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This is an archive article published on November 10, 2019

Rs 6,000-crore loss, dwindling revenues force MSRTC to accelerate measures to earn more

According to MSRTC officials, the state transport undertaking has suffered losses of over Rs 6,000 crore in the last two to three years. Now, it has taken a number of steps, such as setting a target for depots and revisiting its booking lists, to generate more revenue.

The regulations on school and college tours were introduced by the state Education department in the wake of the 2016 Murud beach tragedy, in which 14 students from a city-based college drowned during an educational trip.

The Maharashtra State Road Transport Corporation (MSRTC), which runs around 18,500 buses and ferries 70 lakh passengers daily across the state, is trying to shore up its dwindling revenue.

According to MSRTC officials, the state transport undertaking has suffered losses of over Rs 6,000 crore in the last two to three years. Now, it has taken a number of steps, such as setting a target for depots and revisiting its booking lists, to generate more revenue.

Setting a target

The MSRTC will soon set a revenue target for each depot, which will be earned via bus bookings by schools, private parties and religious pilgrimages. The decision was taken after the transport body’s annual revenue from such bookings showed a steep decline in the financial year 2018-2019.

According to senior MSRTC officials, division-level officials will also be nominated to ensure that issues faced by the transport body are addressed and targets set for the depots are met.

Why are bus booking numbers dropping?

MSRTC data shows that the revenue earned from booking of buses for trips and excursions has gone down by more than a third last year. In 2017-18, schools and colleges across the state had booked 14,547 buses, generating a revenue of Rs 64 crore for MSRTC. “But in 2018-19, only 5,247 buses were booked, and our income fell to Rs 20 crore. School bookings and private tours are among the most assured sources of income for MSRTC.

The number of bookings fell last year due various reasons, including strict regulations on school and college tours implemented by the Education department…,” said an official.

The regulations on school and college tours were introduced by the state Education department in the wake of the 2016 Murud beach tragedy, in which 14 students from a city-based college drowned during an educational trip.

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To increase the number of bookings, MSRTC will instruct depot officials to refer to the bookings by educational institutes and private citizens in the earlier financial year, and revisit them to find out if they would like to book buses again.

“They have also been instructed to approach government and private schools and see if there is any demand for tour bookings. They have been instructed to ensure that regular operations are unhindered due to tour bookings,” said the official.

Why the regulations?

On February 1 2016, a beach picnic by students of the Abeda Inamdar College’s computer science department turned into tragedy when 14 of them drowned in the sea while swimming.

In the aftermath of the tragedy, a committee formed by the Savitribai Phule Pune University studied the existing guidelines on college trips and excursions, and suggested changes to the state government. After the report was submitted by a three-member committee of principals, the university revised guidelines on trips and excursions.

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In October 2018, the state Education department issued strict norms, asking schools and junior colleges to ensure that educational trips and excursions are undertaken with an aim to develop the intellect or overall personality of the students.

The Education department warned that action will be taken against principals of schools or junior colleges who organise tours without permission, or to places just for entertainment, or even to picturesque locations which may pose a threat to the safety of students.

 

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