COMMENTS

For the second straight year, corporation has incurred a loss. The authority says it will have no money to pay staff if fare is not increased right now

For over a decade, the BMTC enjoyed the reputation of being the only state-run road transport corporation in the black. That run came to an end in the financial year 2012-13 when the corporation declared a loss. The poor run has only worsened this year.

Because of persistent losses, the corporation is finding it difficult to induct new buses into its fleet. Under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM) scheme the corporation will induct 500 new buses next year, but the corporation has to pay 50 per cent of cost.

For the full text of the report in the Bangalore Mirror, click here

Now, even as the BMTC "is finding it difficult to induct new buses into its fleet", going by the following excerpts from a report in the Deccan Herald (for the full text, click here), it seems to be more intent on serving the needs of the "khaas aadmi":

The corporation earned Rs 60 crore last year by hiring out buses.

The chartered services offered by the Bangalore Metropolitan Transport Corporation (BMTC) have been raking in the moolah for the state-run transport agency.

The revenue derived from renting out buses to corporates and government departments for ferrying employees has filled the coffers of the BMTC, thus making it one of the country’s profit-making state transport undertakings (STU). The BMTC was in the red a few years ago. At present, around 500 buses of the corporation have been drafted for the chartered/dedicated services

- - - The introduction of chartered services had drawn severe criticism from the general public in the initial days. It was apprehended that the BMTC would compromise on public service while catering to the companies.  

The BMTC has a fleet of 6,700 buses and on an average more than 50 lakh commuters travel by its buses every day.

Now, I don't think even BMTC is claiming to be anywhere close to meeting the present day demands, leave alone the talk of capacity to meet the huge projections for the future. Besides, there's also no denying the fact that the addition of a single high-end bus to the fleet, has to be at the cost of addition of a minimum of 5 ordinary buses. As such, operation of the high-end services, in pursuit of the profit motive, is essentially depriving the "aam commuters" of their basic needs. The criticism of the pursuit is therefore is as much valid today as it was at the time of introduction of these services.

The public has generally been led to believe that private players were being kept out of the sector, since they would be interested only in the high-end services, where the money is, and will not serve the interests of the ordinary people. But, that charge can now be said to be as much valid for BMTC too. So, pray, why should the monopoly continue?

Further, while there is absolutely no case for denying the rightful fare increases corresponding to input cost increases, the quantum of increase can't be left to the collective bargaining process as it is seen to be the case now. Also, alongwith taking the cost increases into account, there have to be measures for operational efficiency, customer satisfaction, safety record, etc too, where, as is well established, monopolies can never score well, particularly so when they are government-run.

All in all, the case for opening up of the services, even if on a slightly sloping field favouring government players, all duly overseen by a properly constituted regulatory body, has become the imperative need of the day. Actually, it's been long long overdue.

PS: Another factor that may have contributed to the losses in a major way is perhaps the poor pay back on the huge (and largely useless) TTMC's, (mis)-using the JNNURM funds (more on that - here). And, that's one more reason why BMTC should be only a player, and not the equivalent, in the sector, of the prosecutor, judge and the jury.

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About 100 members from the Aam Aadmi Party also gathered at the Shantinagar Bus Stand to protest the bus fare hike (for the full text of the report in the New Indian Express, click here).

Likewise, "The youth wing of Bharatiya Janatha Party (BJP) held a protest rally at Mysore Bank circle , the heart of Bangalore city and demanded immediate roll back of the price hike" (for the full text of that report in the ToI, click here).

Now, AAP in its manifesto, has stated  "AAP believes that government should not be in the business of running businesses. Active participation of private sector is required for enterprises to thrive and create jobs. The government should encourage honest enterprise through lower compliance costs and a corruption-free environment, the provision of efficient and reliable infrastructure and services, and incentivising productive innovation" (for the full text, click here). And, NaMo's mantra has been "government has no business to be in business".

So, why are these parties then shying away from demanding opening up the services for competition?

As for Bangalore Bus Prayaanikara Vedike (BBPV), Socialist Unity Centre of India (Communist) - SUCI(C), and the lot, I expect they will continue to view such a demand as 'neo-liberalist', steeped as they remain stuck in 'pseudo-Socialism', even as they allege "Having spent crores of public money on unnecessary projects, BMTC is now shifting the entire burden of its maladministration and corruption on to the common people - This is daylight robbery”, while offering no solutions to the ever-worsening malaise.

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On April 24, BMTC hiked the fares by 15%, becoming the costliest public bus service in the country. The fare per km was 42 paise in 2008-09 which now is 86 paise. - - - Sources in the corporation however, criticized undertaking of construction projects like traffic and transit management centres and hinted at money being siphoned off from the traffic revenue by top order officials and ministers.

For the full report in the ToI, click here.

And, as long as BMTC remains a government monopoly player, scams of the TTMC kind (more on that is accessible here) are inevitable. In fact, the entire purpose of retaining them that way is for the mafioso's, of various kinds involved, to milk them, and thereby the people, in every way possible. The moot question is how long do people want to tolerate this?

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The current financial crunch in the Bangalore Metropolitan Transport Corporation (BMTC) has hurt even its bus acquisition process. The BMTC is unlikely to purchase new Volvo and air-conditioned buses in the near future. In what appears to be a consequence of back-to-back losses in the financial year 2012-13 and 2013-14, the BMTC has been asked to “reassess” its requirements for Volvo and A/C buses. The request to “reassess” has been made by the State government in the light of 310 A/C buses approved by the Centre under the JnNURM transition phase.

For the full text of the report in the Deccan Herald, click here.

Simultaneously, following are the extracts from a Mumbai ToI report (for the full text, click here)

The Mumbai Metro seems to be on track as the number of passengers has crossed the 20-lakh mark in the first week itself. On Sunday, enthusiastic commuters thronged Ghatkopar and Andheri stations forcing Metro authorities to down shutters to avoid overcrowding. An official of the Mumbai Metro One Pvt Ltd (MMOPL) said this was part of the crowd management procedure and the shutters were down "for only few minutes". The trains were on time, he added.

This very clearly indicates that there is a huge demand in Indian cities for A/C class travel, even if it is a bit costly. Now, while, Namma Metro could take care of it to some extent, what about the large swath of areas not covered by Metro, and from where BMTC is now going to be withdrawing? Shouldn't the government be considering opening out that to private players?

So, while the government restricts its services to the needs of the Aam Aadmi, let private players come in to meet the needs of the Khaas Aadmi, lest they revert to using their cars and cluttering up the city roads further.

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ToI report excerpts (for the full text, click here) and my comments thereof:

M N Sreehari, advisor to state government for traffic, transport and infrastructure wonders "why there can’t be private buses plying in areas where BMTC cannot operate in the night”. Both Rao and Sreehari also have worries about women’s safety.

Yes, Sir! Say that loudly.

Bhaskar Rao, former city transport commissioner and now Belgaum IGP, says the BMTC thinks it is there only to make money.

Vinay Sreenivas of the Bus Prayanikara Vedike, a citizen’s forum, says it is time that the system is revamped, especially with the nightlife extended. “Ply shared autos in areas where buses don’t or have mini buses to act as feeders,” says Sreenivas.

For both these worthies, the P-word is still a mind-set problem, although they quite well know that that alone can provide the big ticket solution. May be a reading of this will help get over the mind-set problem.

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