Wednesday, Nov 20, 2002
Wednesday, Nov 20, 2002 |
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Tamil Nadu
By S. Vydhianathan
In this exercise of opening up public transport in a big way, the Government has planned to offer about 50 per cent of the bus operations on each route owned by various corporations to private players, while keeping the other half with the corporations. That way, there will be `competition' on each route between the private and public sectors. Privatisation applies to city routes also. The government action follows the Transport Minister, R. Viswanathan's announcement in the Assembly during the last budget session that the structure and performance of the corporations were studied by various committees and their recommendations were being implemented. Already some of the suggestions had been implemented. According to official sources, the 50-50 share will be applicable to routes on which more corporation buses are now being operated. This, the Government feels, will provide scope for a healthy competition. Besides, monopoly by private operators on any particular route will be averted. For example, if a corporation is operating 10 buses on a single route, say between Salem and Dharmapuri, private parties will be allowed to operate five buses, with the corporation running the other five. The Government is identifying the premium routes with each corporation, which will be given to private parties on an `open tender' basis according to the Tamil Nadu Transparency Act. As these are "virtual money-spinners", keen bidding for `purchasing' the routes is expected. The corporations, despite their monopoly over a majority of the routes, have not been able to make profits what with heavy overheads. Some of the routes have been profitable, but the corporations are weighed down with `uneconomic routes', explain the sources. At present, there are eight employees for each bus owned by the corporations, whereas the private operators are able to manage with fewer workers. The revenue generated by the `open tender' of the premium routes will be utilised for replacing "overaged" buses with the corporations. Consequent to privatisation, all corporations will end up with surplus staff. As such, the Government is thinking of a VRS scheme. The Government appears confident that privatisation will provide efficient and better service to passengers. It is also keen on continuing with corporation services in unserved rural areas, where private operators may not be interested in operating. In a preliminary attempt at cutting down on administrative overheads and at avoiding wasteful competition in operation of services among the corporations, the Government has already initiated a `restructuring' process to reduce the number of corporations, from 21 to seven. Amalgamation of Metro Transport Corporations I and II in Chennai city, divisions I and II in Coimbatore and both the wings of the State Express Transport Corporations, Chennai, has been completed, the sources say. Proposals have been sent to the Centre for approval of the other changes. A public notice has been issued for the amalgamation. The Government has also asked the transport corpo rations and the public to send their representations to it. A public hearing will be held here on December 17.
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