BMTC posts Rs. 140 cr profit

BMTC posts Rs. 140 cr profit

Anil Kumar Sastry

Rs. 200 crore spent on acquiring buses and constructing depots


BANGALORE: Despite a steep increase in the cost of inputs and a marginal reduction in the average load factor, Bangalore Metropolitan Transport Corporation (BMTC) was able to post a profit of Rs. 140 crore in 2007-08, down from Rs. 224 crore in 2006-07.

BMTC did not take into account Rs. 89 crore due from the State Government as its share towards student concession passes.

BMTC revised the fares in June 2006 when the diesel price went up from Rs. 33.5 to Rs. 37.5 a litre. At that point, it claimed that unless the fares were revised, it would suffer a loss of nearly Rs. 75 crore a year. After the fare revision, the corporation’s profit reached Rs. 224.32 crore (2006-07) from Rs. 114.88 crore (2005-06).

The revenue earned in 2007-08 reached Rs. 940 crore from Rs. 887 crore in 2006-07. During the year, the BMTC added more than 1,000 new buses taking the fleet strength to 5,000. It bought 40 Volvo buses for exclusive airport operations while adding a few more Volvo buses for the city operations. It spent nearly Rs. 200 crore towards capital expenditure during the year.

A senior BMTC official said that apart from fluctuation in diesel price, the cost of other inputs such as tyres and tubes, steel, aluminium, paints and spare parts pinched the corporation’s pocket. Revision of salaries of trainee drivers and conductors, increase in dearness allowance and massive recruitment of the crew dented its coffers.

With the increased fleet strength, BMTC could enhance the number of daily trips from 60,000 to 67,000. This has brought down the average load factor from 66 per cent to 63 per cent and had an impact on traffic revenue. Despite this, the BMTC was striving to achieve the international average load factor standard of 50 per cent, so as to offer comfortable journey to commuters. The corporation had to deploy nearly 10,000 buses to achieve 50 per cent load factor. This meant, during peak hours, buses would not be overcrowded and during off-peak hours, passengers could enjoy sitting travel.

Although BMTC’s profit margin has come down, it continues to be the only profit-making urban state transport undertaking.

While Chennai Metropolitan Transport Corporation could reduce its loss from Rs. 63 crore (2006-07) to Rs. 45 crore, no other urban transport corporation could make profit during 2007-08. During 2006-07, BEST, Mumbai, lost Rs. 364 crore, DTC, Delhi Rs. 767 crore, Calcutta STC, Kolkata, Rs. 39 crore and AMTC, Ahmedabad lost Rs. 66 crore.

The BMTC official said making profit was not the motive of the corporation.

However, as governments did not support public transport in the country and in the State by way of tax waivers and subsidies, the corporation had to arrange finances on its own lest the entire public transport setup in the city collapse.

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