ORIGIN AND GROWTH OF APSRTC

INTRODUCTION :

Passenger road transport is a public utility having sufficient influence on all

the social and economic development of a country. Passenga road transport

gathered a momentum in India with the passing of the road transport corporations

acts in 1950 by the Indian Parliament. In order to encourage state governments to

nationalise private transport, the central government has been making matching

capital contribution also.

Each transport system in the country has a long history, except road transport

all others like railways, water ways have been in public sector since the beginning.

Planning commission has rightly observed, the significance of the transport sector

lies not only in the specific services it renders but even more in unifying and

integrating influence, its exerts upon the economy, enhancing productivity, widening

the market and imparting new stimuli to economic activity.

Realisation on the part of the government of the importance of the road

transport of the passengers led to the establishment of the state road transport

undertakings (S.T.U's) for improving and expanding the bus facilities in the country.

The first road transport undertaking came into being in 1932 in the princely state of

Hyderabad.

ORIGIN OF APSRTC :

The origin of APSRTC dates back to June 1932, when it was first established

as Nizam State Rail & Road Transport Department (NSRRTD), a wing of Nizam

State Railway in the erstwhile Hyderabad State with 27 buses and 166 employees

with a capital of Rs. 3.93 lakhs. Parcel services were introduced in 1933 to ply

b w e e n Nalgonda and Hydembad. The railways were satisfied with the operation

of road services at that time and wanted to expand other areas of ex-Nizam state,

hence it was necessary to have fujl-fledge department as the Road Transm

Services (RTS) in 1936-37. Later the RTS department was under the control of

Hyderabad State Government from November lst, 195 1. On January 1 ln, 195 8 this

corporation was renamed as 'Andhra Pradesh State Road Transport Corporation'

under the Road Transport Corporation Act 1950, with an objective of providing an

effective, efficient and adequate, economical and properly coordinated road

transport services in the state.

During the past 74 years, it has registered a steady growth from 27 to 19,3 19

buses with 766 bus stations, 212 depots and 1,880 bus shelters. Besides covering the

entire state of Andhra Pradesh (AP) with inter-district, inter-city and intra-city

services in all major cities, APSRTC operates services to the neighboring states of

Maharastra, Orissa, Chattisgarh, Goa, Kamataka, Tarnilnadu and Pondycherry. The

APSRTC transports around 12 million people every day with the services rendered

by a dedicated strength of 1.17 lakh employees.

Andhra Pradesh State Road Transport Corporation owns a bus body-building

unit with a capacity to facilitate about 700 to 800 bus bodies per annum. It provides

passengers amenities on a huge scale. This corporation has built 523 bus stations in

urban and 242 in semi-urban, totally 765 bus stations and 1880 bus shelters and two

of its bus stations are one in Vijayawada and the other in Hyderabad are said to be

the largest bus stations in Asia. The total number of routes offered is 7822.

The entire network is under the administrative control of 23 Regional

Managers in 6 Zones. Zonal head quarters at Hyderabad Automation has become the

part of growth in APSRTC. All the depots have been computerized. All major towns

in A.P. have been provided with computeriied advance reservation and current

booking facility. In twin cities computerized Bus Pass issue has been introduced for

the convenience of the Bus Pass holders. Various types of coaches like Lwrury, A.C.

sleepers (Mayuri and Garuda with Volvo engine) in inter-district models and Veera,

metro express services in City models haie been introduced by APSRTC. Table-3.1

shows all types of buses operating by APSRTC. Every year APSRTC are being

procured new buses to meet the needs of the passengers. Table-3.2 shows the new

buses are added during the past 10 years. It maintains its own website

(www.apsrtc.gov.in) under the name with a view to facilitate intending passengers to

know about the services and schemes offered to various sections of commuters.

Table-3.1: Types Of Buses Operated By APSRTC

Source: Office of APSRTC Managing Director, Hyderabad

District Buses

Garuda (AC) - Volvo

AJC - Hi Tech (Megadhoot)

Semi Sleeper

Hi-Tech (Super Luxury)

Luxury (Deluxe)

Express

Ordinary (Palle Velugu)

Gramani (village link services)

Rythu Bazar i

Numbers

84

12

4

76 1

755

3228

10540

596

550

City Buses

Metro Liner (Veera)

Metro Express

Ordinary I

Double Decker

Numbers

123

497

3068

3

Table 3.2 : Buses added during the past 10 years

Source : Office of the APSTRC, Hyderabad.

Year

1996- 1997

1997- 1998

1998- 1999

1999-2000

2000-200 1

200 1-2002

2002-2003

2003-2004

2004-2005

2005-2006

ORGANISATIONAL STRUCTURE :

The form of organisation has an important bearing on the success of the

enterprise. The right choice would promote good administration which would lead to

Addition

479

805

500

3 6

109

2 1

-

14

23 8

204

sound management and efipient production or service on the other hand, a wrong

Total

2484

2400

1782

1556

1690

1304

668

1347

1970

244

Replacement

2005

1595

1282

1520

1581

1283

668

1333

1732

244

choice hinders good administration which would result into uneconomic production,

Hired

204

237

422

662

1547

1316

1307

1445

1689

1604

inefficient service and'unscientific management'.

Third, organisation structure deteimines the location of decision making in

the organisation. A departmental store, for instance, may follow a structure that

leaves pricing, sales promotion and other largely upto individual departments to

assume that varied departmental conditions are considered. In contrast, an oil

refinery may concentrate on production, scheduling and maintenance decisions at

the top levels to assure that interdependencies along the flow of work are

considered.

Fourth, structure can create the proper balance and emphasis of activities.

These more critical to the enterprises success might be placed higher in the

organisation. Research in Pharmaceutical Company, for instance might be signed

out for reporting to the general manager or the Managing Director of the company.

Activities of comparable importance might be given roughly equal levels in the

structure to given the equal emphasis. Personal might rank along side

An indispensible ingredient in the process of public enterprise management

relates to planning for the organisation for the organisational structure of the

enterprise. After the general and specific objectives are determined and the Board of

Management is constituted, the next step followed in framing of the organisational

structure below the board with a view to set the objectives realised.

"Organisation is the arrangement of personnel facilitating the

accomplishment of some agreed purpose through allocation of functions and

responsibility"'. It is a mechanism through which the management carried out its

business activity. Since the organisation is the foundation on which the entire

management is built, its soundness results in effective management of enterprises

activity. On the contrary, illogical unsound or unstable and incapable in achieving its

objectives. A sound organisational struche besides making it possible to cffcttively

translate the policies of the enterprise activity.

The organisational structure is one of the important factors which influences

the effectiveness of an organisation, even though there are a number of other factors

which also influence the efficiency of an organisation." Another aspect which

influences the effectiveness of an organisation and decentralisation which may be

obtained within the organisation.

Any setup that is envisaged for an industry like passenger road transport, will

have to avoid parallel functioning of important fbnctionaries at various levels.

Another factor which has to be taken care of in this industry is the organisational

setup for the workshops organisation and the operational setup. The most important

factor that necessitates constant review and re-organisation.

During the period of 74 years of its functioning the APSRTC has made

changes thrice in its organisational set up i.e., firstly in 1965, secondly in 1978,

thirdly in 1994 and also recently in 2001. Infact; attempts have been made to bring

about drastic changes in the organisational setup of the corporation.

Earlier the APSRTC organisational setup comprising of zonal set up pattern,

from 24.5.94 to 12.4.2001, as the administrative levels are Head Office, Zone,

Region and Depot.

Now, new set up called 'Regional setup' came in existence with effect from

13.4.2001 replacing the existing zonal setup. Under new setup, the organisation

structure of the corporation continues to follow four tier system under which

administrative levels are identified at Head Office, Region, Division and Depot.

