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A presentation

By Dr K.N.Ingalagi, Chief Manager M I S,BMTC


04-12-2011

Why the problem of Financial Sustainability ? The last decade of twentieth century witnessed revolutionary change in the global economic scenario Results, The Public Sector Undertakings were opened to competition from protection and monopoly Pressure to generate internal resources for sustainability No investment support for technological up gradation Cry for privatisation Employment insecurity among employees

BTS / BMTC continuously incurred operational losses until 02-03, except 01-02. (-3.71 crores in 0203).
1992-93
0 -5 -10 -15 -20 -25 -30 -35 -40 -45 -50(Rs.

1993-94

1994-95

1995-96

1996-97

1997-98

-7.82

-29.89 -34.26
Crores)

-29.50 -36.97

-32.43

What were the challenges in the stake holders perspectives


Government: Threat of privatization, increased taxation, non-revision of fares on time, not much public investment on buses, no reimbursement of cost of all subsidized services Management: Resistance to expansion of fleet, fear of making losses, concern of nonofficial members, resistance to change, risk aversion and pro-status quo mindset, delay in project completion and lack of finance to buy land for depots and bus stands. Employees: Low morale and motivation level due to fear of privatization, lack of plan for skill development, high accident rates, high break down rates, lack of belongingness Commuters & Public: High level of commuter dissatisfaction, inadequate fleet and demand for more buses and quality buses, ensuring punctuality, aging fleet, low frequency, access to travel information, access to bus stops, high accident rates, high breakdown rates, hassle full ticketing, lack of mechanism to address public grievances, declining ridership numbers

How challenges were met?


Government challenges: Persuaded policy makers to spare BMTC from privatization and to give time for improvement. As a result, only Bangalore Metropolitan Transport Corporation was spared. Convinced the Government to sanction one time grant for introduction of 50 A/c(Volvo) buses for the first time in the country. Persuaded the Government to reimburse adequately for subsidized services on a scientific basis. Convinced the Government to sanction infrastructure grant of 93 crores over a period of five years for purchase of land and rolling stock for transport infrastructure. Efforts for timely revision of fares. Persuaded Central Government to sanction 333 crores for an innovative transport project called TTMCs in Bangalore under JNNURM.

How challenges were met?


The Board was persuaded to agree to operational reengineering: Board was persuaded to approve fleet expansion, expansion of depots, workshop and personnel to operationlise the fleet expansion plan. Assurance was given and blue print was prepared to make operational profit, maximize gross revenue and minimize cost of operations. Administrative reforms were introduced in the areas of procurement through tendering (chassis, diesel, security services, and house-keeping), Public Private Partnership (bus body building, hiring of buses), and introduction of prompt payment discount.

Management Challenges:

How challenges were met?


Management Challenges: (contd.)

Extensive use of IT solutions to manage costs. Innovative borrowing at low interest rates: FCNR loans, mega city funds, substitution of high cost loans, access to government project and infrastructure funds. Lower bus staff ratio with a prudent shift mix Interest income from deposits. Competitive tendering on e-platform. Consultancy services Utilization of empty space in depots during day time for coaching and training. Procurement of lands for future infrastructure. Surplus was maximized by augmenting commercial revenue in many fronts.

How challenges were met?

Challenges from employees:


Transparent recruitment policy, Employee darshan scheme: Managing Directors cell number available to all employees, any time they can talk, send email or meet at 3.00 pm daily. Strengthening of grievance attendance system. A policy of empathy without compromising discipline. Consultation with Union/s as per law. Extensive employee welfare programmes (MOU with 35 super specialty hospitals, creation of medical incapacitation and welfare fund, Janatha insurance scheme, hope line for sick employees with no medical leave left, strengthening of de-addiction drive, establishment of homeopathic clinics in depots and posting of more doctors, intensive medical check-up camps, timely release of ex-gratia) Comprehensive labour welfare schemes (marriage advance, interest free educational loan, ex-gratia payments, exclusive marriage hall for employees, strengthening of consumer, housing and credit societies, financial assistance for higher education)

How challenges were met?


Challenges from employees: (Contd.)

Employee skill development programme. (establishment of HRD department, skill development programmes for employee, management development programme for officers, involvement of NGOs (Rotary, Lions), RTO, Police and Judiciary in skill development, music and magic nights in depots to improve unity of purpose, strengthening existing talents of employees.). Compulsory visit to Singapore by each officer. HRD through inclusion of families of the employees. Free tuition to deceased employee dependants, publication of in house magazine, summer camp for employees and their spouse, job fairs for unemployed dependants of employees, free legal assistance for family problems.) Creation of Peer Group in depots for grievance resolution and check corruption in administrative matters. Decentralization of disciplinary powers from one Head of the Department to all for cutting down on delay. Appointment of a Chairperson from outside to deal with sexual harassment in workplace.

