A Project Report by MBA Students of SAIAS, Ponkunnam on “How to SAVE KSRTC”

PERFORMANCE EVALUATION OF KSRTC AND RESTRUCTURING PROPOSALS

Presented Before Sri A.K SASEENDRAN,Hon.Minister for Transport

On 6th February 2017

SUBMITTED BY:-

DEPARTMENT OF MANAGEMENT AND COMMERCE ST.ANTONY’S INSTITUTE OF ADVANCED STUDIES,

PONKUNNAM

A Project as a part of Social Education Process in the field of people related economic issues.

“Public Private Co-operated Sustainable Public Transport”

YEAR KSRTC PRIVATE TOTAL

NO % NO % NO %

1965 901 20.61 3469 79.39 4370 100

2012 5803 27.04 15654 72.96 21457 100

2013 5812 20.74 22217 79.26 28029 100

2014 5848 24.75 17802 75.25 23650 100

2015 5675 24.77 19145 75.23 24820 100

TABLE SHOWING GROWTH OF KSRTC AND PRIVATE BUSES

Study By St.Antony’s Institute Of Advanced Studies,Ponkunnam


Private Buses KSRTC BusesDistricts 2012 2013 2014 2015 2012 2013 2014 2015

Trivandrum 414 431 431 450 1518 1501 1461 1539Kollam 626 837 928 1022 625 641 631 615

Pathanamthitta 573 1026 945 1042 247 288 308 313

Alappuzha 677 937 955 1053 474 467 467 48

Kottayam 444 1681 1627 1793 435 437 445 458

Idukki 627 912 415 457 207 226 230 235

Ernakulam 2295 3235 2535 2793 588 569 567 546

Trichur 136 2049 1956 2156 382 384 386 365

Palakkad 1176 1666 1170 1290 207 207 208 208

Malappuram 2004 3189 2118 2335 203 203 213 215

Kozhikode 1899 2517 1816 2002 201 235 240 237

Wayanad 181 422 484 533 236 248 270 252Kannur 2024 2715 1944 2142 283 267 269 270

Kasargode 362 600 478 527 119 139 153 154

TOTAL 15,664 22,217 17802 19145 5,803 5,812 5848 5675

TABLE SHOWING DISTRICT WISE DISTRIBUTION OF KSRTC AND PRIVATE BUSES

(Source: Economic Review 2015 published by the State Planning Board)



BUS POPULATION RATIOState Population

(in lakhs) STU PRIVATE BUSES TOTAL

No of Buses Bus/ lakh population

No of buses

Bus/lakh population

No.of bus Bus population Ratio

Kerala 340.00 5675 16.7 19145 56.3 24820 73.0

Tamilnadu 751.64 19950 26.6 7553 10.1 27503 36.7

Karnataka 632.21 23700 37.5 12906 20.4 36626 57.9

Kerala has the highest number of stage carriage buses per lakh population. Kerala is the only state where more than 77% of public transport is operated by private sector



STRENGTHS BrandGoodwillLand and buildingPublic securityGovernment supportHuman resources

WEAKNESSESAbsence of an effective MISSchedule cancellationLack of professional managementUndue influence of trade unionsHuge debt with high interest rateUnderutilisation of modern technologyUnsystematic schedule patternUnderutilisation of manpower and physical assetsHigh labour turnover

OPPORTUNITIES Fleet ownership in nationalized sectorGovernment supportAllocation of low floor buses by Central Government with subsidyPassenger satisfactionRoad network

THREATS OF KSRTC77% of bus transportation owned by private sectorPledge of key assets to raise working capital PensionLack of planningNon profitable schedulesPrice variation of petroleum products

SWOT ANALYSIS



BUS FARES FOR ORDINARY, LOW FLOOR NON AC&FP FOR THE 1ST 100 KMS

Fare stage Distance Private Ordinary

KSRTC

Ordinary JNNURM FP New FP OLD

01 2.5 700 700 800 1000 1000

02 5 700 700 800 1000 1000

04 10 1000 900 1200 1400 1000

08 20 1700 1700 1900 2200 1400

12 30 2300 2300 2600 3000 2100

16 40 2900 3000 3300 3800 2800

20 50 3600 3700 4000 4400 3400

24 60 4200 4300 4700 5100 4100

28 70 4900 5000 5400 5900 4800

32 80 5500 5700 6100 6500 5500

36 90 6100 6300 6800 7200 6200

40 100 6800 7000 7600 8200 6800

60 150 100(Rs) 110(Rs) 111(Rs) 119(Rs) NAStudy by St.Antony’s Institute Of Advanced Studies, Ponkunnam