The Regional Manager is under the control of the Managing Director. As on

30.6.2006, there are 23 Regions and under these regions, 42 divisions are

functioning. Under these divisions, 212 depots are functioning with the structure, the

organisation maintained about 1,11,153 employees with 19,3 17 fleet. The present

organizational setup of APSRTC is explained in the following paragraphs.

A detailed organizational structure of APSRTC as shown in Chart 3.1.

62

Chart 1.1 : Organisation structure of APSRTC (2005)

Soutee: Oflice of APSRTC bhagq Dimtor, HyM.

1. Board APSRTC has Statutory Board consisting 13 members

like Chairman, Vicechairman and Mananging Director,

six directors, principal Secretary to Govennnent of

Andhra Pradesh (T,R & B Dept.), principal FA & CAO,

South Central Railway, Hyderabad, Chief Engineer

(R&B), Govt. of A.P., Principal Secretary to Govt. of

A.P (Finance) W& P Dept. and Director (RT), Dept. of

Road Transport & Highways, Govt. of India, New Delhi

are lookafter the affairs of the entire corporation for

smooth functioning.

2. Chairman 3 Chairman is the highest authority in the corporation. It is

a political post. He is nominated by the government, who

happens to be a MLA.

3. VC & M.D Vice-chairman and Managing Director, is to look after

the overall administration of the corporation under the

Chairman. Generally he is IPS ,officer.

Financial Advisor, he assists VC & MD in the financial

and budget matters. He is an outside employee, generally

from the AG office of the Government,

5. CA 3 Chief Auditor, he assists VC & MD in the matters of

audit. He is also from AG oflice Government.

6. CAO Chief Accounts Officer, he is helping VC & MD in the

matter of Accounts and Payments and Receipts of the

corporation.

7. Executive $ Executive Diptor (operations), he assists VC & MD in

Director all traffic matt&. He has to arrange the number of buses

(Operations) needed, augmentation, slack season and entailment of

buses me also decidedby him. All the inter - state

services must be approved by him for operation.

8. Executive 9 He assists VC & MD, in all administrative matters, i.e.,

Director (Admn) formulation of policies sanction of staff, planning of

staff, personnel and industrial relations, projects, land

acquisition etc,

9. Executive 3 E,D (Engineering), he assists the Vice-chairman and MD

Director (Engg.) in all the matters of Mechanical, stores, workshop,

central stores, regional stores etc., He also look after the

purcahse of chasis and body building.

10. Executive + He is helping VC & MD in the matters of Human

Director (HRD) Resource Development, recruitment, training, staff

retirement, etc.

1 1 . Executive There are 3 E.D's assisted by VC & MD for zonals

Director's (Zones) administrative affairs. Each E.D is administered

by 2 zones.

12. Executive 3 He assists VC & MD in matters of information

Director (IT & MS) technology, management systems relating to

mechanical, accounts, operation, stores and medical

services.

13. Secy to Board + He is next to VC & h4D and who assists him in

all the bo&d matters and public relations.

Director (Vigilance & Security) I.) He assists the Vice-Chairman and

Managing Director on vigilance and security matters. He is an IPS cadre

oficer, deputed by the govenunent.

Chief Trafflc Manager : (CTM) 9 He is placed under the Executive

Director (operation) and attends to matters connected with traf'fic wing.

Chief Commercial Manager (CCM) : 3 He is also assistant to Executive

Director (Operations) and helps in all commercial matters and also he looks

after shops in bus stations, ANL parcle, postal mail bags, canteens; weighing

machines etc.,

Chief Marketing Manager (CMM) : + He is placed under the Executive

Director (operation), He attends to all the matters of marketing issues like

stores, materials and sanction of stores items.

Chief Controller of Stores (CCOS) : 3 He is under the control of

Executive Director (Engg.) and he assists all the matters of stones

maintainances, supply of stores items, maintenance of workshops.

Chief Mechanical Engineer (CME) : 3 He is assisting the Executive

Director (Engg.) on all the matters pertaining to the mechanical wing.

Chief Mechanical Engineer (CME) (Chassis and Body) : 3 He is also

works under the control of Executive Director (Engg.) and helps in all the

matters pertaining to vehicles. He is the authority to sanction thew new

vehicles to the depots on the concurrence of ED (E).

Chief Personnel Manager (CPM) : He works under the Executive Director

(Adw.) and he attends to the works like staff sanctioning staff patterns, staff

planning, personnel and industrial relations, welfare etc.,

22. Cbief Law Oflicer (CLO) : He asists the Executive Director ( A h . ) and I

undertakes all the legal matters and cases of High Court.

23. Chief Civil Engineer (CCE) : He wodts and supervision of Executive

Director (Admn.), he attends all the matters of Civil Engineering works or

corporation, generally he is deputed employee born the Roads and Building

Department.

24, Chief Manager (CM HRD) : He works under the supervision of Executive

Director (HRD) in all the matters of human resources Recruitment, training

etc.,

25. Chief Engineer (IT & MS) : He works under the control of Executive

Director (IT & MS) and he attends the all the matters of IT services like

implementation of computer processing in all depots, moduling of all the

systems under departmental works in the corporation, industrial engineering,

data processing etc.,

26. Cbief Medical Ofncers (CMO-I), (CMO-11): He works under the Executive

Director (IT & MS), he is incharge of APSRTS hospital at Hyderabad and

also all the RTC dispensaries in the state.

REGION

REGIONAL MANAGER (RM) :

At Regional level, Regional Manager is the Chief Executive of the Region.

He is the highest authority of the entire region, under the control of Executive

Director (Zone) and directly answerable to the Vice-Chairman and Managing

Director. He is irresponsible for the district level operations, stream line the inter

division operations and close monitoring the depots. He assists Divisional

Managers, Deputy Chief Mechanical Engineer, Deputy Chief Accounts Officer,

Executive Engineer, Personnel Officer, Controller of Stores, Works Manager, Chief

Security Inspector, Medical Officer and Others. "

Deputy Chief Accounts Ofticer (DYCAO): He assists the Regional Manager in the

matters of all the payments and planning of the accounts. Ensuring receipt of h d s

in respect of earnings and other incomes from all the units of Region and proper

accounting of such receipts, he is the responsible. Besides, he assists Accounts

Officer, Assistant Manager (Finance) and others.

Accounts Offrcer (AO): He assists the Deputy Chief Accounts Officer in the

matters of accounts, payment and receipts, pay bills, pre and post audit or salary

bills etc.,

Deputy Chief Mechanical Engineer (DYCME): He is expected to assist the

Regional Manager in the matters relating to mechanical. He is responsible for proper

upkeep of all buses operating in the Region. He is assisted by mechanical foremen,

Asst. Mechanical Foremen and others.

Controller of stores (COS) : He is assists Regional Manager in the matters of

maintenance the materials of the Regional Store. He assists sales officer, purchase

officer and others.

Executive Engineer (Civil) : He assists the Regional Manager on all the matters

relating to Civil Engineering works with the help of Junior Engiieer, Assistant

Engineer and other staff. I

Senior Medical Oflieer (SMO) : He is the head of the RTC dispensary and

incharge of Medical Wing in RTC Dispensary. He assists with the Junior Medical

Officer and others.

Chief Security I~spector : (CSI) : He assists the Regional Manager on all the

matters relating to security and vigilance with the help of Security Inspector,

Assistant Security Inspector, Head guard and guards.

Personnel Oflicer (PO) : He is under the control Regional Manager, looks after the

personnel, industrial relation, welfare and staff grievances of the region. His duties

also include recruitment, promotion, and placement of all the Regional Category

Employees.

Works Manager (WM) : He is under the control of Regional Manager in the

maintenance of workshops. He is head of the workshops with the help of Assistant

Works Manager and others.

DMSION

Divisional Manager (DVM) : Divisional Manager is the head of the division, under

the control of Regional Manager (RM). He is responsible for the operational and

maintenance aspects of the depots in his jurisdiction (Division), with the help of all

the Depot Managers in the Division. Besides he assists Chief Inspector (CI) (ENQ),

Assistant Manager (Personnel), Assistant Mechanical Foremen, Senior Traffic

Inspector (Special Checking), Senior Clerk, Junior Clerk and others.

