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Maharashtra

State Road

Transport

Corporation The Lifeline of Maharashtra

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WELCOME TO THE PRESENTATION ON

BEST PRACTICES IN MSRTC

Formation of MSRTC 3

Established in June 1948, with 36 Bedford Vehicles.

Earlier known as Bombay State Road Transport Corporation (BSRTC).

469 vehicles were operated on 150 routes on March 1949.

Road Transport Act came into force in 1950.

Reorganization of States in 1956 & Division of bilingual Bombay State in Gujarat and Maharashtra on 1st May 1960 resulted in transferring traffic operations to respective States.

Formation of MSRTC… 4

In the year 1960 the traffic operations in Vidarbha and Marathawada managed by Provincial Transport Services in Madhya Pradesh and Road Transport Department in Hyderabad were merged with BSRTC and it was renamed as MSRTC.

Nationalization of passenger transport in State completed in 1974 - 75.

As on date MSRT Corporation has Monopoly of Stage and Contract Carriage Services.

MSRTC STRUCTRE 5

The Corporation has 4 tier system :

Central Office

6 Regional Offices

30 Divisional Offices and 32 Divisional Workshops

248 Depots

In addition the Corporation has following

establishments:

1 Central Training Institute, Pune

9 Tyre Retreading Plants

3 Workshops for building Bus bodies

The Strength of MSRTC Today 6

17,057 Routes

17,761 Buses

1,04,214 Employees

Traffic Staff – 74,532

Workshop Staff- 19,576

Administration Staff – 10,106 including 704 Officers

578 Bus Stations

3,639 Pickup Sheds

3,580 Refreshment Rooms and Stalls

( Book, Tea, Cold Drink etc..)

Various Brands of Buses 7

Ashvamedh (A.C. Multi axle)

Shivneri (A. C. Volvo)

Sheetal (A.C. Semi Luxury)

Hirkani Semi Luxury

(With Air Suspension )

Various Brands of Buses..

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Parivartan (Ordinary)

CNG Bus.

Wari - (65 seater)

Yashavanti (Midi )

(31 Seater)

Manav Vikas

City Bus JNnurm

ASHVAMEDH MULTI AXLE BUSES

54 SEATER ASHVAMEDH MULTI AXLE A.C. VOLVO BUSES INTRODUCED IN THE FLEET.

TWO SUCH BUSES RUNNING ON DADAR MUMBAI –PUNE ROUTE.

MORE BUSES LIKELY TO BE ADDED ON PPP MODEL.

SHIVNERI A.C. VOLVO BUSES

113 SHIVNERI BUSES RUNNING ON MUMBAI-PUNE, NASHIK-PUNE, AURANGABAD –PUNE, THANE-PUNE ROUTES.

23 OWN & 90 HIRED BUSES.

WI-FI INTERNET SERVICE IS BEING PROVIDED FREE OF COST. PASSENGERS CAN USE INTERNET SERVICE WHILE TRAVELLING.

GPS BASED VTS & CCTV IN BUSES

GPS & CCTV IN SHIVNERI BUSES WITH LCD TV.

GPS BASED VEHICLE TRACKING SYSTEM(VTS) IN 200 SEMI LUXURY BUSES.

VTS USEFUL IN MONITORING BUS SPEED & BUS ROUTES.

MORE BUSES WILL BE COVERED IF THIS PROJECT BECOMES SUCCESSFUL.

SHEETAL SEMI-LUXURY A.C. BUSES

SHEETAL SEMI LUXURY BUSES INTRODUCED IN THE FLEET FOR PASSENGERS WHO CAN NOT AFFORD SHIVNERI VOLVO BUSES.

1st TO START SEMI LUXURY A.C. BUSES.

AT PRESENT 11 SHEETAL BUSES IN THE FLEET RUNNING ON NASHIK-PUNE,MUMBAI-PUNE & AJANTA- T- POINT TO AJANTA ROUTES.