How challenges were met?


From commuters and public:

Commuter friendly initiatives and technology applications. Women specials, hospital special, pass special, and mall special buses. Expansion of sub urban services to help rural population to access to urban centre for children education and market for agriculture products. Enhanced access to slum dwellers through change in bus routes and providing bus stops near slums. More night services to help call centre workers and floating travelers. Introduction of daily, weekly and monthly passes with rain bow benefits on monthly passes. (any bus,, any time, any language) Constitution of Commuter Comfort Task Force to interact with traveling public and residents associations for timely feedback. Establishment of call centre. Publication of citizens charter, time tables and service pamphlets. Hosting of web site and home page, with printable time and route chart for each schedule.

How Challenges were met?

From Commuters and Public: (Contd.)


Introduction of Sarathy patrolling vehicles for ensuring driving discipline. Introduction of night services for safety of passengers coming from outside Bangalore Introduction of direction oriented services, grid routes, ring road services, hub and spoke routes to cut down travel time and improve accessibility to commuters. Enhancing distribution network of passes through post offices, banks, and private agents. A publicity campaign to persuade people to use bus mode to reduce decongestion and improve environmental quality. Connecting the Bangalore International Airport through Vayu Vajra.

Outcome of efforts for stake holders


For Government and Management:

Net worth went up from Rs 86.26 crores to 810.80 crores. Year end bank balance increased from Rs32 crores to Rs257 crores. Loan amount came down from Rs 47.79 crores to Rs 14.45 crores. Ridership went up from 26.75 lakh commuter trips per day to 38.50 lakhs commuter trips per day. Fares were kept lower than what Government had permitted. Wide spread popularization of passes made 50 % of traffic revenue come from the passes in the beginning of the month and there was no pilferage by anyone. Money also came in the beginning of the month. This was politically a win-win situation for the government. Land holding of the Corporation went up from 78.23 acres to 1344.15 acres. BMTC became one of the best performing Transport Corporation in the world, recognised by WB, ADB, EU, and UNCRD.

2006-07
Rs. In Crores

Ahmedabad

DTC

BEST

Chennai BMTC

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Outcome of efforts for stake holders


For Commuters and Public:

Fleet increased from 3036 to 5282, highest among the cities in terms of publicly owned buses. Average age of buses came down from 5.11 years to 4.38 years, making it the youngest fleet in India. Smoke emission checks went up from 28,589 checks to 44,641 checks. Daily passes and monthly passes enabled commuters to travel in any bus, any time with out having problems with conductors or crowded buses. Commuters not knowing Kannada did not have problems of interacting with the conductor. Travel in Autos and maxi cabs came down as the Commuters with passes preferred to go by bus. New Vajra and Vayu Vajra buses signalled class and style in bus travel, resulting in 71 % per cent of these commuters giving up two wheelers and cars. 310 semi-low floor, AC, Euro III Volvo buses will be running in the city by this year end, which is the largest of its kind in the entire country. Accident rate came down from 0.22 to 0.15 for each lakh Km., lowest among the cities in India. Public complaints came down by 33 %, 0.03 to 0.02 per one lakh passengers.

Outcome of efforts for stake holders


For Employees:

No strikes /stoppage buses by employees since 12 years

Privatization stopped. Employment generation: Employees strength in BMTC went up from 14356 to 25542 between 2003 to 2011 (net addition: 16,186) Morale went up. Payments of salary and dues were regular and through ECS.

BMTC: a highly charged and united workforce!

Group Life Insurance scheme coverage of Rs.3.00 lakh at the minimum premium of Rs.70/- per month, for the first time in the state and in the country. No financial implication for BMTC. Medically Incapacitated and Welfare scheme with security net benefit (Corpus of 18 corers): an alternative to earlier dismissals. Agreement with 35 leading hospitals to extend in-patient medical treatment to the employees with cashless facility: Employees loved it. Cut down red-tapism. Reduced absenteeism. Brought down cancellations. Compulsory medical check up for employees above 45 years.