DEPOT

In the existing Regional setup in the four tier system, the place, though not

least, is being occupied by the depots. The entire revenue of the APSRTC comes

born the depots. The total number of depots in APSRTC were 212 by the end of

February' 2006. The total number of buses run fiom all the above depots were

19,319 by the end of February' 2006. The credit goes to the depot system because

the entire APSRTC depends upon the revenue of the depots.

Each Depot is headed by Depot Manager (DM). Broadly, there are six wings

work under him. They are :

(a) Personnel / Administration wing

(b) Accounts wing

(c) Traffic / operational wing

(d) Mechanical wing .

(e) Security wing and

(f) Stores wing

(a) Personnel I Administration wing : This section is headed by Assistant

Manager (P) or Ofice Superintendent (P): He is assisted by Deputy Superintendent,

Senior Assistant, Junior Assistant, this section deals with the matters of Personnel I

Administration I establishments

(b) Accounts wing : Head of this section is Accountant (or) Superintendent

(Accounts). He looks after matters relating to finance, being assisted by Deputy

Superintendent (or) Senior Accountant, Senior Clerk, Junior Clerk.

(c) Operational I Traffic wing : Chief Inspector (T) or (Am) (T) head of this

wing. Under the control of Depot Manager looks after the entire wing with the

assistance of T r a l c Inspectors I, I1 (I1 - 11), Controllers, Conductors, Drivers and

Booking Clerks. The Chief Inspector maintain the traffic using smoothly.

(d) Mechanical or Maintenance wing : The incharge of this department is

Mechanical Foreman (MF), under the control of Depot Manager, he looks afler the

entire mechanical wing with the help of Assistant Mechanical Foreman, Mechanical

chargeman, Mechanics, Cleaners and others.

(e) Security wing : Sub-Inspector is the incharge of security wing under the

control of DM. He assistant Assistant Sub Inspector, Head guard and Security

guards in the matters depots security with all respect.

(f) Stores wing : Senior stores supervisor is the head of the stores using under

the control of DM, with the help of stores supervisor, assistant depot clerks and

others, he looks after the all the matters of maintenance of materials of the store.

DIFFERENT TYPES BUS OPERATIONS :

The corporation is operating variety types of buses to cater the needs of

people of different sections of society, viz., Air Conditioned (AC) sleeper coach

(Mayurr), AC Volvo coaches (Garuda), Climatizer, Hitech Deluxe, Luxury,

Express, Metro express, Veera express, Grammani, Ordinary and City Ordinary.

The corporation has introduced 12 two-tire AC sleeper coaches called 'Mayuri'

during the year 1998-99 which has been first of its kind in passenger transportation

in the country. These buses are under operation on important long distance routes,

viz., Hyderabad-Bangalore, Hyderabad-Shiridi.

In order to meet the competitive environnlent and provide more comforts to

passengers with AC and comfortable seating, the corporation has so far introduced

23 climatizers on important routes like Hyderabad-Bangalore, Hyderabad-

Vijayawada, Hyderabad-Nandyal and Hyderabad-Shiridi. Special features of these

buses are that the temperature inside the bus is modulated against the vagaries of the

atmospheric temperature both in the summer and winter. Whereas in the Hi-Tech

Deluxe coaches, the features like ergonomically designed comfortable push back

seats, interior carpet padding, ceiling fabric to avoid radiation and dust, audio and

video systems, reading lights, coffee making machines etc. These buses run between

Hyderabad-Vijayawada, Mumbai, Bangalore, Karimnagar, Kadapa, Kurnool,

Tirupati and ~utta~arty-chemai5.

On the eve of 32nd National Games held during in the month of November

2002 in Hyderabad, the corporation has introduced 55 Veera luxury coaches in twin

cities (Hyderabad and Secunderabad) with a view to provide comfort travel to city

commuters. The Grammani services have been introduced on October l* 1993 with

wide doors and separable luggage space at the rear to help the small farmer to carry

their vegetables, milk, etc. to the nearest markets from the villages. The main

purpose of these buses is to connect urban areas with rural interiors.

The concept of Rythu Bazaars in townslcitiedlmetros in AP has been 4

introduced on January 26' 1999 to facilitate the farmers to sell their vegetables and

fruits directly to the consumer by eliminating middlemen. The corporation is

operating nearly 526 buses connecting 1800 villages to 87 Rythu Bazaars in various

places to transport their vegetables, h i t s and other farm produce6. Metro-Liner is

introduced in twin cities to discourage personalized transport with a view to

conserve imported petroleum products, reduce atmospheric pollution and congestion

on city roads.

ORGANIZATION STRATEGIES :

APSRTC is committed to provide consistently high quality of service with

continuous improvement in bus operation through a process of teamwork for the

utmost satisfaction of the passengers and to attain a position of prominence in the

bus transport sector. The following are the different strategies of the corporation to

achieve the targeted objectives and goals.

Operations: which include

I Periodic drive on passenger related areas;

Strict implementation of 'Hail and Board' system;

Close monitoring of schedules to eliminate redundant operation;

Redeployment of serviceltrips from low density to high density routes;

Fixation of crew and vehicles to routes to build rapport with customers and

Increase in number of single crew schedules and ticket issuing machines to

reduce personnel costs.

Marketing: which includes

@ Strengthening of marketing department;

r Hiring of character services made more attractive;

I Implementation of several passenger friendly schemes;

Launching of major advertising campaign;

Implementation of measures to improve luggage revenue;

Establishing of customer information call centre and good-will centre;

Introduction of ticket reservation network, return journey ticket, telephone

reservation facility and delivery of reservation tickets at doorsteps;

Implementation of various schemes like Concessional Annual Travel (CAT)

card and

The Depot Manager (DM) conducting 'Dial Your DM' programmes to build

up the image of the APSRTC.

Incentive Schemes: As a measure to improve the productivity, incentive schemes

were designed and implemented in all its workshops, tyre-trading shops, printing

press and body building works to have better motivation to the workmen and

improved savings to the organisation. The schemes me linked with improvement of

productivity.

Research and Development wing: It has come into existence in 1997 and is created

to act as an effective change agent to provide innovative ideas, which could help

corporation to improve its overall profitability by taking up issues related to

performance, productivity., etc. The following are the enduring principles of the

corporation:

a To explore the technological, financial and managerial opportunities and

render the business cost effective at all the times;

To provide efficient, effective and ethical management of the business;

To assist the state administration in attaining good governance;

To focus on senice conditions and welfare of the employees and their

facilities consistent with their worth of the corporation;

Regularly and constantly improve the capabilities of employees for higher

productivity and

To consciously confirm to the policy guidelines of the state in its business

operations.

Concessions: The following are the concessions and free travel facilities extended

to various sections of society.

I Free bus pass to the freedom fighters of AP who crossed 65 years of age and

receiving pension either from the Government of AP or GOI;

Free bus pass to girl students studying upto class tenth to commute fiom the

residence to school and back;

I Free bus pass to all the students below 12 years of age to commute from the

residence to school and back;

Free bus travel facility to the accredited journalists within twin cities and

Rangareddy District and for other journalists based on eligibility at 213

concessions on normal fare;

Free bus pass to the physically handicapped, mentally retarded, blind, deaf

and dumb persons in towns/cities;

Monthly season tickets are issued to the regular commuters like offce goers,

students, businessmen etc.;

Special general bus tickets in townslcities to the students who are studying

job oriented courses and

Slab rated genml bus ticket passes are issued in 3 categories, viz., ordinary,

metro-express and metro-liner validating the holders of the passes to p a f o m

unrestricted journey by the service applicable for which it is valid.