YASHVANTI MIDI BUSES

31 SEATER MIDI BUSES FOR REMOTE & HILLY AREAS.

596 YASHVANTI BUSES ADDED IN THE FLEET.

USEFUL IN CONTROLLING CLANDESTINE OPERATIONS.

MANAV VIKAS SCHEME 14

The Government of Maharashtra had proposed an

excellent scheme to provide free transport to girl students in rural areas studying from 8th to 12th Class under the Manav Vikas Scheme.

MSRTC was appointed as the Nodal Transport Agency to run this service where 625 such buses are being run by MSRTC.

Rs.90.62 CR received from state govt. for purchasing the buses. RS.5.10 lakh per bus will be given for recurring expenses.

Induction of New buses

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Seeing the urgent necessity to keep the MSRTC fleet young, to save fuel cost and to maintain customer loyalty, around 8500 new buses have been added in the last 3 years as shown below :

2010-11 2631 buses

2011-12 2858 buses

2012-13 2988 buses

The designs of these buses are also being made more aero-dynamic with better windows, doors and aesthetic sense.

ETIM, ORS & SMS ALERTS 16

ALL THE TICKETS ARE BEING ISSUED USING ETIMs.

ONLINE RESERVATION SYSTEM MADE AVAILABLE TO PASSENGERS AND PRIVATE BOOKING AGENTS.

STUDENT PASSES & TRAVEL AS YOU LIKE PASSES IN THE FORM OF RFID CARDS, STARTED ON PILOT BASIS.

SMS ALERTS TO E-TICKET BOOKING PASSENGERS.

CNG BUSES 17

In the last few years, MSRTC has inducted 60 CNG buses in Mumbai and Thane Divisions.

MSRTC has installed CNG filling station in Thane with the help of Mahanagar Gas Ltd.

MSRTC is planning to introduce 200 more CNG buses in the first phase to run in the MMR area and 300 more CNG buses in the next year.

Seeing the huge increase in diesel prices, this move will save fuel cost and make MSRTC’s MMR operation environment friendly.

Jet Cleaning Machines

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Seeing the urgent need to modernise the cleaning of buses belonging to MSRTC, Jet Cleaning Machines have been introduced at 80 depots in the last 2 years.

167 more depots will be provided with Jet Cleaning Machines during this financial year. This will help in maintaining and cleaning of buses in a much more scientific and organized way.

DEVELOPEMENT OF BUS STATIONS ON B.O.T. MODEL

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Excellent bus stations at

Indapur

Sinnar

DEVELOPEMENT OF BUS STATIONS ON B.O.T. MODEL ..

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Nashik

A.C. bus station at Dadar .

DEVELOPEMENT OF BUS STATIONS ON B.O.T. MODEL …

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During last 3 years, upgradation of 50 bus stations completed.

Bus stations at Panvel, Aurangabad, Nashik mahamarg, Akola & Ratnagiri will be developed as a model with the help of consultants.

Karhad bus station will be developed with Govt. grants.

Bus Station , Aurangabad (Prop)

Bus Station, Ratnagiri (Prop)

Conductor less Operation 22

MSRTC in last three months has focused on running semi luxury buses on major routes WITHOUT CONDUCTOR.

This will save huge amount of money for ST without causing any inconvenience to passengers

So far all semi luxury buses on Mumbai-Pune, Pune-Satara, Pune-Sangli, Pune-Kolhapur,Pune-Nashik,Pune-Aurangabad and back have been made conductor less.

All A.C. Volvo buses are being run WITHOUT CONDUCTOR.

Computerisation of Stores & Accounts 23

Computerisation of Stores & Accounts Department including Pay roll proposed.

M/s E&Y appointed as consultant.

R.F.P. likely to be floated very soon.

State Data Centre to be used.

Use of Alternate Environment friendly fuels

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Seeing the urgent need to switch to alternate environment friendly fuels to offset the rising cost of diesel, Ethanol blended diesel will be introduced as alternate fuel in Uran Depot on Pilot basis.

