Impossible to run TN transport corporations profitably: Minister

Admitting that increasing establishment costs and diesel prices has led to increase in the operational cost of state transport corporations every year, the minister said the salary bill of transport employees account for 51.64% and diesel 27.72%. 

Going by the minister’s reply in the House, repair and maintenance account for only 3.03% of the operational cost. 

Average salary in transport corporations was Rs 41,000, whereas the private players only pay Rs 20,000, the minister claimed, reasoning that the private players identify and operate on profitable routes, but the government must ensure transport connectivity and offer service to the people and hence it was not possible to run the corporation profitably. 

Intervening during the debate on demand for grants for his department in the State Assembly, Vijayabhaskar said the government spends Rs 43 per km and only gets Rs 33 per km. 

The return was Rs 20 per km and less in ghat sections, Vijayabhaskar said, responding to the query of the Congress MLA  who questioned the possibility of running the state transport  corporations profitably like private operators.