HRTC (Himachal Road Transport Corporation) has been bearing losses since last five years. As per a report of CAG (Comptroller And Auditor General) HRTC’s (Himachal Road Transport Corporation) losses increased by Rs. 365.19 crores in last five years. The losses in the year 20111-12 were Rs. 653.45 crores and the losses in 2015-16 were Rs. 1,018.64 crores. Himachal Road Transport Corporation is drowning into losses!
Reason For The Heavy Losses
As per the CAG report which was tabled in the state assembly, the main reason for the heavy losses has been the operational efficiencies. Also, the HRTC’s fare did not match the operational expenses.
The other reason is the lack of route analysis between the state owned corporation and private operators.
HRTC’s net worth has also been gone down since 2011-12. The report also stated that HRTC’s performance was below all-India average in terms of vehicle productivity all the hilly states.
HRTC’S losses raised by 56% in the last five years. HRTC’s passenger improved from 39.57% to 45.80% in the year 2011-12 to 2015-16.
Excess Fuel And Extra Expenditure
The CAG report stated that the Himachal Road Transport Corporation consumed 498.38 lakh litres excess fuel of all India from the year 2011-2016. The excess fuel cost them extra expenditure of Rs. 240.02 crore. The state government compensates the extra expenditure by providing concessions and free passes to various sections of the society.
The claims submitted by the corporation were not actual and were on estimate basis. The estimated claims from the year 2011-2016 were of Rs. 1,111.66. The state government reimbursed Rs 895.00 crore and the rest Rs 216.66 crore was left uncovered.
As per the CAG report, there was no mechanism to ensure that HRTC and private operators would equitably share the burden of uneconomical routes. The route permit prices were allotted on an ad-hoc basis and there was also no mechanism to ensure the reasonability of the price of a route permit.
The state government and HRTC should also define criteria for allocating the routes between private and corporation operators as recommended by CAG. As per CAG, this would ensure equitable distribution of uneconomical routes. CAG recommended that the prices of the routes permits should be also determined.
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