The Corporation Board has already given approval for this project. The work of installation of underground tanks and pipeline is being executed.

ASRTU AWARDS 25

MSRTC has been awarded for

minimum operational cost in

mofussil services for the year 2010-

2011.

MSRTC has been awarded for

highest profit making in mofussil

services for the year 2011-2012.

Need For Automatic Fare Revision Formula

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The fare revision was made on adhoc basis considering the increase in prices resulting in substantial input cost rise.

The fare revision was subject to approval of Government. There was time-gap between need for fare rise and actual sanction.

The delay in fare revision affects : The financial viability & cash flow position Development & expansion plans Loans & borrowings Interest cost Profit & loss.

COMMITTEE FOR FARE REVISION FORMULA

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A committee was set up by Government to recommend a formula for revision of fares for mofussil and city services in 1992.

Secretary(Transport), Joint Commissioner Transport, Engineering Economist, a representative of Grahak Panchayat, AGM, BEST, Mumbai and Chief Accounts Officer, MSRT Corporation were the Members.

THE COMMITTEE .. 28

The committee has submitted their report in Oct 1995 to the Government with the recommendation of Absolute prices formula for Automatic fare revision.

The formula was accepted by the Government in April 1999.

FACTORS DETERMINING THE COST 29

Major factors which determine the operational cost :

Diesel.

Tyres and tubes.

Chassis and spares.

Man power.

Cost of capital.

CRITERIA FOR FORMULA 30

The formula should satisfy the following criteria:

Simple to understand.

Easy to compute.

Should provide for reasonable increase in fare without over-burdening the passengers.

Base for the Formula 31

The formula is based on the following Items

Dearness Allowance (Manpower cost)

Diesel Cost

Tyres And Tubes cost

Chassis cost

(Being Combination of all spares and consumables)

Basis of cost components. 32

Brake up of inputs into main groups on the basis of the operating expenses for the year 1993-94.

Group of inputs Operating expenses Percentage

Contribution to fare of Rs.1.15 per stage of 6 kms.

Formula

Basic pay & related items 28% 32.2 paise Not considered

D. A. & related items 22% 25.3 paise 92%/25.3/.875=4.2

Spares & related items 15% 17.3 paise 4lac/17.3/.875=26400

Diesel & related items 25% 28.7 paise 6.80/28.7/.875=27

Tyres & Tubes 8% 9.2 paise 6230/9.2/.875=774

Other items (of fix nature) 2% 2.3 paise Not considered

Automatic Fare Revision Formula

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Name of the Item Automatic Formula ( Ordinary service)

1 Dearness Allowance

For every 4.2% (Now 1.22%) increase in D. A., the passenger fare will increase by 1 paisa per stage of Six Kms.

2 Diesel For every 27 paise rise per liter in diesel price , the passenger fare will increase by 1 paisa per stage of Six Kms.

3 Tyres & Tubes For every Rs.774/- increase in Tyres & tubes price, the passenger fare will increase by 1 paisa per stage of Six Kms.

4 Chassis For every Rs.26400/- increase in Chassis price, the passenger fare will increase by 1 paisa per stage of Six Kms.

The total of all the four items is the additional fare for ordinary service without Passenger tax and it is added to the existing fare after adding the passenger tax to arrive at new fare. The arrived fare should be rounded to nearest 5 paise.

Automatic Fare Revision formula for other Services 34

The Automatic Fare revision formula described earlier is applied for ordinary service only. For other services the effective fare should be worked out by applying following multiplier to the ordinary service fare.

