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The Challenged Private Sector
Written By murali772 - 2 November, 2008
Bangalore Infrastructure Congestion BMTC Corruption Bus BMLTA Privatization KSRTC Media Reports Economy
Private bus operators at Kalasipalyam, who have been transporting commuters for about 60 years now, still await the day they will get a separate bus stand. There are about 250 private buses that ply daily between the City Market and nearby Hosur, Kolar, Magadi, Tumkur and Chikballapur.
The Kalasipalyam bus stand is crying for attention. Harried commuters trying to make their way through the chaos created by the KSRTC, BMTC and private buses, operating from the same area, point at the need for a major overhaul. But it seems like the Bruhat Bangalore Mahanagara Palike (BBMP) is in no hurry to do anything.
“The Kalasipalyam bus stand space belongs to the BBMP. We expected that the remodelling of the Shantinagar bus depot into a full-fledged bus terminus would pave way for the rejuvenation of the bus stand and also a new one for private bus operators here. Unfortunately, a separate bus stand for us has not materialised so far,” said G V Chandrashekar, proprietor, Vinayaka Motors Service. The erstwhile Bangalore City Corporation used to collect a fee of Rs 5 per day from each bus operator for using the stand. However, for the last two years no fee is being collected.
“Under the Municipal Corporation Act, it is the duty of the corporation to provide basic civic amenities at bus stands, as it is a public place (according to the Motor Vehicles Act). They have a right to collect bus stand fee provided they maintain it,” observed Ashwath Narayan, manager in a transport company.
The Transport Department that issues state carriage permits to these private buses renews it every five years. That apart, in spite of the private bus operators paying quarterly road tax and other ‘hidden taxes’ to various departments, the operators are deprived of a decent bus terminal. “Despite having valid permits, we end up spending Rs 3,000 monthly as bribes to various departments like the police, the RTO and squads. Operators who don’t have valid permits, would be shelling out double the amount,” informed Shankar, a private bus operator.
If the bus operators are having a bad time, it is not any easier on the commuters. Unhygienic, unkempt surroundings, with no provision for basic amenities greet commuters here. “The situation gets worse when it rains. The stand looks like a dirt track and it’s impossible to board a bus. People even skid and fall. The authorities are least bothered about safety,” fumed Rekha, a commuter.
Authorityspeak: Speaking to The Express, BBMP Commissioner S Subramanya said that the collection of bus stand fee at Kalasipalyam was suspended as it was to be repaired under a Public-Private Partnership initiative. “The renovation plan was prepared and the project was tendered for the same. However, the previous government didn’t clear the project,” the commissioner added. When asked about the separate bus terminal for private operators, Subramanya said that alternative arrangements have to be made for the KSRTC and the BMTC. “The government should take the decision on this matter. Then only we can provide a designated bus stand for private buses,” he said.
For the full text, click on:
Muralidhar Rao
COMMENTS
dismal state across the country
murali772 - 2 November, 2012 - 10:05
The West Bengal scene
Private bus operators in West Bengal are demanding a nearly 60 per cent increase in fares to cope with the hike in fuel prices. The operators may also resort to a strike if fares are not revised. - - “We are eagerly waiting for a positive decision on fare hike by Chief Minister Mamata Banerjee before October 29. No fruitful decision may lead to an indefinite strike thereafter,” Deepak Sarkar, Vice-President of Bengal Bus Syndicate, said. - - - Tapan Banerjee, joint secretary of the Joint Council of Bus Syndicate, said the chief minister promised the operators of a fare hike at a meeting on October 8. He added it would be “a natural death” of the private bus transport system in the State without an immediate hike in fares. - - - “Diesel price has been increased by 45 per cent here since 2009. So, the fares should go up accordingly. We are not taking the higher operating cost into account,” Sarkar said. - - - -Both the operators’ associations control about 95 per cent of the 42,000-odd private buses plying across the State.
Banerjee said of the 685-odd buses under JNNURM scheme (operated on a public private partnership basis), more than 350 buses were already off the roads. This has been attributed to the widening gap between fares and higher operating costs of these buses. - - - West Bengal is the only State that operates JNNURM buses through PPP route. - - - “Minimum fare for the buses running under JNNURM scheme should be increased from Rs 5 to Rs 8 (for non-AC category) with immediate effect,” he said.
For the full report in The Hindu, click here
The Kerala scene
The district unit of Bus Operators’ Organisation has decided to join the indefinite bus strike called by State coordination committee of private bus owners from the midnight of October 29 to protest against the State government’s refusal to proportionately increase bus fare to match the increase in diesel price.K. Radhakrishnan, general secretary of the organisation, announced here on Saturday that bus services had ceased to be viable after the last increase in diesel price and the State government’s failure to increase bus fares to meet the sharp rise in expenses for operating buses.- - - -“We have been operating services at a loss in the last one month, hoping the government will raise bus fares. But it has not happened,” Radhakrishnan said.
For the full report in The Hindu, click here
Neither can the government do a proper job of running the bus services, as evident from here and here, nor will they allow the private operators to do a proper job, largely because of their indicisiveness, linked to Socialist posturings. Meanwhile, the citizens, as also the economy as a whole, suffer.
