BMTC riding along the path of profit

BMTC riding along the path of profit

The Hindu

It remains the only profit-making urban transport undertaking in the country

# It posted profit of Rs. 114.88 crore during 2005-06
# It has bettered its performance by Rs. 34 crore from last financial year



BANGALORE: A combination of better management skills, induction of modern buses and regular fare revision has helped the Bangalore Metropolitan Transport Corporation (BMTC) to continue its robust performance for the eighth consecutive year.

It has posted a profit of Rs. 114.88 crore during 2005-06, bettering its performance by Rs. 34 crore from the last financial year. BMTC thus continued to remain "the only profit-making urban transport undertaking" in the country.

Loss

Its counterparts — BEST in Mumbai, DTC in Delhi, Calcutta STC in Kolkata and MTC in Chennai — suffered losses of Rs. 237 crore, Rs. 802 crore, Rs. 105 crore and Rs. 85 crore respectively during the period.

The corporation, which had incurred a loss of Rs. 7.82 crore in 1997-98 after its bifurcation from the Karnataka State Road Transport Corporation (KSRTC), never looked back in subsequent years. It earned a profit of Rs. 3.96 crore in 1998-99; the figure rose to Rs. 80.01 crore in 2004-05.

Although commuters appreciated improvement in overall performance of BMTC, they were critical of the frequent upward fare revision. Commuters pay Re. 1 a km, which is equal to the fare collected by KSRTC for travel in air-conditioned inter-city Volvo buses.

While regular fare revision following hike in fuel prices has helped BMTC to perform well, its counterparts were discouraged to revise fares. Indeed, BMTC fares are the highest among those of urban transport undertakings in the country.

Fare revision

Apart from fare revision, continuous improvement in operational efficiency took the corporation to new heights while others lacked it, say industry experts. According to BMTC officials, better management skills including extensive use of Information Technology has helped the corporation to derive maximum output from its personnel. Regular induction of new buses and choosing the best of the drivers had enabled BMTC to derive maximum fuel efficiency, they said.

Higher fares compelled commuters to extensively use monthly and daily passes, which in turn reduced pilferage to a large extent by conductors.

Over three lakh monthly passes and an equal number of daily passes (Rs. 25) are being purchased by commuters.

Opening of new bus depots has also helped the corporation to cut costs and improve efficiency. At present, 25 depots enable operation of more than 4,000 schedules with 4,100 buses. BMTC operates 60,000 trips and clocks nine lakh effective kilometres ferrying 35 lakh commuters a day.

The depots not only act as maintenance centres, but also help operation of buses from the nearest points. BMTC riding along the path of profit

Anil Kumar Sastry

It remains the only profit-making urban transport undertaking in the country

# It posted profit of Rs. 114.88 crore during 2005-06
# It has bettered its performance by Rs. 34 crore from last financial year



BANGALORE: A combination of better management skills, induction of modern buses and regular fare revision has helped the Bangalore Metropolitan Transport Corporation (BMTC) to continue its robust performance for the eighth consecutive year.

It has posted a profit of Rs. 114.88 crore during 2005-06, bettering its performance by Rs. 34 crore from the last financial year. BMTC thus continued to remain "the only profit-making urban transport undertaking" in the country.

Loss

Its counterparts — BEST in Mumbai, DTC in Delhi, Calcutta STC in Kolkata and MTC in Chennai — suffered losses of Rs. 237 crore, Rs. 802 crore, Rs. 105 crore and Rs. 85 crore respectively during the period.

The corporation, which had incurred a loss of Rs. 7.82 crore in 1997-98 after its bifurcation from the Karnataka State Road Transport Corporation (KSRTC), never looked back in subsequent years. It earned a profit of Rs. 3.96 crore in 1998-99; the figure rose to Rs. 80.01 crore in 2004-05.

Although commuters appreciated improvement in overall performance of BMTC, they were critical of the frequent upward fare revision. Commuters pay Re. 1 a km, which is equal to the fare collected by KSRTC for travel in air-conditioned inter-city Volvo buses.

While regular fare revision following hike in fuel prices has helped BMTC to perform well, its counterparts were discouraged to revise fares. Indeed, BMTC fares are the highest among those of urban transport undertakings in the country.

Fare revision

Apart from fare revision, continuous improvement in operational efficiency took the corporation to new heights while others lacked it, say industry experts. According to BMTC officials, better management skills including extensive use of Information Technology has helped the corporation to derive maximum output from its personnel. Regular induction of new buses and choosing the best of the drivers had enabled BMTC to derive maximum fuel efficiency, they said.

Higher fares compelled commuters to extensively use monthly and daily passes, which in turn reduced pilferage to a large extent by conductors.

Over three lakh monthly passes and an equal number of daily passes (Rs. 25) are being purchased by commuters.

Opening of new bus depots has also helped the corporation to cut costs and improve efficiency. At present, 25 depots enable operation of more than 4,000 schedules with 4,100 buses. BMTC operates 60,000 trips and clocks nine lakh effective kilometres ferrying 35 lakh commuters a day.

The depots not only act as maintenance centres, but also help operation of buses from the nearest points.