APSRTC precariously perched

By W. Chandrakanth

HYDERABAD, OCT. 12. The indefinite strike notice of the Joint Action Committee of APSRTC employees unions comes at a none too welcome time for the Government seeking ways to bail out an excellent mass transport system from the financial mess it is in.

Despite a reassurance from the Government that there is no move to privatise the corporation, the JAC protesting against the refusal of the Government to consider pay revision and other demands, has given an indefinite strike call from October 15.

While the Government is hopeful that a common agenda of the management and the employees could save it from a collapse, there seems to be no hope unless the JAC gives in and agrees to a compromise and the former too shows some elasticity.

The loss sustained by the corporation is Rs. 607 crores at present and there is no way it would improve if the concessions given to various sections as a matter of social obligation are not reimbursed and the MV Tax of 15 per cent continues at the same rate.

Another problem seems to be the low occupancy ratio. The present occupancy ratio is 63 per cent and the management expects that to be raised to 69 per cent. The earnings for kilometre should also raise to Rs. 12.70 at least from the present Rs. 11 or so.

The JAC blames the MV Tax of 15 per cent and the Rs. 203-crore concessions given to various sections as the cause of the loss. The MV Tax alone amounts to Rs. 369 crores. These two together constitute about 25 per cent of the total revenue. The revenue during 2000-2001 was Rs. 2,333 crores.

The corporation sustained a profit of Rs. 12.70 crores even as late as 1994-95, but the tax hike in 1995 to 13 per cent and to 15 per cent in January 1996, brought it down to Rs. 6.32 crores. In 1997-98, the organisation sustained a loss of Rs. 49.72 crores and the next year Rs. 98.6 crores and Rs. 151 crores afterwards and in 2000-2001, it became Rs. 210 crores. By this August, the cumulative loss shot up to Rs. 607 crores.

The Minister for Sports and CMEY, Mr. T. Seetharam, who is also a member of the five-member Cabinet Sub-Committee, counters the JAC claim saying that a disciplined approach, efficient management and improved dedication could make all the difference.

There are 19,000 RTC vehicles to the 33,000 private vehicles. But, not all private vehicles are owned and operated by fleet owners.``It is more to generate self-employment that the private vehicles, particularly the smaller ones are allowed to be operated. If we impose a higher tax on them, how do they sustain. It is against the very policy of providing self-employment,'' the Minister adds.

The management on its part has made a few proposals to the JAC to tighten the belt and save the organisation from a collapse. The doomsday seems to be fast approaching and in the next two years, if a concerted effort is not made by both the Government and the employees, the corporation's existence becomes doubtful.

Multi-trades, increased working hours, direct recruitment to some posts, cancellation of special grades and a moratorium on wage revision are some of the suggestions made by the management.

There is no disagreement at all that wage revision is necessary or that the corporation should not be privatised. The Cabinet Sub-Committee members acknowledge the performance of the corporation but say it only needs some improvement.

``Whether one goes on strike or not, the next two years are crucial for the health of the corporation. The way it is functioning now will lead to the death of the corporation. Going on strike without realising the gravity of the situation would only hasten the process of collapse. We are willing to yield a bit, but they too have to respond positively. Prejudiced approach will not help anyone,'' the Sub-Committee members argue.

The JAC leaders seem not to be too averse to yielding the ground a bit. But, they see the measures suggested by the management as a step towards privatisation. The leaders say the norms suggested tantamount to flouting labour laws. The blame should rest with the top brass who are playing havoc with the corporation, they say.

The only way out in the present crisis seems to be a certain wisdom on part of both in yielding the ground a bit, or else the indefinite strike at this juncture might as well mean the epitaph that much sooner for this ``great corporation.''

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