Sr. No Type of Service Multiplier

1 Ordinary 1.00

2 Express 1.11

3 Night 1.18

4 Semi- Luxury 1.36

5 Luxury 1.72

6 Deluxe 2.08

7 Air conditioned 3.27

Example of fare revision formula ( ordinary service )

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Item Prices as on 30-06-11

Prices as on 26-07-12

Difference / increase

Dividing factor

Increase in basic fare per stage of 6 kms. (in paise)

D. A. (%) 51% 65% 14% 1.22% 11.47

Diesel (Rs.) 45.20 46.81 1.61 27 paise 5.96

Chassis (Rs.) 967610 1126301 158691 26400 6.01

Tyre & Tubes (Rs.) 14219 14925 706 774 0.91

Total Increase 24.35

Add: Existing Fare per Stage (excluding tax) 397.03

Total fare per stage (excluding tax) 421.38

Add: passenger Tax (@ 17.5% on collected fare) (421.38/82.5%x 17.5%)

89.38

New Fare (including Tax) 510.76

New fare Rounded to nearest 5 paise 510.00

Fixation of fare for other services (per stage of 6 Kms. )

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Type of Service Ordinary Service fare (in paise)

Multiplier New fare (in Paise)

Fare rounded to nearest 5 paise.

Ordinary Service

510.00 1.00 510.00 510

Express 510.00 1.11 566.10 570

Night 510.00 1.18 601.80 605

Semi-Luxury 510.00 1.36 693.60 695

Luxury 510.00 1.72 877.20 875

Delux 510.00 2.08 1060.80 1060

Air -conditioned

510.00 3.27 1667.70 1670

Automatic formula for City Service fare 37

•The fare structure for City Service is different.

• It is chargeable for 4 kms. first Stage and for every additional 2 kms., additional fare is to be charged at varying rates based on the distance slab.

•In addition nutrition surcharge is collected on behalf of the State Govt.

•The Passenger Tax on City Service is 3.5% on collected fare.

• The Committee suggested the multiplier of 1.38 for distance up to 4 kms. and 0.21 for every 2 kms. thereafter.

Features of the Formula 38

• The STU can increase the fare on the basis of Automatic formula with the approval of State Transport Authority.

• The Fare increase is to be done usually in the month of September/October every year.

• If prices of inputs increase substantially and are not manageable, fares can be revised again on the basis of the formula.

Other Recommendations 39

The committee recommended reduction in Passenger Tax from 17.5% to 15% which is not yet accepted by Govt.

The Corporation can reduce the fare up to 33% in A. C. service & up to 15% in other services in all seasons from 20-06-2006.

Limitations of the Automatic fare revision Formula

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The Formula covers only the 87.5% cost of input cost rise & 12.5% cost rise should be met by improvement in performance by the corporation which is not practically possible.

The Formula considered only D. A. element of the Manpower cost. The incremental increase in basic pay & Allowances are not considered.

Increase in salary on account of labour settlement is not considered in the Formula for which separate fare revision is suggested by the committee with the approval of the State Government.

Limitations… 41

The New items like Toll Tax , service Tax, Increase in Gratuity limit from Rs.3.50 lacs to Rs.10 Lacs, increase in Earned leave accumulation from 180 days to 300 days & Medical Leave from 240 days to 360 days, increase in medical reimbursement expenditure etc.

Increase in compensation of third party risk.

The formula covers only 70% of the input cost .

New Committee 42

The Govt. has appointed a one man Committee consisting of Shri P. M. A. Hakeem, retired Secretary to Government of India in order to determine a revised automatic fare revision formula on 16th July, 2012 by taking into account the increasing expenditure on cost elements :

D.A. ,

Diesel ,

Tyres & Tubes,

Chassis ,

Elements like toll charges ,service tax etc. And

Requirement of Passenger Safety Fund.

The Committee has submitted their report to Government. The revised formula suggested by the Committee is entirely different from the existing formula. The new formula is yet to be accepted by the Government.

Features of formula 43

The Committee considered only 92.5% elements of cost in the formula and remaining 7.5% is expected to be met by improvement in performance by the Corporation.

The Committee has suggested the Corporation to adopt telescopic fare instead of existing constant fare for all the stages.