Passenger Friendly Schemes: The following are the important schemes introduced

by the corporation.

TREAT (Travel Regularly and Earn an Additional (Free) Trip) Scheme: This

scheme was launched on May 20, 1996 or route Hyderabad-Vijayawada for

the benefit of those who are regularlfiequent travelers in between Hyderabad

and Vijayawada. On becoming a member of the scheme and after performing

5 fare paid single trips in a span of 60 days, an additional single trip, i.e., the

6' one will be provided absolutely free of charge. In response to the public

demand, the TREAT scheme has also been extended on Hyderabad-

Bangalore route fiom March 200 1 ;

JET (Jubile Expressmi-Tech Tickets) Scheme: This scheme was launched on

the eve of Golden Jubilee Celebrations of Indian Independence, i.e., on 15'"

August 1997. These tickets can be comfortably availed to suit an individual's

travel options with particular reference to pilgrimage, sight seeing or need

based places of interest. The ticket holders will have an added facility of

priority in reservation and any numbers of break journeys with in stipulated 7

days period;

CAT card: It was launched on January 1" 2000 and the tariff of the card is

Rs.1501- with the validity period one year fiom the date of issue. The card

holder will get concession of 10% on fare and an additional compensation of

Rs. 1 'lakh in case of death while travelling in APSRTC buses apart from the

statutory compensation;

8 Return Journey Ticket. Scheme: This is available with 10% concession on

return journey fare on routes like - Hyderabad-Vijayawada, Hyderabad-

Bangalore, Hydmbad-Tirupati, Hyderabad-Adilabad, Tirupati-Vijayawada,

GIFT (Gain instant Free Ticket) Scheme: was introduced on route

Hyderabad-Vijayawada in 2001. Under this scheme a passenger will be

selected through lucky dip conducted at terminal points. The lucky passenger

will be allowed to travel free with a gift voucher, subject to the occupancy

exceeding 70% and

Monthly Season Tickets: Under this scheme a commuter can pay fare for 20

days and travel for entire month. These tickets are made available on all days

through out the month at the depots and valid for 30 days from the date of

purchase,

Commercial activity: Buses and bus stations constitute the prime source of

commercial revenue. . The major part of this revenue is fiom license fees fiom

owners of the 2,900 stalls, shops, canteens etc. at APSRTC's 415 bus stations.

Advertisements on buses and at bus stations are another source of revenue as well as

closed circuit television in bus stations. There is an exclusive agency for

transportation of parcels on APSRTC buses. Postal mailbags are also carried on the

buses adding more revenue.

PHYSICAL GROWTH :

The APSRTC has been showing good physical performance over the decades

and its fleet utilization with 99.32 per cent is highest in the country. Table-3.3

presents the detailed physical performance of the APSRTC as on February 2006.

The vehicle utilization (kilometres operated bus per day) is 66.71 lakhs, which is

also very high when compared to others in the country. The break down rate per

10,000 krns of operations is reduced from 0.36 in 1996-97 to 0.13 as on February

2006 (Table-3.3). The accident rate per one lakh kms is also reduced from 0.19 to

0.1 1 as on January 2006, which is lowest in the country (all India average is 0.39).

It has been showing consistent improvement in the resource utilization. The fuel

efficiency expressed in terms of kilometer per liter (kmpl) has steadily incremed

from 4.85 in 1986-87 to 5.29 as on ~ebruary 2006.

Therefore, the corporation has been maintaining a very high level

performance in this parameter compared to the all India average of 4.41 kmpl and

has been continuously bagging fuel efficiency awards instituted by conservation

research association of the Ministry of Petroleum for the last 14 years. It has shown

consistent improvement in the productivity of manpower. The staff per bus ratio,

i.e., number of men employed per bus, which was 10.01 in 1980-81 reduced to 7.56

in 1996-97 and W e r reduced to 6.33 as on February 2006. The staff productivity

expressed in terms of krns per day has been increased from 33 in 1990-91 to 53 by

2006. The gross earnings per km for 2005-06 in paise is 1544 and cost per km for

the year 2005-06 in paise is 1562 (Table-3.3). Table-3.4 also provides the trends of

performance in APSRTC during 1993-94 to 2005-06.

FINANCIAL GROWTH

The Road Transport Corporation Act 1950, a central law, heralded the setting

up of public sector road transport corporations in several states in India. One of the

main objectives of these corporations was providing, securing and promoting an

efficient, adequate, economical and properly coordinated system of road transport

services. The following points are related to their monopoly over road transport.

A monopoly is able to ensure the provision of ancillary amenities in the form

of bus stations, bus sheds;

A monopoly has the advantage of operating services on the basis of overall

economic viability and of spreading the cost of providing services evenly

among different users of the system;

A monopoly is able to maintain affordable bus fares and

Only a government monopoly is able to cross-subsidize between profitable

and unprofitable routes.'

Table-3.3: Physical Performance of APSRTC at a Glance [As on Feb'ruary 20061

Establishment As Department of Nizam State Railway

As Department 6f Hyderabad State Govt.

AS APSRTC

June 1932

01-1 1-1951

11-01-1958

1999

2 7

166

3.93

19,319*

1,17,192

201.27 (Rs. Crs.)

212

42

23

6

523

766

1880

1107.60

68.53

1 19.78**

7795* *

24,336 b

Entered Guinness Book of World Recordo for owning largest Fleet of Buses.

Size at Inception

Present Size

Number of Buses

Number of Employees

Capital Investment, (Rs in Lakhs)

Number of Vehicles (As on 3 1-5-2006)

Number of Employees (As on 3 1-5-2006)

Capital Contribution fiom Governments (State & Central)

Number of Depots

Number of Divisions

Number of Regions

Number of Zones

Number of Bus Stations

Total Number of Bus Stations including Mandal Bus Stations (523 + 243). Number of Bus Shelters (including Janmabhoomi shelters)

Average Daily Earnings (Rs. in Lakhs)

Average Daily Volume of Operation (Kms in Lakhs) Number of Passengers Transportedday (Lakhs) (April 2006)

Total Number of Routes (March 2006)

Villages connected

Note: * including hired buses, * * provisional

Source: Office of APSRTC Managing Director, Hyderabad.

performance up to May 2006

Total Buses (17715 + 1604 =

19319)

Villages could not be connected

Number of Depots Computerized

Average daily earnings (Rs. in lakhs)

Average daily volume of operation (Krns in lakhs)

Fleet Utilization (%)

Crew Utilization (Kms)

Employees Productivity (kms)

Punctuality (%) (April 2006)

Fuel Eficiency (kms5trs)

Engine oil Efficiency (kms ILtrs)

Average Tyre life (kms in Lakhs)

Rate of Breakdowns per 10,000 kms

Rate of Accidents per 1 lab kms (up to April 2006).

Staff per bus (on held)

Gross earnings per krn for 2005-06 (in paise)

Cost per krn for the year 2005-06 (in paise)

Profitfloss for the year 2005-06 (including Hired Buses in Rs. Crores)

APSRTC Buses

Hired Buses

2938

2 12 (All Depots)

1043.24

67.76

99.32

158

55

93.72

5.29

441 7

1.80

0.13

0.13

6.37

1544**

1562 **

-42,78 **

17715

1604

Tablt-3,4: Performance Trends of APSRTC - During 1993.94 to 280586

$1 No,

I ,

2,

3,

5.

6,

'7,

9,

10.

11,

12

i

Pm'Mkr

n)Dtpds

hmputetised --

Regi011~

Zones

a'8ur Srimr

b)&a Shch

h.ofRoutt~

Fled

KilornW

Traffic Mi*

EPK

Veb. utilMO1l

OR

FPB

13.Cglcellations

No,

1993. 94

186

1996 9!

193

No. 118 ID 149 111 1% 209

NO. $10 23 23 23

211

23

7 1

I849

8631

19084

21741

1448.56

1124

311

61

3541

3.13

No,

No.

