50 per cent occupancy cap: Transport corpns to incur Rs 25 loss per km

The seven State Transport Corporations, including Tamil Nadu State Transport Corporation Villupuram, Salem, Coimbatore, Kumbakonam and Madurai, have a fleet strength of about 21,500 buses and it operates about 19,500 buses in various routes across the State and to the neighbouring states. In Chennai, MTC has a fleet strength of over 3,600 buses and operates 3,400 bus services in about 670 scheduled routes carrying 30 lakh passengers a day.

Following the lockdown announced on March 23 to prevent the spread of Covid-19, the bus services remain suspended across the State.

Sources said that the losses suffered by the corporation would further mount due to the direction to operate buses only up to 50 per cent of its occupancy capacity. The break-even cost of the transport corporation buses varies from about Rs 45 per kilometre to over Rs 50 per km, sources said, adding that the break-even cost for MTC, SETC and Tirunelveli was over Rs 50 per km while it was about Rs 45 per km for Villupuram and Kumbakonam.

“The earning per km for a bus would vary from Rs 28 to Rs 32 for various corporations. After taking into account, the State government diesel subsidy and subsidies for various passes, including student’s pass, the loss per km would come down to Rs 14 to Rs 16. This was the state of the transport corporations prior to the Covid-19 lockdown,” sources said. However, the source, noted that if the buses were operated on 50 per cent occupancy capacity, the loss per km would go up by another Rs 10 to Rs 25 per km on an average.

“Unless the State government extends further financial support, the operation of the corporations would become unviable. Hence the government should exempt the corporation paying the motor vehicle tax and also the public transport buses should be provided concession in the payment of tolls if not fully exempted,” the official said.