2.51 lakhs per year, private tour operator only pays Rs 1.40 lakhs. And this difference is even higher in case of deluxe buses and air-condition buses.

While MSRTC pays passanger tax of Rs 8.66 lakh and Rs 16.89 lakhs respectively for deluxe and air condition buses, private tour operator only pays the tax of Rs 1.40 lakh and Rs 2.25 lakhs.

The committee has recommended that, state government should waive off the dues recoverable from MSRTC as passenger tax and convert that amount into it's equity in MSRTC.