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BMTC fare hike - mismanagement of funds?
Written By ss87 - 27 June, 2011
Bangalore BMTC Bus Analysis fares Transportation public transport
While there have been good inputs of routes and various features like Bus Day and other things going fine there was a huge blow-rise in diesel rates by Rs.3 a litre. Immediately there was a bus fare increase announced by the transport corporations-was this hike seriously necessary??
The diesel fares rose by Rs.3. An average BMTC bus gives about 4kmpl(Written on the right side over the diesel tank)-and some new ones go up to 5kmpl. that means an avreage increase of about 75paise per litre. and the number of passengers travelling by bus is about an avreage of 40-45-meaning there is absoultely just about 1 to 1p increase per passenger-but the effect-there has been increase of Re.1 per kilometer on average which means its an absolute complete revenue per pasenger to that increase of fare.
Now where did BMTC use the revenue-apart from regular administrative expenses the following others take place
- Replacement/procurement of buses-this wasnt done last year according to latst news-previous to that procurement was from JNNURM funds
- Construction of bus stands/TTMC's-mainly again through JNNURM funds as clearly displayed
- Issue of school concessional passes-subsidised by Government-BMTC's website generally doest take into consideration calculating its revenue and same is mentioned there
- Day passes and other passes- It was a good initiative by BMTC followed in other states too- but the catch here is at present even if it meant changing 2 buses minimum ther eought to use a day pass for the fares are so high-on the other hand if fares were lesser why would people opt for day pass-once people opting for day passes reduce, resale of the same would reduce-the same would lead to more revenue.
- volvo buses- suppossed to be incurring losses in the start they have started to make profit-and like ordinary buses tech parks like Manyata and associations like ORRCA have started hiring them too which means there is a assured revenue there-So this is not an issue anymore
Its a sheer thing that BMTC has failed to analyse the following aspects:
- The starting stages jump by Rs.2-for travelling 3 kms if a person has to shell out Rs.8 2 wheeler becomes cheaper option-more agile people prefer to walk the distance rather than paying the same-and people in groups take an auto-so these are revenue losses for BMTC-if the fare hike in the starting stages is reduced BMTC can definitely increase its revenue by leaps and bound as many people travel shorter distances rather than longer
- The scheduling the depot trips arent proper-a bus generally runs empty to the depot from nearest bus stand-meaning diesel is consumed but there is no revenue in that thing-generally noticable in afternoons
- The other aspect(Regarding volvo especially) - there are only 4 depots capable of handling volvo-why should these buse stravel all the way to sepot instead of resting at the bus stands itselfs in the afternoon-you find many buses with board of Silk board or Kamakhya plying one after the other without passengers-rather they can remain at ITPL/Banashankari or embark short trips to majestic - The other thing is improper allocation of depots-258C(Nelamangla to Majestic) and 335E(ITPL to majestic) have sheds at Kathriguppe instead of majestic-in the end they ply one behin dthe other towards depot from majestic and in majority cases empty. why cant they be housed at majestic which too is a volvo depot instead of wasting diesel all the way??
Apart from all these things Government grants doesnt seem to suffice-the taxes and all other levies are higher in Karnataka compared to other states-despite this revenue looks like Govt is greedy for more-if it can subsidise the exenses of BMTC with this revenue consumers will not be burning holes in the pocket-where did this revenue go??
Also when a vast netwrok like Railways have managed funds well and havent even thought of rising the fares why is BMTC unable to do so despite such high fares bein charged already-where is all the revenue earned these days go??
COMMENTS

Fare Hike Justification analysis
psaram42 - 28 June, 2011 - 04:13
The fare hike analysis with 1 paisa per passenger assuming 100% occupancy at all times could be misleading. However the income expenditure of the transport and other government departments need to be absolutely transparent with paperless work culture.

difficult to arrive at a proper fare hike
blrpraj - 28 June, 2011 - 06:25
With inflation skyrocketing, a drastic increase in operating costs is inevitable. And definitely, calculating a correctly justifiable price hike is very difficult. What i don't understand though is why the increase in operating costs was not covered by increasing private 4 wheeler vehicle taxes, private vehicle congestion taxes, petrol taxes etc.

Why BMTC not using CNG like Delhi, 100/125 cc bikes economical
Vasanth - 28 June, 2011 - 08:06
Transportation corporations of Delhi, Mumbai and other major corporations across the country are using CNG instead of Diesel. This reduces pollution and Government can prevent hike of CNG to favour Government operated buses.
ss87 is bang on point. If we consider Fuel efficient 4 stroke 100cc bikes, they give 70+ kpl in good condition and around 65 kpl in Bangalore conditions. This comes to around 1Rupee to 1 Re 20 paise per km. This seems to be more economical, reliable and door to door service, so people who can afford will switch over to fuel efficient Bikes. Many will be already having and using it near home, for far off places, they would use BMTC. But, this trend will decrease.
Today, from my home at BSK 3rd Stage to Devegowda bunk, in ordinary bus I had to give 7 rupees to catch my office shuttle. It is just 2 kms. Same travel in a bike would cost me less than 3 rupees and it would be door to door. Where will Bangalore traffic reduce and how will Bus days succeed?

idontspam - 28 June, 2011 - 10:30
reliable and door to door service,
So hard to get away from this door to door addiction. Without disincentives even nicitone addiction will be easier to get over :)

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