Indian Space Research Organisation

ISRO

Karnataka

state transport

bus services

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MSRTC says KSRTC has violated bilateral agreementIt isn’t just the) which manages to achieve technological breakthrough at ultra-low cost levels. Other Bengaluru-based organisations have a knack for it too.State Road Transport Corporation (KSRTC), which has often been rated the bestundertaking in the country, has now been accused of undercutting its Maharashtra counterpart’s profits by keeping its fares low for the Mumbai-Bengaluru sector.In a letter dated August 13, the Maharashtra State Road Transport Corporation (MSRTC) has written to its Karnataka counterpart to increase the fare of the latter’s inter-staterunning on Mumbai–Bengaluru route.In the letter, Ranjit Singh Deol, vice chairman and managing director of MSRTC, told the Karnataka State Road Transport Corporation (KSRTC) that there is a significant difference in the fares of the AC services offered by the two transport bodies – and that was in violation of the agreement reached between them.“As per the agreement between the two corporations, the fare and freight charged by the operators in the reciprocating states shall not be less than those charged by the operator of the states for similar services,” letter said. The letter also stated that the KSRTC was charging Rs 1,260 per passenger (for its Volvo service) against MSRTC’s fare of Rs 1,874 for the same route (for a non-premium service).Deol told Mirror that the state transport body asked the KRCTC to revise its fare as per MSRTC’s fare structure.KSRTC has managed to consistently outperform its peers in the country due to a clutch of best practices -- fleet modernisation (which leads to fewer breakdowns), use of bio-diesel in hundreds of its buses and cost minimisation through technology implementation are just some of them. But the biggest payoff has been the recruitment of driver-cum-conductors for the past 15 years. While most state transport undertakings hire two drivers and a conductor for long-haul routes, KSRTC manages with a driver and a driver-cum-conductor.“Earlier, we used to have two drivers and a conductor. Hence, there would be an increase in their overtime. With a person who can issue tickets and also drive the vehicle, it has become easier,” a KSRTC official said asking not to be identified.Another aspect that the KSRTC keeps a keen eye on is the competition from private players, who have fewer overheads and can thus offer cheaper services. “If our fares are 30 to 40 per cent higher than the private players, why would passengers patronise us? For example, the private players charge Rs 1,200 for travel to Mumbai from Bengaluru but we charge Rs 1,300. People do not mind paying Rs 100 extra for a dependable service like ours. We provide efficient operations and quality service so that these passengers motivate their friends and families to choose KSRTC,” the official added.According to sources, MSRTC, apart from writing to the KSRTC, has also approached transport corporations in six other states urging them to keep the rates as per the agreement. “MSRTC’s fare is higher than that of other state transport bodies operating bus services to Maharashtra,” said an officer who didn’t want to be quoted.Commenting on the matter, transport expert Ashok Datar said that it is time to review the fare structure as well as the economic model of MSRTC. If other state bodies could provide comparatively cheap and more comfortable bus services, what stops Maharashtra from doing it, Datar asked.According to sources, MSRTC, which operates a fleet of around 18,500 buses and caters to 67 lakh passengers every day, has said that the corporation has suffered a Rs 900-crore loss in the financial year 2018-19, pushing its accumulated losses beyond Rs 4,000 crore.KSRTC, on the other hand, runs over 8,700 buses (the number swells to around 24,500 if its other subsidiaries such as NEKRTC, NWKRTC and BMTC are taken into account) and services around 75 lakh passengers every day. After posting a loss of Rs 138.5 crore in 2017, it turned a corner and declared a profit in 2018.KSRTC currently operates three services to Mumbai, three to Pune and one each to Shirdi and Kolhapur every day. Its services to Maharashtra are profitable as, according to the KSRTC official, Maharashtra State Road Transport Corporation (MSRTC) has few premium services. “MSRTC operates only one or two services to Bengaluru and at times reduces or cancels the services if the turnout of passengers is poor,” the official added.