Even the Rs 100 crore assured by the Union Petroleum Ministry to KSRTC to set up its CNG plant, will not have any impact immediately, as the corporation, would have to find the money to convert diesel bus engines so that they can use natural gas.
Transport Minister Aryadan Mohammed told reporters in Delhi that using CNG will not be an immediate solution to the crisis in the KSRTC. Converting to CNG will also create a huge financial liability causing an additional expense of Rs 250 crores, Aryadan Mohammed said.
KSRTC MD K G Mohan Lal told Deccan Chronicle that the KSRTC is yet to work out the details on conversion of its buses to CNG. The first thing that needs to be addressed will be its availability, he said.
The fact is that it would take at least two and half years to establish CNG stations in all KSRTC bus stations and for the conversion of buses.
Moreover, the Gas Authority of India Limited(GAIL) is yet to complete the laying of its pipeline between Kochi and Mangalore, that will carry the CNG, in seven districts from Ernakulam to Kasargod. This means that converting into the CNG mode depends on the completion of the first phase of the pipe-laying works of GAIL in Kochi.
It was in 2006, that the State Government had first submitted a proposal for converting KSRTC buses into the CNG mode. The proposal, worth Rs 280 crore, submitted to the Planning Commission envisaged using CNG in 1,500 buses in the first phase along with another proposal for acquiring electronic buses. The Corporation had estimated that it could register an annual profit of Rs 43 crore by converting to CNG and Rs 288 crore on using LNG back then.
However, the Union government had not responded positively to the proposal. The corporation had then calculated that Rs five lakh was needed to convert one bus engine to accept CNG as fuel.
At present, the KSRTC has 5,555 scheduled and 6,179 buses. The average earning per km works out to around Rs 30.83 and the average earning per bus works out to Rs 10,049. The monthly loss that is incurred by the corporation ranges between Rs 70 crore to Rs 90 crore.
Source: Deccan Chronicle
