Corporatisation of the Kerala State Road Transport Corporation (KSRTC) by forming a limited company and setting up two companies for operating long-distance and short-distance routes has been suggested in the turn-around strategies to improve the KSRTC’s financial health and profitability and to make it a ‘class provider’ of public transport services.
The corporatisation of the KSRTC would automatically reinforce controls through the strict provisions of the Companies Act 1956 and 25 per cent of the shares can be offloaded to the public, which will facilitate resource mobilisation, the report on financial restructuring and turnaround strategies of the corporation has noted.
Separate entities
Pointing out that the present size of operations of the State transport undertaking and the span of control are unwieldy, two companies had been mooted for operating long-distance and short-distance buses. Alternatively, two companies to manage the activities for North and South Kerala as separate entities had also been recommended.
The corporation has been asked to prepare a vision document and a mission statement to outline the broad policy for expansion and growth considering the need for healthy coexistence with the private sector, upgrading of the fleet and for technological improvements.
The strategy should be to encourage the middle class and upper middle class people who use private vehicles to travel by KSRTC buses by providing better facilities, amenities and ensuring punctuality.
Revenue generation has to be planned and costs have to be minimised as the thrust should be on providing safe, economic, and reliable mode of transport at affordable cost to the public.
A vibrant and efficient management team had been suggested to take the undertaking forward under the planned strategy, which includes innovative modernisation of the fleet.
Grants and subsidies
It has been pointed out that the restoration of financial health and profitability would be possible only if the government donates grants and subsidies to the transport undertaking.
The report said ‘management of labour has been disastrous in the corporation without any defined norms for monitoring and performance through productivity measurement and rating through realistic incentive system’. Accounting norms have to be laid down and sense of belonging has to be inculcated in the minds of the KSRTC personnel by making them real partners in the venture.
Without being able to change the mindset of labour by positively influencing them through proactive human resource practices, the turnaround strategy will not be successful and the management has to take a call on the matter.
Source: The Hindu