Public bus transport services is constantly gaining in importance as a very key infrastructure sector, whose efficient and cost-effective operation, is a major contributor to the liveability factor, in both urban and rural areas. And, it is also becoming increasingly clear that the burgeoning demand, both in terms of variety as well as as quantity, can't be met by government monopolies alone, any longer. Whereas this fact should generally have been a no-brainer, both the government as well as the public, have however been living in a denial mode all these years, the resulting dismal state affecting every other aspect of the economy too in its wake. Very clearly, such a situation is no longer affordable now, and therefore, perhaps time the Civil Society in each of the affected states came together to demand the setting up of properly empowered regulatory bodies to take quick decisions, as also to provide a level playing field to the private players, as compared to the position existing now, so that the whole sector evolves to a new high, quite like in the case of civil aviation, telecom, etc.
And, of course, Karnataka can provide the lead. So, that's another petition coming, then.
raghunandan85 - 4 December, 2012 - 11:07
I dont understand why the Govt. is fixing the fare for private players at all. Im not familiar with the system in force in Mangalore and Kochi, maybe someone can post a short synopsys.
As I understand, the additional Rs5 doesnt improve the service or commute time since its just to cover increased costs.
murali772 - 4 December, 2012 - 11:49
@ raghunandan85
I dont understand why the Govt. is fixing the fare for private players at all.
That's what the licence-permit raaj is all about - check this
Im not familiar with the system in force in Mangalore and Kochi, maybe someone can post a short synopsys.
For more on Kochi bus services, click here. And, for the challenge by the challenged Mangalore operators, click here.
As I understand, the additional Rs5 doesnt improve the service or commute time since its just to cover increased costs.
Yes, today, it is just for their survival. For good services, you need to have a variety of them, and you can't say that they shouldn't be making profits (reasonable) out of doing it - check here for more. Either way, the VRL's, Kallada's etc are making huge profits out of inter-state operations, while providing decent services, competing effectively against the mediocre Railways or the state RTC operations.
raghunandan85 - 7 December, 2012 - 03:47
1) Allow private to run Volvo buses on few high density routes, say on the ORR=Hebbal-KRPuram-SilkBoard or ElectronicsCity-SilkBoard.
2) Govt. should not mandate the fare. Maybe a maximum fare, if it feels the need to have a cap (say at 2x BMTC). Allow private operators to revise fare every 3 months. These fares must be published.
3) Private operators are allowed to differentiate their service. For example, by offering sitting only Volvos, late night services .etc.
4) Private buses marked clearly to differentiate them from BMTC.
5) Charge a minimal license fee to cover administration costs. Allow them to use the Hebbal bus depot at extra cost.
6) No upper limit on number of operators allowed, to prevent cartels. There is no need to limit competition.
The additional Volvos will definitely be a welcome addition on ORR. If a private operator can run efficiently and charge less than BMTC, that would be awesome. Differentiated services can attract some car/bike commuters who might like the extra comfort.
Im not sure if normal buses are lucrative for private operators. Also, they might not be willing to run buses to non-profitable outskirts of Bangalore. Im pretty sure BMTC cross-subsidises these routes with profits from others. Allowing private operators throughout the city means that they can run buses on only the profitable routes and deprive BMTC of the profits needed to maintain connectivity to suburbs.
Mangalore Public transport perilous
Naveen - 16 December, 2012 - 11:15
This coastal city is dreaded by the motorists from all parts of the country. But the best drivers of the country will also be put to a real hardship if they were to drive in Mangalore. The public transport system here is perhaps the most dangerously run system and now faces the danger of being a cartel in itself.
The police department doles out the statistics that the death rates in the Mangalore City Police Commissionerate limits (just 17 police stations) was going up. In 2008 the number of deaths was 129. In 2009, it was 130 and in 2010 it was 167. About 50% of these deaths on a year to year basis was due to the public transport (city and mofussil buses).
The figures of Dakshina Kannada district are more startling. According to the District Crime Investigation Bureau statistics, in 2008, there were 574 cases of accidents out of which 84 people died, in 2009 the total accidents were 598 out of which 107 were fatal. In 2010 there were 595 cases out of which 90 persons were killed and 35% of the fatalities were due to public transport buses.
In 2012, till September 26 persons have lost their lives due to public transport in Mangalore city alone.
The private bus operators dominate the public transport system in Mangalore city in particular, and Dakshina Kannada and Udupi district in general. There are about 600 private buses servicing the system.
The lobby is so powerful that it has minimised the mighty KSRTC in these two districts. They have also managed to bring a court order against KSRTC plying in the city and many of the interior roads monopolising the public transport.
Though the KSRTC Mangalore division was putting up a brave fight for its share, the transport ministry has laid down arms in front of the private operators. The KSRTC has just six buses running between Mangalore and Manipal, and in the city sector it has another six buses.
But the competition has been intense between the operators. Taking advantage of the amendment of the Public Transport Act of 1972 in 1989, every person who desired to plunge into the public transport business gets a permit. As a result, there are more single bus owners than the fleet owners, which is a dangerous development for a public transport system as the single bus operators are nothing short of bounty hunters and engage in a mad rush at top speeds for picking up every passenger.
The permit holder and bus owner lease the vehicle to a bunch of drivers and conductors on the conditions of paying him back every day which includes his bank payment, wear and tear and his individual profit.
“All single bus operators do this which has unleashed a mad rush on the roads of Mangalore and Udupi due to which public safety is in serious jeopardy. We have brought this unhealthy practice to the notice of the several transport ministers and the transport commissioners in the past but there was no action,” said Hanumanth Kamath, president of the Nagarika Hitarakshana Vedike of Mangalore.
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