NO.

NO,

RslCrs.

~ J C ~ S .

h

h,

%

Rs.

%

1995. 96

194

212

_I----

23

743

I875

8542

19438

208.66

2388.44

1145

297

61

3399

7.86

380

1279

7030

15494

166.32

1208-64

727

299

2174

3,68

1996. 91

1%

212

23

756

I875

1117

19\02

223,58

2667Sl

1193

320

63

3815

1403

419

1352

7408

15655

170,40

131521

772

302

76

2331

4,44

1997 1

199

212

437

1363

1670

16248

176,61

152961

8 6

306

74

2647

401

1998 99

204

212

459

1378

8074

16895

182.41

1655.62

903

303

70

2751

421

1999- 00

209

212

23

469

1563

8442

17900

195.g~

1#61,08

950

311

69

2959

3.13

711

8192

19108

226.65

2786A4

129

326

60

4004

I05

2000. 01

211

N O , - 6 6 6 6 6 6 6 6 6 6 6 6

485

Ill9

1558

18526

204,8j

1981.51

967

310

61

29%

391

763'

18fi'1880

8132

1%09

232A

2949.50

1269

332

62

4m

2.01

2001. M

212

688

1801

8613

19021

215.16

2243,65

1043

317

61

3303

2.34

761

1880

7848

19364

178,61

235293

1317

332

65

4379

3 4

1002 03

212

2003. M

212

2004 W

212

v

w ')w' 212

Som: Compiled from the Annul Administdon Reports of APSRTC, Govt of Andhra PradeJ4 Hyderabad,

199$

%,34

501

11%30

I78

120

38

379

1105

1251,15

152

149

625

L

SL No,

14.

15.

16,

17,

18'

20,

2Ia

22.

24,

25,

1994-

%,55

4.98

I 2 I

778

122

YI ~

329

1181

1367.55

803

795

1270

1999-

9847

507

I31540

707

130

44

36

1520

233327

I084

1155

.151,85

Fleet utiI'dOII

HSDKMPL

Employees

Er Crew UtiIintioi

194z'ni0 -

Buses introduced for AugmedNew Savices

Buses allottedfor rcpi-

Gross income

23,GrossEPK

CPK

a)Rofiuloss

%

Kmsl

Ltr

No,

M

Kms.

h

Nos,

Nos,

RsJCa,

Ps,

Ps,

Rs.lCts,

2000.

99.00

508

I28796

6+9!)

131

44

109

1581

254021

1166

1263

-20995

199& h n a U ~ N 9 5 % n r r I o l s m M o s k

98,16

5+05

I31474

720

127

43 - - -

500 I

1282

2053.00

1002

1050

.9863

1995

9 7 3

498

121432

7S!

124

40

617

1144

158495

897

872

45,07

2001.

9487

507

l264ll

63

127

41

21

1283

257565

1234

1365

-27246

1%

9768

5.02

12685)

7S6

123

40

479

2005

1735,54

951

948

632 L

199%

9828

505

- -311C13C- - - - -C- - - - . . _ . _

130285

714

125

41

805

1595

- - - - _ I _ - - . - -

1941,13

991

1016

4 9 3

2002

9924

524

la58

6 s

139

47

0

668

287998

1288

1369

-181.47

tW

9928

5.37

119219

6#53

146

$0

-

14

1333

3021,19

1333

13%

442,04

2M

99,42

529

III(W

6Jl

149

5l

238

1732

3215,80

1383

1480

-224,84

w 06w 99S4

526

1II

6J6

151

il

- - --

153

-

293

239646

1512

1525

-19,44 h

The other underlying principle for the public provision of bus transport was

the need to maintain safety, environmenk quality, affordability and public service.

It was also felt that unrestricted participation of transport providers might lead to

indisciplined and uncoordinated bus operations7. .

In fact, coming to the financial performance, the paid up equity capital of

corporation is Rs.20,127 lakhs, of which the share of the Government of AP is about

70%, while the rest is held by the GOI. There has been no capital contribution by

Government o f ' Andhra Pradesh and GO1 to corporation since 1988. The

contribution from workers funds in this corporation is said to be Rs.27,100 lakhs

(Rs. 9,700 lakhs fiom the Benefit Fund and Rs. 17,400 lakhs fiom Gratuity) which is

higher than that of the State and Central ~overnments*. Over the years, most of the

cost of fleet expansion and development of infrastructure facilities at bus stations

have been borne by corporation from its own revenues. Further, it has been

shouldering the burden of a number of concessions to various groups of citizens as

announced by Government of AP fiom time to time.

The APSRTC is slated for privatizationlreform in Phase-I1 of the AP

Economic Restructuring Project (APERP) during the period 2005-07, which will

cover about 97 companies, corporations and cooperatives. The government decided

to downsizing up to 30% of the staff but the Adam Smith Institute of UK has

recommended a 50% reduction of the staff. The number of employees estimated to

lose jobs during 2005-07 is estimated to be about 32,346. Hence, APSRTC has

regularly been in the news ever since the trade unions went on a massive strike for

24 days during October-November 200 1 on a set of demandsg.

REVENUE RECEIPTS

The liberalization policies of the State and Central governments were pursued

most vigorously during period from 1990-9 1 to 200 1-02. The corporation incurd

losses in the first three years, i,e., 1990-91 to 1992-93; subsequently made profits

and then continuously ran into losses from 1996-97 onwards. Table-3.5 analyzes the

revenue, expenditure, and profit and losses of the corporation. The loss of Rs. 1,188

lakhs in 1990-91 is lower than the loss in the previous year of Rs.2,063 lakhs. The

cyclone in May 1990 and several agitations relating to the Mandal Commission

recommendations are known to have adversely affected the operations of

c~r~ora t ion '~ .

In spite of such disruptions, traffic revenue increased due to the fare revision

with effect from 27 May 1990 and an additional 'gulf surcharge' with effect h m

October 1990. The increase in losses to Rs.3,113 lakhs in the subsequent year was

attributed to the 'steep hike in the costs of lubricants, tyres, springs, spares, hike in

DA to the employees and to the fact that the entire capital investment, i.e.,

procurement of buses, construction of various passenger amenities, is met by the

internal resources generated and borrowings in the total absence of capital

contribution from both State and Central

Thus, the reduction in losses during 1992-93 was attributed to various cost

control measures and the fare hike on January 4" 1993. Ever since, corporation

started making profits due to an improvement in operational efficiency and stricter

cost control until 1995-96; when it made a profit of Rs4,507 lakhs - the highest for

the entire decade of the 90s. Later, it has been a different story. After 1995-96, the

growth rate of revenue receipts has been consistently less than that of revenue

expenditure with the lowest ever rate in 2001-0212.

84

TabMJ: Revenue, Expenditure, Profihar and MVT of APSRTC

Note: T& m N i n c l h tmI8c revenue (fmm both APSRTC and Hired Buses) and mue h a o h sow, such am dc. hlW - Mob Vehicle Tax

L

1990.91

1991-92

1992.93

1993-94

1994.95

195.%

199697

1997.98

1998.9

MW

2WMII

20014 r

Sourm Compiled horn the Annul Administration Reports of APSRTC, Govt of Andha Pndnb, Hydcnbd.

