1. THE WHITE ELEPHANT: KSRTC
-Sneha Baby
Intern
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2. INTRODUCTION
 KSRTC is the Kerala's main source of public
transport.
 KSRTC has the monopoly over the nationalised
routes.
 The state govt has reserved 31 routes exclusively
for the KSRTC but still its running on losses.
 At present KSRTC is hit with a huge financial crisis.
 The question arises for how long govt can aid
KSRTC?
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3. HISTORY
 Began as the Travancore State Transport
Department.
 Started on 20th September 1937 with 33 buses
 KSRTC established on 15th March 1965
 Converted into an autonomous corporation on 1st
April 1965.
 Possessed a fleet of 901 buses 51 lorries and 29
other vehicles and 661 schedules.
 Headquarters situated in Thiruvanathapuram.
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4. TODAY
 Corporation has 5567 schedules and 6132
buses in March 2013.
 The average earnings per km (EPKM) works out to
round about 28.52
 Average earnings per bus (EPB) works out
to 9370
 Average number of passengers transported a day
is 3.145 million.
 No: of employees is 30738 (as on mar ‘13)
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5. Transport market share
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6. LOOKS INTO…
 Problems and its contributing factors
 Solution and the revival of KSRTC
 Fund flow from govt to KSRTC
 Future of KSRTC
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7. Problems faced by the KSRTC :
 Lack of management and red tapesam in the organisation
 operational inefficiency
 ageing fleet: Out of the 5803 buses of KSRTC 1672 buses are aged
above ten years.
 miss-behaviour of employees and the rash driving of KSRTC drivers
 competition from private players
 hike in diesel prices
 unpaid loans
 unpaid pensions
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8.  high bus-staff ratio ( 5.012)
 running of buses in non profitable routes
 flaws in concrete decision making and implementation
 no back up for the buses in workshops or not functioning which leads
to the cancellation of bus schedule
 bureaucratic and political control over the KSRTC
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9. SOLUTIONS
 Increase operational efficiency
 Decentralisation of the organisation
 R& D to bring new developments in KSRTC
 Provide training and incentives to the employees
 Govt support to pay off the debts
 Technological up gradation
 Increase non conventional source of revenue
 Conversion of KSRTC into CNG
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10.  Based on provisional figures, it suffered loss of Rs. 148.28 crore in
2008-09.
 The accumulated losses and borrowings of the Corporation stood at
Rs. 2,085.98 crore and Rs. 831.75 crore as on 31 st march 2009.
 The overall fleet utilisation of the Corporation marginally increased
from 79.31 per cent in 2004-05 to 79.60 per cent in 2008-09, which
was less than all India average (AIA) of 92per cent.
 The overall vehicle productivity of KSRTC buses at 259 kilometres per
day per bus in 2008-09 was less than the AIA of 313 kilometres.
 The passenger load factor stood at 66 per cent during 2008-09, which
was higher than AIA of 63 per cent.
 Manpower and fuel constitute 74.68 per cent of total cost. Interest,
depreciation and taxes account for 16.18 per cent as on 31st march
2009
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11. Fleet Utilisation
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
2004-05 2005-06 2006-07 2007-08 2008-09
Fleet Utilisation (%)
All India Average (%)
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12.  Manpower cost of the Corporation was Rs.10.02 per effective KM
which was higher than the AIA mainly due to implementation of
pension scheme to the employees without creating separate fund.
 The Corporation did not attain AIA in respect of fuel efficiency.
Consumption of fuel in excess of AIA resulted in excess consumption of
10.58 crore litres of fuel valued at Rs. 339.55 crore during 2004-09.
 the percentage of cancellation of scheduled kilometres increased from
9.49 per cent to 22.56 per cent in 2007-08 and decreased thereafter to
14.42 percent.
 Over age buses and shortage of staff were the major reasons for
higher percentage of cancellation besides planning of schedules
without addition of sufficient buses.
 Due to cancellation of scheduled kilometres for want of buses and
crew, the Corporation was deprived of contribution of Rs. 238.75 crore
during 2004-05 to 2008-09.
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13. Cancellation of Scheduled Kilo meters (Source : CAG report 2009)
Sl. No Particulars 2004-05 2005-06 2006-07 2007-08 2008-09
1 Scheduled Kms ( in lakhs) 4751.00 5289.53 5358.48 5401.01 5530.03
2 Effective Kms 4299.89 4402.17 4223.06 4182.63 4732.55
3 Kms Cancelled 451.11 887.36 1135.42 1218.38 797.48
4 % of Cancellation 9.49% 16.78% 21.19% 22.56% 14.42%
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14. Cause Wise Analysis
Sl.No Particulars 2004-05 2005-06 2006-07 2007-08 2008-09
1 Want of Buses 204.40 477.13 671.03 554.12 270.03
2 Want of Crew 28.00 93.97 148.29 205.30 55.50
3 Others 218.71 316.26 316.10 458.96 471.95
4 Contribution per km
( in Rs)
8.02 7.78 8.94 9.00 10.47
5 Avoidable
Cancellation
232.40 571.10 819.32 759.42 325.53
6 Loss of Contribution
( Rs in Crore)
18.64 44.43 73.25 68.35 34.08
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15.  the scheduled kilometres were not fully operated mainly due to non-
availability of adequate number of buses,
 shortage of crew
 other factors like breakdown, accidents, late arrivals, strikes, planned
cancellation on holidays, etc.
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16.  The Corporation has about 15.76 lakh square metres of land
As on January 2007the market value of the land was at Rs. 800 crore.
