Kadamba Transport Corporation (KTC) has been in the news lately. From beginning trial runs of an electric bus on local routes in the state to launching 9 interstate routes with eight new buses. Last year too, it was nothing less. From ‘Manforce-driven’ buses which displayed Sunny Leone marketing condoms to promises of launching a biogas-run bus and two ethanol-powered buses and plans of around 40 such eco-friendly buses and 50 more running on compressed natural gas (CNG). Besides these, there are plans to begin KTC taxi services too, and shuttle services connecting the airport to key tourist destinations.
KTC appears ambitious and headed everywhere, but generating profits could still remain an issue. KTC, which has a 33 per cent coverage of the transport sector in Goa, has been providing connectivity from remote areas like Morpila to Mapusa and several other villages. These routes may not be viable but are run only out of public obligation and more out of service to the people. Private players have conveniently kept themselves out of these routes due to the huge operational costs and low response. There are also school trips totaling to nearly 185 per day spread across Goa where students are ferried. Here again, there is no element of profitability and is only undertaken as a service to schools.
On the positive side, KTC has been showing an increase in profits. Last financial year, they recorded almost 18 per cent spurt in revenue. But the biggest challenge remains of erasing the cumulative debts of Rs 60 crore. Besides the operational costs, the biggest expenditure head for the KTC is salaries which stood at around Rs 70 crore per annum and which is likely to go up to Rs 85 crore with the implementation of the seventh pay commission.
Close on the heels of the 8 interstate buses launched on Wednesday, there are five more Volvos which are in the pipeline connecting Goa to Bangalore and other major cities. However, although these interstate routes could bring in the moolah, this would not be enough to tide over the fortunes for KTC. Government should open up plans of developing its properties. The grandiose plans of a restructured KTC bus stand at Margao housing shopping centres and other establishments should take off immediately. KTC Chairman Carlos Almeida’s plans to develop 5 other locations, including the Marcel bus stand, is a step in the right direction.
While the KTC goes into top gear, the government must ensure that it doesn’t crush the businesses of private bus operators. Tourism-related businesses have been going out of the hands of Goans, just as in the case of tourist taxis. Government should engage the private bus operators here and work out a business model on the lines of the interstate system which was functional earlier.
Focus should not be only on buying new buses, but working in tandem where private buses operate government-managed buses on a profit-sharing basis. It may be recalled that for some inter-state routes, the government had worked out an agreement with private operators where ticket booking was controlled by the government while operations were handled by private players.
