BMTC continues to make losses

Nischith N | NT

The Covid-19 pandemic and subsequent lockdown hit road transport corporations badly. Even when restrictions were eased and the number of cases started to drop towards the end of 2020, RTCs across the country were unable to bounce back. Now, with the financial year coming to an end, the BMTC records show the loss it incurred in the year 2021-22.

Despite the state government recently releasing Rs 948 crore to fund its employee salaries, the Bangalore Metropolitan Transport Corporation is estimating a revenue loss of about Rs 200 core in the FYI 2021-22. This is in addition to an outstanding debt amount. As the state-run transport corporations are in loss, a demand was made to merge all four corporations. Since it is difficult to run the corporations depending on government subsidies, a committee headed by retired Additional Chief Secretary MR Srinivasa Murthy was constituted for restructuring the transport corporations. Taking a cue from the neighbouring state, the KSRTC Staff and Workers’ Federation also recently reiterated its demand to the committee to merge the road transport corporations (KSRTC, BMTC, NWKRTC and KKRTC) into one body.

Losses of the Corporation have continued for over 10 years now. After the entry of cabs, on-demand bike services and the Metro, the buses are carrying very few passengers. The Covid-induced slowdown then pushed the corporation into more losses. The BMTC needs immediate state support to survive the pandemic effect. And, this has to continue for a long term. The BMTC needs more funds to expand its capability to deliver services better. With this, it will be easier for the corporation to attract nonbus-users to buses, and thus cover more of its operational costs by itself. But this is not easy. Better understanding and strategizing will be needed” a BMTC senior official told News Trial.

According to reports, the Corporation was making profits between the years 1997-2012. In the year 2006-2007, it recorded an income of Rs 224 crore, the highest yet. Up until 2011, it continued to make profits of Rs 21-55 crore. The initial fall in revenue began in the year 2013-14 with a loss of Rs 147 crore, which continued into 2014- 15 at Rs 64 crore, 2015-16 at Rs 13 crore, 2016-17 at Rs 260 crore, 2017- 18 at Rs 216 crore, 2018-19 at Rs 349 crore and during 2019-20 it suffered a loss of over Rs 400 crore.

“Most routes are captured by cabs and the BMRCL’s Namma Metro, so the BMTC gets to carry fewer passengers. Also, recently they have pledged a bus terminal to clear employees’ funds. This shows how much the Corporation is getting into deeper trouble,” said Rajeeth, a bus commuter.