Reforming state transport corporations-case of TNSTC

The government owned Tamilnadu State Transport Corporation and the State Express Transport Corporation with a fleet of about 20000 buses incur loss of around Rs.1000 crores per year. For the benefit of the corporation/government as well as the commuters, buses should be leased at a moderate rate of  around Rs.1000/ per bus per day. The preference should be given to existing drivers and conductors. For around 20000 buses, the government can earn about Rs.750 crores per year against loss of about  RS.1000/- crores. The lease income should be used to provide more amenities to the passengers like providing adequate space for luggage, fans, drinking water,, cleaning the buses at intervals of 8 hours, providing first aid kits at buses, fixing doors at entrance/exit points etc and for buying new buses. The lessees could also be permitted to earn revenue by running advertisements in the closed circuit TVs, written advertisements, collection and delivery of small packets of luggage etc.. The lessees will be allowed to fix bus fares themselves subject to a maximum rate to be decided by the government. They can also be permitted to fix variable rates- different rates for peak hours , lean hours, day time, night time etc.

When the fares are raised substantially, the lease amount can also be raised.

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