Not everyone knows that the Kadamba Transportation Corporation Limited, KTC buses run in a loss of Rs.8 lakh every single day on an average and Rs.2.51 crore every month. The Corporation was introduced by former Chief Minister of Goa, Pratapsingh Rane but sadly it ran into a heavy loss ever since its startup in 1981.
After all these years the KTC finally made a profit by purchasing the best of buses that will provide quality services. Their strategy is to give the best of services so that it will tempt the commuters to use the KTC buses instead of their private vehicles. This is another means to cut down the traffic load in the state.
“KTC for the first time since its 29 years of existence has made a profit of 5crore 19 lakh. KTC will only come out of total loss once the new bus stands are built with ultra-modern facility,” says Chairman of KTC and Mormugao MLA Carlos Almeida.
Despite the government giving a subsidy of Rs.30 crore annually, they incur a loss every single day as they have to pay the salaries to the workers, maintain the buses and incur fuel expenses.
500 of the KTC buses ply nationalised routes as well as urban and village routes, which not all buses would take. On an average KTC buses cover 24.80 lakh kms, generate revenue of Rs.9.67 crore and incur an expenditure of Rs.12.18 crore, every month.
Expenditure more than profit:
- Payment of salaries – Rs.6.50 crore
- Oil & diesel – Rs.3.80 crore
- Maintenance – Rs.67 lakh
- Spare parts – Rs.28.64 lakh
- Purchase of tyres, etc : Rs.20.83 lakh
- Taxes on passenger goods – Rs.15 lakh
- Service tax – Rs.10 lakh
- Miscellaneous – Rs.47 lakh
KTC’s monthly income from operation of buses is Rs.5.67 crore, and Rs.2.66 crore comes from different sources of subsidy. The KTC gets revenue of Rs.65 lakh through ‘pass system’, Rs.40 lakh through rents and Rs.20 lakh in the form of educational subsidy.
Hoping these services work out well for the KTC as well as the citizens of the state.