Sl.No

CompanyName

No ofBuses

FleetUtilization %

LoadFactor

Staff Bus StaffRatio

KM Per ltr

01 APSRTC 21764 99.5 66.2 118854 5.49 5.11

02 MSRTC 16164 94.5 62.5 98097 6.42 4.92

03 UPSRTC 8521 95.7 64.3 32081 3.93 5.26

04 KnSRTC 7188 92.8 75.4 33678 5.05 4.81

05 KSRTC 5623 81.8 83.2 39435 8.57 4.22

06 RSRTC 4448 92.9 71.5 20788 5.03 5.04

07 NWKn SRTC 4199 93.0 63.4 21071 5.40 5.04

08 TNSTCkkm 3503 94.2 76.4 22664 6.87 5.51

09 TNSTC Vilp 3304 96.1 82.3 21657 6.82 5.52

10 TNSTC Cbe 3104 97.0 80.1 18688 6.39 5.02

11 TNSTC Slm 2055 95.7 76.0 12826 6.52 5.44

12 TNSETC 1002 90.4 85.1 6690 7.38 5.02

PHYSICAL PERFORMANCE OF MAJOR SRTU’S DURING 2010-2011

(Source: Report of the Sub Group on SRTU by Planning Commission 2012- Page No 50)



Name of RTC Buses Employees Bus ProductivityKM/Bus

Employee ProductivityKM/Staff

All INDIA 98,474 5,61,220 336 52.39

Andra SRTC (2013-14) 19,289 1,22,109 409 58.84

Karnataka SRTC 8,305 38,085 357 71.11

Gujarat SRTC 7,753 39,540 428 72.45

Bangalore Metro TC 6,703 36,848 215 35.20

KERALA SRTC 5,778 40,876 328 37.26

Delhi T C 5,047 34,643 189 23.40BEST Mumbai City Service 4,276 35,939 183 18.70

T N STC Kumbakonam 3,804 24,331 474 70.17

Chennai Metro Trspt 3,777 24,052 302 40.19

T N STC Coimbatore 3,192 19,009 408 65.90

T N STC Madurai 2,526 14,865 439 70.78

PHYSICAL HIGH LIGHTS OF MAJOR STUS



PARAMETERS KERALA SRTC

TAMILNADU SRTC (KU)

KARNATAKA SRTC

ANDRA SRTC

Income–Earnings Paisa per KM 3257.9 2767.9 3272.1 2928.0

ExpensesSalary 2172.0 1320.0 1070.0 1141.0Fuel 1706.1 1130.5 1366.0Other Materials 331.7 112.8 188.2Other Expenses 671.4 395.1 715.8Total Expenses 4881.2 2958.4 3340.0 3301.7Loss per KM 1623.3 190.5 67.9 373.7Average Km per Bus 327.5 473.4 357.2 409

Loss per bus per day (Rs.) 5316 909 243 1528

Yearly Loss Per bus 19,40,340 3,31,785 88,695 5,57,720

COST OF OPERATION OF KSRTC AND OTHER SOUTH INDIAN STUS 2014-15

(Source: Performance review of STUs, IJTM, CIRT, Pune, April-June 2015 Issue)



Parameters KSRTC Tamilnadu SRTC Karnataka SRTC Andra SRTC

Number of Buses 5,778 3,804 8,305 19,289

Number of employees 40,876 24,331 38,085 1,22,109

Bus Staff Ratio 8.79 6.75 5.02 6.33

Fleet Utilization Percentage 80.5 94.7 91.3 91.1

Schedule Cancellation Percentage

19.5 5.3 8.7 8.9

KM per bus/ day 327.5 473.7 357.2 409.0

KM/ employee/day 37.26 70.17 71.11 58.84

Income per KM (Paisa/KM) 3257.9 2767.9 3272.1 2928.0

Expenses per KM (Paisa/KM) 4881.2 2958.4 3340.0 3301.7

Salary Expenses/ KM (Paise/KM) 2172.0 1320.0 1070.0 1141.0

TABLE SHOWING OPERATIONAL EFFICIENCY OF SOUTH INDIAN STUS

(Source: Performance Review of State Transport Undertakings published by Association of State Transport Undertakings in Indian Journal of Transport Management of Central Institute of Road Transport Pune, April-June 2015 Issue)



