Date:21/12/2007 URL: http://www.thehindubusinessline.com/2007/12/21/stories/2007122150130700.htm

Back Ministry mulls regulators for State road transportation

For fixing tariffs, route viability

Mamuni Das

New Delhi, Dec 20 As a part of the measures to reform the public road transportation sector, the Ministry of Road Transport and Highways is considering an option to have regulators in States to monitor the public transport services.

There is a need to have regulators who would fix tariffs for the public transportation services, study the viability of various routes by inviting competitive bids from multiple bus operators, official sources said.

“Based on this, multiple operators could be allowed to operate on a route with a viability gap funding, or in case of attractive routes, the State Governments can also receive funds (negative grant) from operators,” official sources explained pointing out that several state transport units are profitable.

State transport bodies like Andhra Pradesh State Road Transport Corporation, Uttar Pradesh, Maharashtra, Bangalore Metropolitan, Karnataka, Rajasthan, North Eastern Karnataka, Orissa, Tamil Nadu STC (Kumbakonam) and TN STC (Villupuram) have registered positive net profits for the first quarter 2006-07.

Sources added that the regulator can also ensure delivery of good quality of service by fixing different parameters that should be adhered to.

Road safety

“The regulator could enforce appointment of trained drivers to improve safe transportation,” said sources.

A committee, under chairmanship of Karnataka’s Principal Secretary, Mr D. Thangaraj, formed to recommend the Road Transport Policy, has been asked to study the possibility of having regulators in States in detail.

The Committee has been asked to study various legislative reforms that have to be brought about in order to implement such a plan.

However, officials also point out that some of the State Road Transport Authorities are likely to resist the move.