4

MVTuW oftotal T*fit

Revenue

9.9

9.0

8.2

10.4

9.7

12.1

15.3

15.1

I 5 1

15.1

15.1

14,l

Total Revenue (Rs,

A ~ o u u t (hhlbs)

78,102

91,330

1,05,012

1,25,115

136,755

1,58,495

1,73,553

1,94,113

9C9)5,2%

2 3 3 %

Mml

117,565

WdPer

0.55

0.53

0,52

0.76

* 0.75

1.05

1.39

1.44

IJS

1.57

1.69

1.62

bb) Growth

Rate

16,9

15.0

19.1

9.3

15.9

9,s

11.8

5.8

13.7

8.9

1.4

Total Expenditure

P t Q f l h g hwI)

.1,188

.3,113

*2,654

625

1,270

4,507

-3

-4,972

m9,W

-15,184

-20,990

-27,207

(Rs, Amount (Rahkhs)

79,291 ,

94,443

1,07,666

1,24,489

1,35,485

1,53,988

1,73$6

1,99,08Q

2 5 ,

2,48,510

2,75011

2,84,772

MvTPa'i (Rr hhs)

7,506

8,022

8J94

12,625

12,835

18,513

25,345

28,188

29,744

33,802

36,870

33/60

MVT Paid Per

h r q l e r )

0,22

0.22

0.22

0.3 1

0,29 I

0.42

' 0.55

0+6d

OI7

0,91

oofl

lahi) - Growth

Rate

-

19.1

14.0

15.6

8.8

13.7

127

14.7

8.1

15.5

103

3.5

MVT hi Per Bus (~lr

hkh)

0.55

0.55

0.55

0.83

, 0.83

1.17

1.54

1.64

1.64

1.82

1.95

1.75

The gap between receipts and expenditure has been continuously widening,

resulting in mounting losses. However, the amount paid to Government of AP as

MVT has been much higher than the volume of losses suffered by APSRTC.'

Figure-3.2 shows the difference between profit-loss and MV Tax. It is estimated

that there is a fall of Rs. 10,279 lakhs in revenue receipts due to the strike in October-

November 2001 and of Rs.1,865 lakhs due to a decline in the occupancy ratio. There

is an addition of Rs.10,000 lakhs towards reimbursement of 50% of the value of

concessions by Government of Andhra pradeshI3.

TARIFF HIKE AND OCCUPANCY RATIO :

An analysis of the passenger fare hike shows that it was raised six times in

seven years in the second half of the 90s. Table-3.6 presents the clear picture of

some operational characteristics and fare hike in different stages. Repeated hikes in

the fares have been one of the characteristics of the government's approach towards

corporation from 1995-96 onwards. Passenger fares in the State (AP) are considered

to be very high compared to other States in India. A question that arises is - could

this fare hike be part of a strategy to undermine APSRTC? After all, if the

Govemment of AP wanted to privatize organization, it could have an interest in

showing that it is a loss-making organization. It is likely that in some years fare

hikes have helped to overcome financial difficulties rather than increasing them. In

1995-96, there was a fall in the occupancy ratio and only a marginal increase in the

number of fleets and passengers carried. The high profits could be achieved

probably because of the steep rise in passenger fares that came into effect from

August 1995 and in the same, day when the new system of 13% MVT on traffic

revenue also came into effect.

Fig, 3 3 : Growth in MVT and Rising losses in APgRTC r - - - - - - - " I I I

Growth in MVT and Rising Losses in APSRTC -1 I

I I i 50,OOOi

j 40,000 - I

Years

87

TabIe3.6: Operational Characteristics and Pare Hike

Note: I. Occupancy ratio is defned s be ration of the actual revenue earned $ a bus to the gross eming capacity of the ba, and accupncy 1 relates only to Mc wings,

2. ' bigs p km are on b traffic revenue* 3. BSR is Bus- Staff Ratio, iq the number of Mper k.

Some bpiY hm the Annual Administration Reports of APSRTC, G o t of Andhra Mesh, Hyderabd

& r n i n ~ (Ik per KK)*

5.60

5.19

638

728

7,13

868

909

9S6

969

I043

11.24

l I45

I

Yerr

1990-91

1991.92

1992.93 I

1993-94

1994.95

19959%

1996.97

1997-98

1998-99

1999.00

I W I

2001.02

Cosb (as, Pa Ka)

5 8

626

6 Y

7,49

I95

b72

9,Sl

10.17

10.50

llS5

12,51

H.65 -

BrtiSbff btio@R)

7.%

793

7.88

778

7.78

7,53

7,56

734

720

707

699

6,79

Bm Fleet Farefkt EffM fro1

t@2?,1990

an. 4', 1 s

AU@, 1995

J U I ~ ~ ~ ' , 1996

Sept 14', 1997

Nov. 1 I*, 1999

cc~.6 ' ,2M

Feb. I:200f

Ormpalcy Ratio(%)

73.31

72.00

7279

72,00

76.00

73.90

70,17

69.00 ,

68,OO

67.00

61.00

61.00

(Including

~n&r

13,669

14,603

15,101

15,235

15,455

15,790

16,488

17,233

18,122

18,562

11,946

19J49

Puseyers C a d H i d )

cnnti ~ l r tc

6.83

3,41

0,89

1,44

2.17

4,42

4.52

5,16

2.43

207

1,60

(in,

Nmkr

33,884

35,709

37,695

N J f l

43,583

44,144

45,784

46,914

45,142

43,627

40,374

37,447

Irkhs)

cmd btt

5.39

5,56

6,86

820

1.29

372

247

-3.78

-3,36

-746

-725

88

Tablt-l7: Componentt of Revenue Expenditure (Percentage Sh~~re)

: kbhhmat hhdt stom, luhts, wd shops d & bh, Ohm' includes in^ on hings, hkrd on qitd and mt on Itase,

Sources: kp iY haa the Anad Administmtion Rqm of AFSRTC, Goa of Andha hkb, Hydmbd

However, the 1999 situation was different because the steep hike in this year

seems to have had a detrimental effect on the financial position of the corporation.

There was opposition from trade unions as well as some sections within the

management against this fare hike because of the already declining. Or it was feared

that APSRTC could lose passengers following such hikes. Thus, the government

went ahead with steep fwe hikes, apparently placing organisation in a more difficult

situation. So some studies exposed the corporation has lost about 5 lakh passengers

per day in Hyderabad city due to the 1999 tariff hike. This segment of passengers

has moved towards two-and-three wheelers. Likewise, in rural sector the corporation

had lost about 26 lakh passengers in every day.

Repeatedly fares were again hiked in 2000 and in February 2003, increasing

the losses of organization. The tariff is especially high for short distances. What

seems to have hit APSRTC hard, apart from the high rate of MVT, is the fewer

number of passengers carried by its buses despite a marginal rise in the number of

buses since 1998-99. After reaching a high of 76.0 per cent in 1995-96, the

occupancy ratio amounts to a reduction of about Rs.4,000 lakhs in the revenue. It

may also be noted that the bus-staff ratio has been declining continuously, which

means that there are less number of employees per bus in APSRTC in 200 1-02 than

that in 1990-9 1 .

REVENUE EXPENDITURE :

The personnel cost that includes salaries, wages etc. forms the most important

component of the revenue expenditure. By and large it remained stable at about 38

to 41 per cent. Table-3.7 presents the statistics of personnel cost and other

parameters. In fact, the personnel cost has slightly declined in the last few years.

This was achieved, among other things, via several cost-cutting exercises vis-A-vis

employees, which is reflected in the gad& decline of the bus-staff ratio over yoars

(Table-3.6). However, the much heard quarrel that APSRTC is incurring huge

expenses on salaries and is therefore running into losses. or that the wages cannot be

revised becauk of already high personnel costs do not hold".

The share of the establishment cost which includes stores, lubricants,

workshops and tyres and tubes has considerably declined over the years. This

appears to be a positive sign at a time when the number of buses operated has not

come down. There has been a substantial increase in the expenditure on power,

which is the amount spent mainly on diesel. The level of this expenditure is beyond

the control of APSRTC. Thus, the State Government could consider reducing the

rate of sales tax on diesel for the corporation's buses if it is seriously interested in

making the corporation a self-sustaining organization. Another significant jump in

costs is seen in the charges paid to hired buses. The rise in expenditure on personnel

in 2001-02 is due to the revision of pay sales and dearness allowance. This increase

could have been sharper, but for the reduction in BSR and the non-payment of

salaries during the 24-day strike period. The boiowings of APSRTC have enlarged

fiom Rs.58,283 lakhs in March 2001 to Rs.75,407 lakhs in March 2002".

