August 19, 2013
ANIL KUMAR SASTRY
Suffers loss Rs. 147 crore in 2012–13
The year 2012–13 witnessed the Bangalore Metropolitan Transport Corporation (BMTC) losing its recognition as the lone urban public transport entity earning profits, after it posted a loss Rs. 147 crore.
This is the first time that BMTC has suffered loss after its formation, except the Rs. 7.82-crore loss registered during the first year of its formation (1997–98). While it posted Rs. 3.96-crore profit in 1998–99, the earnings touched the peak (Rs. 224 crore) in 2006–07.
The fall in revenue began from 2008–09, coinciding with the rule of Bharatiya Janata Party in Karnataka. Its profit margins came down every successive year in the last five years: Rs. 55 crore in 2008–09; Rs. 65 crore in 2009–10; Rs. 50 crore in 2010–11, and Rs. 21 crore in 2011–12. During these five years, BMTC’s performance took a severe beating in all respects — right from procuring new buses to maintenance of existing fleet.
Creation of divisions
Unlike its sister corporations — Karnataka State Road Transport Corporation (KSRTC), North West KRTC and North East KRTC — which were functioning in a three-tier system — Central Office, Divisional Office and Depots, BMTC had two-tier system where depots were directly administered from the central office.
The management decided to introduce the three-tier system to increase operational efficiency in 2010–11 and created five divisions.
While workers and their unions termed this as an “attempt to decentralise corruption”, the management justified the move saying it would help tighten administration.
The suspicion of the workers was confirmed after the Lokayukta police