EMPLOYEE SATISFACTION



Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

TOTAL

No % No. % No % No. % No. %

Satisfied 76 68.47 262 86.75 156 82.54 303 87.07 797 83.89

Dissatisfied 35 31.53 40 13.25 33 17.46 45 12.93 153 16.10

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING EMPLOYMENT IN KSRTC

(Source: Primary Data)Study By St.Antony’s Institute Of Advanced Studies,Ponkunnam


Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

TOTAl

No % No. % No % No. % No. %

Satisfied 45 40.5 91 30.1 73 38.6 95 27.30 304 32

Dissatisfied 66 59.4 211 69.8 116 61.3 253 72.70 646 68

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING MANAGEMENT EFFICIENCY IN KSRTC



Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

Total

No % No % No % No % No %

Satisfied 73 65.77 189 62.58 113 59.79 183 52.59 558 58.73

Dissatisfied 28 34.23 113 37.42 76 40.21 165 47.41 392 41.26

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING TRADE UNION INFLUENCE IN KSRTC

(Source: Primary Data)



Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

Total

No % No %

No % No % No %

Satisfied 11 9.91 79 26.1 31 16.40 54 15.52 175 18.42

Dissatisfied 100 90.09 223 73.8 158 83.60 294 84.48 775 81.5

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING INCREASING RUNNING KILOMETERS IN KSRTC




Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

Total


Satisfied 53 47.75 153 50.66 79 41.80 124 35.63 409 43.05

Dissatisfied 58 52.25 149 49.34 110 58.20 224 64.37 541 56.94

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING WELFARE MEASURES IN KSRTC



Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

TOTAL


Satisfied 45 40.5 121 40.06 87 46.03 151 43.39 404 42.5

Dissatisfied

66 59.4 181 59.94 102 53.97 197 56.61 546 57.47

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING DISCIPLINARY ACTION IN KSRTC



Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

TOTAL


Satisfied 25 22.5 95 31.46 80 42.33 175 50.29 375 39.47

Dissatisfied 86 77.4 207 68.54 109 57.67 173 49.71 575 60.5

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES REGARDING PROMOTION POLICY IN KSRTC



Employees Response

Empanel Drivers

Regular Drivers

Empanel Conductors

Regular Conductors

TOTAL


Satisfied 102 91.89 283 93.71 169 89.41 318 91.38 872 91.78

Dissatisfied 9 8.11 19 6.29 20 10.58 30 8.62 78 8.21

Total 111 100 302 100 189 100 348 100 950 100

SATISFACTION LEVEL OF EMPLOYEES WITH PASSENGERS OF KSRTC




Sl No FACTORS

PASSENGERS RESPONSESATISFIED DIS SATISFIED

NUMBER % NUMBER %

1 Preference of KSRTC 1950 78 550 22

2 Behaviour of staff 1575 63 925 37

3 Time schedule management 650 26 1850 74

4 Concession to Student 1675 67 825 335 Routing system 1100 44 1400 566 Approaches of employees 1675 67 825 33

7 Cess introduction and its impact 475 19 2025 81

8 Secured journey 1575 63 925 379 Issue of season ticket 1750 70 750 30

TABLE SHOWING SATISFACTION LEVEL OF PASSENGERS

(Source:Table No.69-78



Co-operation Instead of Competition

Public Private Co-operation in Public Transport



Sl. No Distance in KM Fare in PAISA Fare per KM in PAISA

01 2.5 700 28002 5.0 700 14003 7.5 900 12004 10.0 1000 10005 12.5 1200 9606 15.0 1300 8707 17.5 1500 8608 20.0 1700 8509 22.5 1800 8010 25.0 2000 8011 27.5 2100 7612 30.0 2300 7713 32.5 2500 7714 35.0 2600 7415 37.5 2800 7516 40.0 2900 7317 42.5 3100 7318 45.0 3300 7319 47.5 3400 7220 50.0 3600 72

Average KM Fare of an Ordinary Service in the 1st 50 KMs 1896/20=94.8 @ 95

Table showing KM of a stage and bus fares in ordinary service

(Source: Bus Fare Revision Notification No GO(P) 38/2014/Tran dated 19th May 2014)Study By St.Antony’s Institute Of Advanced Studies,Ponkunnam


ATTAINABLE EPKM

•Expected Maximum Earning Per Km will be the average KM fare × maximum number of passenger capacity

•Majority of the ordinary buses of KSRTC and private sector are with a route distance of less than 50 KM

•Average KM fare of an ordinary bus is 95 paise(upto 50 KM)

•Maximum passenger capacity of an ordinary bus is 60 (48+12).