CONCESSIONS TO DIFFERENT SECTIONS :

The Government of Andhra Pradesh announces concessions to different

groups of people (various types of concessions already discussed in this chapter).

Whereas the private operators do not entertain any such concessions. Losses are

also accrued because the govemmenVruling party hires APSRTC buses for activities

such as rythu bazaars, janmbhomt programme, political rallies, ctc. The b c i l

liability borne by the corporation due to such concessions and activities is estimated

at Rs.26,000 lakhs in 2001-02, which in effect is a b s for the corporationi6. The

Unions have argued that it is the responsibility of the government to reimburse such

costs to the organization. The quantum dues of APSRTC are shown in Table-3.8.

Another category of losses sustained by the APSRTC is related to the damage

and cancellation of buses during agitations, bandhs and other social protests -

generally in response to particular government policies. As ill luck would have it, it

has become a practice in India to target public property (especially buses) on such

occasions. During the 1 0-year period (1 990-9 1 to 2000-0 l), the corporation incurred

a property loss on account of burning of buses (in 893 cases) and partidfull

destruction of buses (in 4,443 cases). The loss was due to cancellation and low

capacity running of buses during those crucial situations".

Table-3.8: Dues to APSRTC from the State Government (Rs. Lakhs)

Sources: Compiled fiom the Annual Administration Reports of APSRTC, Govt. of Andhra Pradesh, Hyderabad.

AWARDS BAGGED BY APSRTC :

In the process of service to the public, APSRTC was honoured with

prestigious 'Road Safety award' by UK based 'Chartered Institute of Transport' and

for many consecutive years bagged 'Productivity and Fuel Efficiency Award' from

Govt. of India. Tables-3.9 & 3.10 provide detailed information about awards, i.e.,

state, national & international level besides region-wise awards. Andhra Pradesh

State Road Transport Corporation has been leading by example. It has a number of

firsts to its credit in India:

First to nationalize passenger road transport services in the country in 1932.

8 First to introduce long distance night express services.

8 First to introduce A/C sleeper coach, Hi-Tech, Metro Liner, Metro Express

and Inter-City services.

I First to introduce Depot computerization in 1986.

First to appoint Safety Commissioner for improving the safety of the

passengers.

I All the 2 12 Depots in the state qre computerized.

I Reservation of tickets on telephone and door delivery of tickets,

93

Table-3.9: Awards bagged by APSRTC

Source: Office of APSRTC Managing Director, Hyderabad.

International level

APSRTC enters the Euinness Book of World Records on 3 1 '' October 1999.

The Chartered Institute of Transport with its Head Quarters in Great Britain adjudged APSRTC as the safest RTC and awarded 'Road Safety Award' for 1996-97.

State level

APSRTC has received the Rolling Trophy from the Federation of AP Chambers of Commerce and Industries for the year 1983-84 for integral development,

. J

National level

APSRTC has received the Petroleum Conservation Research Association awards for highest fuel efficiency for 1995-96,1996-97,1997-98 and 1998-99. Also runner up for highest KMPL for the year 1 999-2000,

APSRTC has received the 'May Day Award' for the best management with outseding contribution towards Harmonious Industrial Relations and Labour Welfare for the years 1997,1998 and 1999.

APSRTC has received H. N. Thadani Award from Indian Institute of Industrial Engineering (IIIE) for the year 1992-93.

APSRTC has bagged awards for the best performance in three categories at the 4 1 " annual conference of the Association of State Road Transport Undertakings (ASRTUs) in New Delhi on July 7h 2006.

94

Table-3.10: Region-wise Awards

Source: Offife of APSRTC ~ a n a ~ i n ~ ~ u e c t o r , Hyderabad.

k-

Hyderabad City Region

Vijayawada City Region

Visakhapatnam City Region

Tirupati-Tirumala Region

r)

Certificate of Merit Award for the year 1990-91.

Second best productivity performance award for the year 1996- 1997.

Hyderabad city region has received fuel efficiency trophy for the achievement of maximum improvement in KMPL for city sewice for the year 1998-99.

Certificate of Merit Award for the year 1995-96 in the category of Road Transport (Passenger) city category.

National Productivity Council (NPC) Award presented for APSRTC on Nov. 26,1997 in New Delhi for the second best performance by Vijayawada and Vsakhapatnam services.

Certificate of Merit Award for the year 1995-96 and 1996-97 in the category of Road Transport (Passenger) city category.

NPC Award presented to APSRTC on Nov. 26, 1997 in New Delhi for the second best performance by Vijayawada and Vsakhapatnam services.

8 Has received fuel efficiency award for highest KMPL for city category for the years 1998-99 and 1999-2000 and also maximum improvement in KMPL in city category for the year 1999100.

Certificate of Merit Award for the year 1996-97 in the category of Road Transport (Passenger) hill category.

.

FROM LOSSES TO PROFITS :

AAer more than a decade of loss-making history, the Andhra Pradesh State

Road Transport Corporation (APSRTC) has finally made a turnaround by

registering a healthy profit of Rs.140 crore during the first quarter of fiscal year

(2006). The loss for the first quarter was Rs7 crores in 1995-96, the highest in any

previous year, Rs.3 1 crore in 2004-05 and Rs.11 crores in 2005-06. The reduction of

loss during the last two years was attributed to the assistance received fkom the

Government and improvement in efficiency.

Complimenting the corporation for the "exemplary, envious and worthy"

performance, Chief Minister Y. S. Rajasekhara Reddy lauded the employees for

their dedicated service.

The Occupancy Ratio (OR) had looked up during the current year due to

which RTC could earn additional revenue of Rs.180 crore that too without a fare

increase. But it was neutralised by the diesel price hike. On the competition from

private operators offering lower fare on AC buses, particularly to Hyderabad, that it

was only during offseason, When the demand was high, they were charging more. In

spite of the private operators offering free dinner, the RTC buses were running at

about 80 per cent of OR which testified to the strong passenger loyalty to the RTC.

All the RTC bus depots in Kadapa district were running in profits and 45 new

buses were allotted to the district. Twelve new buses were received so far and

33 more would be sent to depots. Rural bus services would be improved by

introducing 'Palle Velugu' buses.

APSRTC Kurnool depot has lifted the hopes of the organisation by making

reasonable profits during the'current financial year. The depot was one of the four in

the district-segment in the State with a profit of Rs. 1.09 crores in nine months. The

depot achieved 72% occupancy ratio as against the district average of 62%. The

depot has three most profitable long-distance routes when the OR was above 80%.

The occupancy ratio on Bangalore route was almost 100% and on some days it was

around 110%. The Chennai route had 84% and Vijayawada 80%. Even the OR of

rural routes was around 68%. Depot Manager said the depot was making profits

consistently in h e last three years but this year it turned around in a big way. The

depot earned revenue of Rs.16.94 crores so far this year. The depot achieved this

despite the financial burden to the tune of Rs.1 crore on account of escalation in the

prices of diesel.

IIM-B INTERIM REPORT ON APSRTC :

The Indian Institute of Management, Bangalore (IIM-B), which conducted a

study of the Andhra Pradesh State Road Transport Corporation (APSRTC) to

pinpoint the causes of losses studied in depth various parameters and style of

functioning of the depot. The Chief Minister, Dr Y.S. Rajasekhara Reddy asked the

expert team from the IIM-B, to take up an inndepth study on the fknctioning of the

Andhra Pradesh State Road Transport Corporation (APSRTC) and submit an interim

report. The expert team should suggest measures for speedy financial revival of the

APSR TC and lay stress on cutting losses. The IIM Banglore team headed by Dr

Ravi Kumar, presented its opinion through a package titled 'Holistic Organisational

Transformation Strategy' for APSR TC. The IIM has carried out similar tasks for the

Karnataka Transport Corporation and the Delhi Transport Corporation.

