VI. TRANSPORT DEVELOPMENT
- The sub sectors covered under this category are Motor Vehicles Department, Kerala State Road Transport Corporation (KSRTC) and Kerala Transport Development Finance Corporation (KTDFC). The outlay proposed by the working groups are shown in table-6.
Table - 6
Ninth Plan Outlay and Working Group's projection for Tenth Plan
(Rs. in lakhs)
Name of Sub Sector Motor Vehicles Dept. KSRTC KTDFC
Kerala State Road Transport Corporation (K S R T C)Kerala Transport Development Finance Corporation (KTDFC)
- KSRTC at present has a fleet strength of 4617 vehicles. 67 % or over 3090 are above seven years old and meet the normal replacement norm of KSRTC. As per this norm, during the Tenth Plan, 3604 vehicles (including those attaining the age norm during the 10th Plan) are due for replacement and at the rate of Rs.10 lakhs per bus (including body building) a total outlay of Rs.360 crores is required. KSRTC has proposed replacement of 300 buses per year or 1500 buses during the 10th Plan period and the approximate cost works out to Rs.150 crores. Given the constraint on resources and the indisputable inability of the State to provide the needed resources, it is necessary that KSRTC takes a fresh look at its own role in the road transport system in the State. Even at present, it plays only a small role in the total road transport net work, accounting for only 18% of total number of transport buses. If we take into account the operation of large number of mini vans etc. engaged in regular passenger transport even in nationalised sectors, KSRTC's share in passenger transport by road will stand further reduced. Its operations are largely confined to nationalised routes. It is true that KSRTC operates some uneconomic routes and also bears the brunt of the burden of student's concession. If operation of uneconomic routes is in fulfilment of some social obligation as specifically mandated by the State Government, KSRTC should be subsidised for the operation of such routes. The burden of students concession falls on private operators also and while the concept of a State subsidy may seem the obvious solution, its feasibility is open to doubt. A measure of cross-subsidisation by other full fare paying passengers will offer at least a partial solution. KSRTC is operating the city services in Thiruvananthapuram and city services are generally unremunerative even under the best of circumstances. Private operators have been inducted into the city services and are operating successfully for the past couple of years. There was no dearth of private operators willing and indeed, eager to enter this field. Given the resource constraints, the number of buses or routes operated by the KSRTC need not be kept as a sacrosanct. Some States have tried different models of SRTU operations such as hiring buses (UPSRTC) kilometer system (Delhi) and even throwing open nationalised routes to private operators. As against a plan outlay of Rs.30 crores for the IX plan the anticipated expenditure during ninth plan is estimated at Rs.55.7 crores. The Working Group recommends that the allocation for the Tenth Plan may be fixed at Rs.30 crores. The Working Group did not find in the proposals by the Department or any analysis of the performance of the SRTU and a commitment to improve the various performance parameters. Apart from financial ratios, other parameter like fleet utilisation, bus utilisation, staff productivity, road safety are important and there should be a commitment to show improvement over current benchmark levels on a quarterly and annual basis and the release of funds after the initial release should be conditional on it. The Association of State Road Transport Undertaking (ASRTU) brings out very useful inter-SRTU comparison but they have not been able to include KSRTC in their compilation because KSRTC in the distinguished company of other SRTUs like Bihar SRTU, Orissa SRTU etc. has not been furnishing data on its physical and financial performance.
Motor Vehicles Department
- The KTDFC has a share capital of Rs.50 crores entirely contributed by the State Government and they are in the business of financing the purchase of vehicles. They are reported to have raised public deposits to the tune of Rs.39 crores as on 30/9/01. The KTDFC has proposed an outlay of Rs.20 crores in the Tenth plan. No details or justification have been given in support of the proposal nor were they able to show the extent of leveraging they hope to achieve with the additional infusion of budgetary support. KTDFC should operate on commercial lines and they are a profit making institution and should normally have access to other sources of financing such market borrowing, debentures, public deposits etc. The Plan committee does not recommend any further contribution to the equity to KTDFC.
- The Motor Vehicle Department has proposed a total plan outlay of 82.32 crores compared to IX Plan outlay of 5 crores. There has been an explosive growth in the vehicle population in the State and given the very slow augmentation of road facilities, congestion in roads and the accidents rate have increased considerably. The Motor Vehicle Department is also a department which has very frequent interface with the public. Therefore, there is need to improve the regulatory framework as well as the systems so as to deal with the large number of vehicles and the customers. It is also a revenue earning department. The Ninth Plan outlay/expenditure, fund required for the Tenth Plan and details of schemes and programmes proposed by the M.V. Department are given in Table No.7 and 8.
Table - 7
Ninth Plan Outlay and Working Group's projection for Tenth Plan
(Rs. in lakhs)
Sector Spill over requirement Fund required for new schemes M. V. Deptartment.