 The Association of State Road Transport Undertakings (ASRTU) had
prescribed (September 1997) the desirable age of a bus as eight years
or five lakh kilometers.
 the Corporation adopted the norm of reckoning the life of a bus as 10
years or 10 lakh kilometres of operation whichever was earlier in tune
with improved technical parameters of new buses.
 the KTDFC has granted `1741.57 Crores to Kerala State RoadTransport Corporation
as on 31 st mar 2009.
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17.  Disbursing Loan to KSRTC is on the strength of Government
Orders
 About 90% of total loan is disbursed to KSRTC
 KSRTC is making payment on equated daily instalment basis.
 Interest Rate being charged on KSRTC Loan is 0.50% over and
above the cost of funds of KTDFC.
 Repayment of KSRTC Loan is routed through escrow mechanism
by means of tripartite agreement executed with SBT/ ICICI/
Indus Ind.
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18. Age –wise details of Vehicles Owned BY KSRTC
2011 -2012 (SOURCE : ECONOMIC REVIEW 2102)
Sl no buses 2011 march 2012 march
1 10 years and above 1641 1672
2 Above 7 years and below 10 years 633 896
3 Above 5 years and below 7 years 687 336
4 Below 5 year 2780 2899
total 5741 5803
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19. Sl. no Particulars 2004-05 2005-06 2006-07 2007-08 2008-09
1 Total buses (at the end of
the year)
4,644 4,688 4559 4893 5115
2 Over-age buses (more
than10 years old)
739 982 1129 1452 1343
3 Percentage of over-age
buses
15.91 20.95 24.76 29.68 26.26
4 R&M Expenses (Rs. In
crore)
97.59 101.65 108.75 118.03 118.09
5 R&M Expenses per
bus(Rs. in lakh) (4/1)
2.10 2.17 2.39 2.41 2.31
6 Percentage of Manpower
cost on R&M Expenses
38.34 34.65 39.99 41.97 41.95
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20. Elements of Cost
Material Cost
41%
Personnel Cost
39%
Taxes
5%
Interest
7%
Depreciation
4%
Miscellaneous
4%
PERCENTAGE
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21. Components of Various Elements of Revenue
Traffic Revenue
98%
Non Traffic Revenue
2%
ChartTitle
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22.  As part of mobilizing non operating revenue, it is decided
to construct shopping complex-cum-Bus Station in major
towns of Kerala.
 The shopping complex at Kottarakkara and angamaly has
already been inaugurated
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23. Major Indicators of Operational Efficiency of KSRTC (
SOURCE : ECONOMIC REVIEW 2012)
Sl.n
o
Items 2010-2011 2011-2012 Increase
/decrease
last year
1 Fleet strength as on 31st mar 5741 5803 62
2 Gross Revenue Earnings ( Rs in Crores 1294.1 1555.27 261.62
3 Gross Revenue Expenditure 1673.42 1902.95 229.53
4 Gross Operating Loss (-)379.32 (-) 347.23 - 32.09
5 No: of Schedules operated as on 31st mar 4611 4795 184
6 Average earning per vehicle on road per
day
7664 8423 759
7 Average earning per Km of Buses
operated
2364 2613 249
8 Average earning per passenger 1036 1142 106
9 Average route length ( Kms) 50.38 50.68 0.29
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24. Sl.no Items 2010-2011 2011-2012 Increase/
decrease
10 Average Kms run per bus per day 324.19 317.2 -6.99
11 Average no: of buses held daily 5573 5742 169
12 Passenger carried ( Lakhs) 12363 12579 216
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25. Operational Statistics District Wise ( Source: Economic Review 2102)
0
20000
40000
60000
80000
100000
120000
140000
160000
155503
65232
40893
60303 60203 62228
46478
60845
38638 37289 34554
24115
8986
26054
Earning per Vehicle on Road per day ( in Rs) in 2011-12
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26. 0
10000
20000
30000
40000
50000
60000
55267
21294
12881
19072
17912
19812
12874
17192
9654 9569 9964
7424
2701
7542
Earings per km of buses operated ( Ps)
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27. Schedule Wise Revenue Details ( source :CAG REPORT 2009)
Particulars Total No. of
Schedules
No. of Schedules
Making Profit
No. of Schedules
not meeting
total cost
No. of
Schedules not
meeting
Variable Cost
2005-06 6511 367
(5.64)
6,144
(94.36)
135
(2.07)
2006-07 5007 169
( 3.38)
4,838
(96.62)
152
(3.04)
2007-08 5489 486
( 8.85)
5,003
(91.15)
125
(2.28)
2008-09 7300 1,148
(15.73)
6,152
(84.27)
121
(1.66)
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28. Buses Owned by KSRTC (source : economic review 2012)
Year Total no : of Buses No: of New Buses
2008 Mar 4893 517
2009 Mar 5115 697
2010 Mar 5402 629
2011 Mar 5741 703
2012 Mar 5803 209
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29. Sl. No Particulars 2004-05 2005-06 2006-07 2007-08 2008-09
1 Effective KMs operated (
in lakh)
4299.89 4,402.17 4,223.06 4,182.63 4,732.55
2 Earnings per KMs 17.77 18.89 20.75 21.13 22.44
3 Fixed Cost per KM 11.84 12.47 12.67 13.96 13.96
4 Variable Cost per KM 9.44 10.78 11.44 11.77 11.61
5 Cost per KM 21.28 23.25 24.11 25.73 25.57
6 Net Earnings per KM -3.51 -4.36 -3.36 -4.60 -3.13
7 Traffic Revenue 750.55 817.21 860.58 868.67 1,045.09
8 Traffic Revenue per KM 17.46 18.56 20.38 20.77 22.0829 Centre for Public Policy Research