•Attainable earnings of an ordinary bus = 60×95 = 5700 paise(at 100 % occupancy ratio from start to end of the service)



OCCUPANCY RATIO AVERAGE ATTAINABLE EPKM (in Rs)

100% 57.00

90% 51.30

80% 45.60

70% 39.90

60% 34.20

50% 28.50

40% 22.80

ATTAINABLE EPKM IN PLAIN ROADS



ATTAINABLE EPKM IN GHATS SECTION

In the case of Ghat section the KM fare will be enhanced by 25%

Occupancy Ratio Average Attainable EPKM (in Rs)

100% 71.25

90% 64.13

80% 57.00

70% 49.88

60% 42.75

50% 35.63

40% 28.50



EPKM AND EPBAn analysis of average EPKM of Limited Stop, Ordinary service of KSRTC in

Nationalised and private Sector in Revenue districts of Kottayam, Idukki and

Ernakulam for 26 Months from April 2014 to May 2016 reveals the

following:-•Most of the Ordinary Services of KSRTC is operating less than 50% Occupancy Ratio.

•Main reason for this low occupancy ratio is the excess number of Buses.

•Even the Occupancy Ratio in Private Buses which are operating in competition with KSRTC Buses are also less than 50 %.



ROUTE NATURE OF ROUTE

Avg EPKM(in Rs)

OCCUPANCY RATIO(%)

•Kottayam –Kumily•Changanassery-Kumily•Kottayam –Kattappana•Changanassery - Kattappana

50% Ghat Section and 50% Non Ghat Section

24 - 32 43 -51

Ernakulam –Vaikom-Kottayam Metro Region 26-33 46-58

Aluva- Perumbavoor-Moovattupuzha Minimum overlapping by private buses

36-42 63-74



ANALYSIS OF EPKM

TRAFFIC SURVEY

A Traffic Survey conducted at Ponkunnam on all KSRTC and

Private Buses passing through Kottayam-Kumily, KK Road,

between 6 AM to 7.30 PM which indicates that:-

• Most of the KSRTC and Private Buses preceding to the same

direction with less than 50 % occupancy ratio or Passenger

capacity.

• This is due to excess capacity of buses in this route.



TABLE SHOWING BUSES MOVING TOWARDS KANJIRAPPALLY DIRECTION

BUS NUMBER PERCENTAGE

KSRTC 130 38.2

PRIVATE 210 61.8

TOTAL 340 100.0

BUS NUMBER PERCENTAGE

KSRTC 124 36.0

PRIVATE 220 64.0TOTAL 344 100.0

TABLE SHOWING BUSES MOVING TOWARDS KOTTAYAM DIRECTION



Category of Persons Percentage of concession

2011-12 2012-13No Amt. of loss

CroreNo Amt of loss

Crore

Physically Handicapped 70 33,669 57.02 34,896 65.43

Mentally retarded 50 1,249 3.54 1,708 6.15

Blind 100 9311 22.53 9,444 25.29

Deaf &Dump 50 4855 39.15 5074 45.30

MLAs Ex MLAs MPs 100 397 12.86 397 12.86

Freedom Fighters 100 2424 5.86 2429 6.51

Student Passes Issued 17.79 NA 50.43 N A NA

REVENUE LOSS ON A/c of Passes to PUBLIC

51,905 191.39 53,948 161.54

Employee of KSRTC 100 40,372 108.13 40,372 108.13

Pensioners of KSRTC 100 35,491 2.02 35,491 2.02

REVENUE LOSS ON A/c of Passes to PUBLIC

75,863 110.15 75,863 110.15

TABLE SHOWING THE CATEGORY WISE LOSS OF REVENUE TO KSRTC ON ACCOUNT OF CONCESSIONS

(Source: Accountant General Report)Study By St.Antony’s Institute Of Advanced

Studies,Ponkunnam


THANK YOU.....



A Project Report by MBA Students of SAIAS, Ponkunnam on “How to SAVE KSRTC”

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