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Analysis of Corporate Restructuring of Gujarat State Road Transport Corporation

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Chapter III, Performance review relating to Statutory corporation

Chapter III Performance review relating to a Statutory Corporation Gujarat State Road Transport Corporation
Executive summary
Gujarat State Road Transport Corporation (Corporation) provides public transport in the State through its 16 divisions and 125 depots. The Corporation had fleet strength of 7,561 buses as on 31 March 2009 and carried an average of 23.97 lakh passengers per day. The performance audit of the Corporation for the period 2004-05 to 200809 was conducted to assess efficiency and economy of its operations, possibility of realigning the business model to tap nonconventional sources of revenue, existence and adequacy of fare policy and effectiveness of top management in monitoring the affairs of the Corporation. Finances and Performance The Corporation suffered a loss of Rs. 158.28 crore in 2008-09 without considering prior period adjustments. Its accumulated losses and borrowings stood at Rs. 1,702.36 crore and Rs. 932.82 crore as at 31 March 2009. The Corporation earned Rs. 17.55 per kilometre and expended Rs. 19.11 per kilometre in 2008-09. Audit noticed that with a right kind of policy measures and better management of its affairs, it is possible to increase revenue and reduce costs so as to earn profit and serve its cause better. Vehicle profile and utilisation The Corporation could not keep pace with the growing demand for public transport and its share declined from 19.59 per cent to 16.38 per cent during 2004-09. Corporation had a fleet of 7,561 buses. Of these, 3,791 were overage i.e. more than seven lakh kms. The percentage of overage buses declined from 78.36 per cent to 50.14 per cent due to acquisition of 3,720 new buses during 200409 at a cost of Rs. 530.11 crore. The acquisition was mainly funded from the loans and equity contribution from the State Government.

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