Table - 8
Details of Schemes and Programmes Suggested
by the MV Department during the X Plan Period
Outlay recommended by Plan Committee 1. Computerisation
Backlog data entry work
Smart Card for Driving License
85.00
125.002. Control of Automobile Pollution
Control of Puchase of Vehicles
300.003. Road Safety
Hand held Radars
Walkie-Talkies
157.50
18.004. Speed Watch Tower 5. Mobile Speed Testing Unit 6. Vehicle Testing Stations 7. Road Safety Awareness Programme 8. Road Safety Mandatory Traffic Signs & Hoardings 9. Road Safety Breath Analysers 10. Control of Noise Pollution 11. Touch Screen based Information Kiosks 12. Inservice Training Course 13. Photocopiers & Fax Machines 14. Motor Vehicle Bhavan 15. Computerisation of Checkposts 16. Driving Testing Yard 17. Computer System Supervision 18. Road Safety Clubs 19. Purchase of vehicles for enforcement work
- After examining the proposals of the Department, the Plan Committee should recommend the following :
- The Working Group has proposed Rs.2301 lakhs for computerisation including 85 lakhs for back log data entry and Smart Card. Items such as computer and other hardware, and software constitute the major items and is estimated to cost Rs.144 lakhs. Plan Committee assumes that these computerisation programmes would be implemented in various Regional Transport Offices in phases. The Department does not seems to have explored other avenues such as leasing of hardware and the option of contracting out items such as backlog data entry work. In fact many user institutions are going in for leasing of hardware instead of captive facilities because of obvious advantages of lower capital cost as well as possibilities of upgradation at frequent intervals. The package of leasing may also include personnel who would operate the hardware facilities if so required by the client. While the Plan Committee is supportive of computerisation programme they would suggest that the department should prepare a cost benefit analysis of various option to the purchase of hardware, departmental entry of backlog data and preparation of smart cards. In fact the proposed outlay of Rs.2301 lakhs is a major project and even if it is cut to 1/2 or 1/4th, will remain so and should be subjected to all the rigourous discipline of project approval such as project formulation, identification of various components, examination of various alternatives and cost benefit analysis. One major drawback of the proposal is that the staff component, if any, has not been identified and this could be substantial hidden cost. In fact computerisation should really lead to saving in staff cost and the department should give a definite commitment to this as part of project approval process. The department has proposed Rs. 450 lakhs for the control of automobile pollution for purchase of equipments like analysers and smoke meters worth Rs.150 lakhs, and purchase of vehicles to mount these testing equipment (60 vehicles - Rs.300 lakhs). Even though 60 vehicles have been proposed no provision is seen for drivers, running expenditure of the vehicles etc. The State has a network of about 160 pollution testing stations in the State and the rationale for proposing the investment of Rs.450 lakhs offered by the Department is that they are not certain about the veracity of the test results given by the pollution testing stations run by the private agencies.. The rationale of the proposed investment is not convincing and if the credibility of the certificates issued by the privately run testing stations is a serious problem, the department should conduct surprise checks on the veracity of the certificate as the vehicles come out of this testing stations and frequently check the caliberation of the equipments. At most, the maximum that may be permitted could be the purchase of one set of gas analysers and one set of smoke meters per districts (28 in all at a cost of Rs 35 lakhs) No vehicles are needed for this and for purpose of spot checks, the department could use their existing vehicles and even hire a vehicle for a day or two in a month.
- For noise pollution checks the department has proposed Rs. 170 lakhs for the
purchase of 170 sound meters. As of now there is no evidence that noise levels from automobiles have turned to be a health hazard. It is not high levels per sec. that is injurious to health but exposure to high decibel levels continuously for a certain period. If there is credible evidence with the Department that high decibel levels from motor vehicles has in fact turned out to be a health hazard, the proposal can be revived with the supporting data but even here facilities for testing can be integrated with the existing pollution testing stations.
- There are some items in the proposed programmes which may have scope for private participation, for example Rs. 810 lakhs is proposed for setting up of motor vehicle testing stations at 18 centres. (450 for land, 180 buildings, 180 for equipments). This is also a substantial investment and should be subject to a project approval process including cost benefit analysis, identification of various components, including staff components, if any, expenditure and income streams and also examination of various alternatives. Motor Vehicle Act and Rules permit the entrustment of certain functions to private agencies and therefore this option should be actively explored. These functions include, besides the running of Driving Schools and Pollution Testing Station, the testing of vehicles for issuing fitness certificates (Section 56(2) of the M.V.Act 1988) and some states have utilised the provisions (for eg. Delhi). There is no reason why Kerala should continue rely solely on its bureaucracy, not conspicuous on for its efficiency, integrity or courtesy when alternative non-Government agencies also can play a part. The Department has proposed introduction of touch screen based information kiosks with an outlay of Rs.150 lakhs. This perhaps can wait till resource position improves and it is not a high priority item. Regarding the construction of Motor Vehicles Bhavan at a cost of Rs.220 lakhs, the Plan Committee invites attention of the Planing Board to the observations made in para 11 above on projects like this. The department has also proposed the modernisation of the check posts with an outlay of Rs.810 lakhs. While we recognise the need, the Plan committee would recommend that instead of various departments such as the Forest department, the Sales Tax department, the Excise department setting up their own check posts, weigh bridges etc. a nodal agency for Government may plan an integrated facility under which the incoming/outgoing vehicles will be stopped and checked only at one point and various data or outputs from the vehicles will be available on the screens at the premises of various offices or cubicles manned by different departments. Pending the formulation of such a scheme now recommend an outlay of 200 lakhs for the modernisation of checkposts.