The Hindu : New Delhi News : DTC plans VRS for its staff

Online edition of India's National Newspaper
Friday, Dec 31, 2004

New Delhi

New Delhi

DTC plans VRS for its staff

By Gaurav Vivek Bhatnagar

NEW DELHI, DEC. 30. The Delhi Transport Corporation is planning introduction of a Voluntary Retirement Scheme for all categories of its employees.

As per the plan, no fresh recruitment in any category of staff is proposed to replace the retiring staff and the payback period in case of payment on account of VRS will be approximately two and a half years.

The proposal finds mention in the comments of DTC given in the Reform Action Plan of the corporation.

Incidentally, on financial restructuring of DTC, the Tata Consultancy Services -- which had carried out a detailed study on its restructuring -- had also recommended that funds be arranged for a Voluntary Retirement Scheme if it was agreed upon.

The matter has now moved forth as the Core Committee constituted to look into the recommendations of TCS termed the suggestion acceptable and stated that VRS be introduced for all categories along with a ban on recruitment and abolition of posts which are not required.

Along with VRS a number of other initiatives have also been suggested for bringing the corporation out of the red.

The Core Committee has also suggested charging of a terminal fee and presentation of bills to the Delhi Government as two long-term measures for financial restructuring of DTC by the Core Committee constituted to look into the Reform Action Plan for the corporation.

As per a presentation made by the Transport Commissioner, the Core Committee had in response to the recommendation on financial restructuring of DTC made by TCS stated that while in the short term the balance-sheet of the corporation should be cleaned up, it should also be allowed to charge terminal fee and present its bills to Delhi Government for keeping it financially sound.

The TCS had also recommended payment of terminal fees to DTC and full enforcement of the agreed terms as initiatives for financial restructuring of the corporation.

Also, it had asked for adjusting the cost of concessions and formalising the process of reimbursement and recommended that the loans given as "Ways and Means'' to DTC against losses or as capital contribution be readjusted.

As for the other recommendations of TCS, the Core Committee said while the Depot Budgeting System for profit and loss statements has already been introduced, the Cash Budgeting System for better working capital management has also been put in place.

On the need to revise the Depreciation Policy based on km usage rather than time period, the panel said the company Law needs to be examined to see if the Delhi Government can do so.

Further on TCS recommendation on bifurcation of Inter-State operations accounts into Short and Long Distance Routes, the Core Committee said this needs to be done to see the feasibility of operations outside the National Capital Region.

Alternatively, it said, unearned income alternatives can be examined.

For strengthening the operations, the Core Committee agreed with the TCS suggestion that the city fleet size be expanded with an appropriate mix of ordinary, deluxe and air-conditioned buses.

The panel said this need to be done by the leasing option.

And on the recommendation that new buses be introduced with own funds in select profitable routes on sample basis to establish viability and the possibility of the km scheme on inter-state routes be evaluated, the panel has advocated the need to examine all options for making these routes into profit-centres and even called for marketing of rights on these routes to the private sector.

On its part, DTC said that while leasing of luxury coaches has already been started, exploratory work on leasing of ordinary buses has also begun.

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