The IIM-B has recommended certain revolutionary changes to implement in

the APSRTC for its development . They are :

P APSRTC should be divided into four Autonomous Strategic Business

Units(SBU's). In total 24 depots are to be established including Hyderabad

Regiion which includes the picket &pot of Ranga Reddy division. For

development of the SBU's , loans are to be obtained from central urban

development organisation and world bank etc., According to the increasing

needs of the people of metropolitan cities the SBU's should be modernised.

Among the SBU's one may be of Kakinada in East Godavari District

including 61 depots of other districts around it and another may be of

Kadapa with 63 depots in the surrounding districts.Karimnagar also may be

made one SBU's with 64 depots from 9 districts around it.

> The present zonal and divisional system and the existing 43 Divisional

Manager posts are to be nullified and the incumbments are to be provided

with alternative duties.

> To look after the asset management and marketing management two divisions

are to be established at corporate level

P The posts of Financial Advisor and Chief Accounts Officer are to be merged

and the post of Director (vigilance) should be abolished.

> The number of members in the administrative should be increased to

25 which includes 9 experts pertaining to Transport field.

> The present routes of express and hitech buses are to be reconciliated since

they are running in loss. Inter state routes are also to be reconciliated since

they too not an exception.

> Ticket Issue Machines Services (TIMS) are to be established in the busses

which run in main routes of the state by ~arch,2007.

> The number of buses are to be increased from 18000 to 20000 by 20 13-14.

Similarly the hire buses are also to be increased h m 2 185 to 4685. It should

be seen that occupancy rate is increased to 70% . The number of employees

should be retricted to 5.75 for each bus from the current number of 6.15.

> The Government should invest b.750 Crores in the RTC in three years at

Rs.250 Crores for each years and also cooperate to obtain loans according to

the increasing needs.

P The Government is giving subsidy for vehicle tax to the other categories are

being paid by the government . This system should be continued atleast for

next 5 years.

P Buses run with Compressed Natural Gas (CNG) are to be introduced. To

purchase these buses, the government should give subsidies to the RTC. They

are to be first introduced in Vijayawada and later in Hyderabad. The bus will

give mileage of 4.94 krns for lkg CNG, The CNG vehicles are exempted

fiom Motor Vehicle Tax and commercial tax is also less comparatively. The

usage of CNG saves 1.07 paise per km for the RTC. A city bus run with

CNG costs about 5.50 lakhs. The cost will not increase on par with increase

in the diesel rates. The CNG will reduce the pollution even.

> Fifteen depots in the state which are in loss are to be closed. The buses in

every depot should run from 40 to 60'krns radius. Every depot should

contain maximum 125 services. The satellite depots are to be established

wherever necessary. Certain plans which increase the income of the

organisation are to be implemented like introduction of parcel services and

the conversion of the waste lands in the depots with commercial

establishments etc.,

> The display boards exhibiting the details of buses are to be installed in the

bus depots as well as buses. Call centres are also to be formed. Bus stops are

to around wherever necessary. The mobile and wireless system are to bc

incorporated in the buses running in main routes. Y

b The ticket selling agency system merely for RTC is to be established in all

places.

> The voluntary retirement scheme (VRS) should be attractively designed , so

that it will be beneficial to the optees of (VRS). And such optees should be

given preference for reappointment in other outsourcing as well as private

organisations.

b The workers are to be sanctioned loans liberally and they are to be provided

residential plots in the districts opted by them except in Hyderabad and

Visakhapatnarn areas.

b 0.1 percent income of the RTC should be spent for employees welfare and

similarly 0.15 percent income should be spent for the development of human

resources.

b Tickets, CAT Cards and renewal passes are arranged to be issued through

internet.

> The loss due to the private buses is increased to Rs.847 Crores from 97

Crores in 1995-96. As a result the RTC lost 29% of income'

P The 65% routes of RTC are not making any profit. The position in other 20%

routes are also similar to some extent RTC losts Rs.4900 Crores due to

running buses in these routes. Therefore routes are to be resurveyed and loss

running routes are to be clubbed with profitable routes.

b The debts obtained by the RTC is very huge. If more loans are obtained to

repay the current loans the organisation will definitely run with insolvency.

Therefore, to avoid this position the government may pay the entire loans

and the interest thereon. The RTC may also come out of the danger by

calculating their assets at the present market prices.

The Government of Andhra Pradesh may .need atleast Rs.1000 Crores to

implement the above recommendations. ' *

APSRTC - PLATINUM JUBILEE YEAR, 2007

As the first nationalised bus transport undertaking in the country APSRTC

had its origin in June 1932 as wing of Nizarn State Railways under the name of

Nizam State Road Mechanical Services with a fleet of 27 buses and 166 employees.

Thanks to patronage of passengers over 75 years, it has grown to become the largest

passenger bus fleet holding organisation in the world with 19322 buses. It has been

a pioneer in the respect of several schemes , notably introduction of long distance

services, night express services, introduction of integrated depot setup,

computertization of all bus depots etc.,

Honourable Chief Minister of A.P, Sri. Dr.Y.S.Rajasekhara Reddy,

inaugurated Platinum Jubilee Celebrations of the APSRTC on 27-1 1-2006. On this

great occasion, in order to come still closer to the passengers by enhancing the

quality and comfort levels of his travel and to solicit their contained and increasing

support to its services, APSRTC is launching (1). An year long promotional

campaign and (2). Newly designed superior coaches namely Pallevelugu for

ordinary routes.19

That the performance indicators of the corporation seem to be improving in

recent years despite losses suffered by the organization. This is possible only with

the extra efforts put in by the employees and the management. It is in this general

background, personnel management in APSRTC with reference to Chittoor region

is discussed in the next chapter.

REFERENCES:

1. Gupta, K.R., "Issues in Public Enterprises", New Delhi, Sultand Chand

Corporation, 1975, p. 16.

2. Kapoor and Narang, 'Organisation and Management, Danpatrai Publishing

Company, New Delhi, 1979, p. 129.

3. While, L.D., 'Introduction to the study of Publication Administration',

MacMillan, New Yori, 1958, p.40.

4. J. Satyanarayana, 'The Working of the APSRTC', Concept Publishing

Company, New Delhi, 1985, p, 16 1.

5. APSRTC, Annual Administration Reports fiom 1990- 199 1 to 2002-2003.

6. APSRTC: op.cit, p.63.

7. Mathur, O.P., Coming to grips with issues of pricing urban water and intra-

city bus transport', Paper presented at a conference on India: Fiscal Policies

to Accelerate Economic Growth, New Delhi, 21-22 May, 2000, pp.5-6.

8, These figures are collected from a leaflets released by different political

parties during APSRTC employees strike during 15' October to 7"

November 200 1.

9. The Hindu, Hyderabad edition, 7" November 200 1, p.6

10. APSRTC, Annual Administration Report 1990-9 1, Hy derabad, pp. 40-4 1.

1 1. APSRTC, Annual Administration Report 199 1-92, Hyderabad, pp. 52-53,

12. APSRTC, Annual Administration Report 1993-94, Hyderabad, pp. 62-63.

13. APSRTC, Annual Administration Report 200 1-02, Hyderabad, pp. 54-55.

14. Based on discussions with officers in APSRTC MD's office and with

APSRTC union leaders.

15. APSRTC, Annual Administration Report 2001-02, Hyderabad, pp. 36-37

16. The statistics are provided by officials in the APSRTC MD's office,

H y derabad.

17. The Hindu, Times of India and Economic Times, Hyderabad edition, 28'

October 200 1, pp.6-8.

18. The Eenadu Telugu Daily, Hyderabad Edition, 8"ebruary 2007,pplm2.

19. Press Note released by the Ofice of the Vice Chairman and Managing

Director, Hyderabad; dated 27- 1 1-2006.