Use every available bus, increase schedules, to remain afloat: Kerala HC to KSRTC

The Kerala High Court on Tuesday directed the state road transport authority, KSRTC, to ensure every bus which it can put into operation was deployed and the number of schedules increased so that it can reach the target ticket collection of Rs 8 crore per day, saying it appeared to be the only way to keep the corporation afloat presently.

The direction by Justice Devan Ramachandran came after the state government informed the court that according to a report received from the Kerala State Road Transport Corporation (KSRTC), more than 700 of its buses are lying idle over certain issues raised by the employees.

''I do not think that the KSRTC can afford to keep any bus idle, particularly when employees are available and there is a yet uncorroborated input, that the employee - bus ratio in it is higher than many others in the country.

''I, therefore, adscititiously direct the KSRTC to ensure that every bus which is capable of being put to operation, is deployed and that schedules as far as possible is increased, so as to reach the target ticket collection of at least Rs 8 crore per day, which alone appears to be the method of keeping the KSRTC afloat at this point of time,'' the judge said.

The direction by the court came while hearing several pleas by drivers and conductors of KSRTC seeking timely payment of their salaries.

In its order, the court ordered the KSRTC to ensure salaries for the month of July are paid to all the employees are paid by August 10 and the remaining wages for the month of June are paid by August 5.

The court also granted time to the state government to reflect on various issues -- like audit of the assets of KSRTC and the constructions by the Kerala Transport Development Finance Corporation (KTDFC) and paying off the accumulated liabilities towards the consortium banks so that the transport authority can operate without loss -- pointed out during the hearing.

The court said it was necessary for the government to conduct a proper audit of the assets of KSRTC and constructions made by KTDFC, after it was told by the petitioners that many of the buildings constructed by the latter on a Build - Operate - Transfer (BOT) arrangement were ''sub-standard and incapable of attracting commercial interest''.

''This issue certainly must engage the mind of the government because a substantial share of the liability of the KSRTC appear to have been created on account of such constructions,'' the court said.

It also said that it was worried over the sums that KSRTC owes to a consortium of banks and financial Institutions, including the KTDFC.

''More than Rs 30 crore is being paid as repayment and virtually the assistance given by the government - which is approximately between Rs 30-50 crores - is eaten up by this component.

''However, the affidavit does not say how the government plans to control this, or to wipe off the liability, so that, as this court has been saying earlier, the KSRTC can at least become a no - profit - no - loss entity,'' it said.

To this the government counsel said that the government was still in the process of evaluating this aspect and that they will take a decision within a month's time.

The state government also told the court that KSRTC employees were not cooperating with the management regarding certain necessary reforms and that unless productivity was improved and becomes visible through the cooperation of the employees, further assistance to the transport authority may not be possible.

The state government also blamed the employees' unions for the continuing strikes despite assurances made to the court.

Taking note of the state's contentions, the court said that ''unless the profitability of the KSRTC is increased, its future is bleak'' and that every stakeholder -- including the management, employees and the government -- has to recognise and accept this.

''The definitive role each has to play are vital and a synergy has to obtained between the three. Unless all the said stake holders act in unison, it will be impossible to find resources to pay off the recurring liabilities of the KSRTC,'' the court said.

It also pointed out that in addition to the tickets sales of the KSRTC, non-ticket revenue also have to be increased, ''if it has to find survival in future''.