Present Status
Daily (Nov- 2011)
We own We operate We perform We make We earn We carry 6104 buses 5896 bus schedules 13.00 lakhs service kms 79082 bus trips Rs 3.60 crore over 45.00 lakhs passengers

Infrastructure Bus Depots 35 Bus stations 47 Man power deployment: 33260 Bus staff ratio: 5.4

Modernization and branding of fleet

19 9 7- 9 8 8 0 43 . 0 0

Vestibule

Parisaravahini

Swaraj Mazda

Swaraj Mazda(A/C)

Bangalore Rounds

Vajra (Volvo)

Suvarna PHS

Vayu Vajra

BIG-10 Bus

Atal Sarige

Jn NURM buses

Marcopolo buses

Accumulated Losses / Profits


(As on 31st March)
Rs. Crores
6 2 5 .2 1 5 8 7 .5 5 5 6 0 .0 2

700 600 500

6 7 5 .5 6

4 6 0 .1 2

400 300 200 100


9 4 .8 1

2 6 1 .1 3

1 7 2 .0 7

1999-00

2000-01

2001-02
1 4 .6 7

0
- 1 2 .0 2 - 3 6 .4 4

200203

200304

200405

200506

200607

200708

200809

200910

201011

-1 0 0 -2 0 0

- 7 4 .4 3

Net Worth
(As on 31st March)
1100

(Rs. Crores)

1 0 7 1 .7 7 9 5 1 .6 6 8 9 2 .4 3 8 1 0 .8 0 6 8 3 .3 1

900

700

500

3 9 1 .0 9
300

2 6 1 .5 2 1 6 7 .3 9

100

3 1 .9 9 4 .0 6 1999-00
200001

5 8 .0 3
200102

8 6 .2 6

-1 0 0

200203

200304

200405

200506

200607

200708

200809

200910

201011

Passengers carried per day (in lakhs)

50.00
44.50 40.27

47.50

40.00
34.78 32.07 30.35

37.75

38.59

30.00
26.75 25.75 26.25 25.50 24.50 25.00

20.00
'97-98 '98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07--08 '08-09 '09-10 '10-11 *

Quality of Services
No. of breakdowns

8000
7241

7000 6000 5000 4000 3000 2000


5025

7111 6132

Rate per 10,000 kms

0.55

0.49 0.44
3520 3403 2854 2335 2948 2813 2952 2761 2204 1865

0.36

0.19

1000 0

0.15

0.12

0.12

0.12

0.09

0.08

0.07

0.05

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11

Bangalore Metropolitan Transport Corporation

Quality of Services

No of accidents
600
Rate per lakh kms
475 447 444 417 414 472 467 446 578

Numbers

637 565

556

500

456

400
0.32

302

0.29 0.26 0.26 0.23 0.22 0.22 0.18 0.16 0.14 0.15 0.15

300

200
'9798*

0.12

'98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07-08 '08-09 '09-10 '10-11

Popularising Public Transport

Bus Day is being observed on 4th of every month from 2010 for the citizens of Bangalore to leave their private vehicles at home and use public transportation for commuting. Traffic congestion reduced on the day. There has been a drop in the pollution levels on the day.

Procurement of buses under JnNURM Details of Funding GoI, GoK and BMTC
(Amount in Rs.Crores)
Particulars Purchase of 1000 buses Total Grants 303.07 GoI share (35%) 106.07 GoK share (15%) 45.46 BMTC share (50%) 151.53

(Amount in Rs.Crores)
No. of buses received Approve d cost (Rs. in crore) GoI share (35%) (Rs. in crore) GoK share (15%) (Rs. in crore) Released Amount (Rs. in crore) GoI 83.33 GoK 35.71 Balance Amount (Rs. in crore) GoI 22.74 GoK 9.75
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Total No. of buses approved

1000

1000

303.07

106.07

45.46

Procurement of buses under JnNURM

Traffic and Transit Management Centres (TTMCs) Under JNNURM Scheme BMTC is the first urban transport organization to get
JNNURM funding for a national pilot project for an innovative idea called TTMC

Construction of 10 Traffic and Transit Management centers was taken up. 9 out of 10 TTMCs have been commissioned and 10th TTMC will be commissioned shortly .

JNNURM PROJECT FINANCIAL SHARING DETAILS


Sl No Sanctioned Nam e of Project Cost at CSMC Delhi Cost (w ith Share of Tender GOI & GOK Prem ium ) Share of BMTC Date of Com pletion

1 2 3 4 5 6 7 8 9 10

Jayanagar Kengeri Bannerghatta Shanthinagar Vijaynagar Koramangala Domlur Whitefield Banashankari Yeshwanthpur Total (In Crore)

8.90 21.13 3.92 84.68 38.12 50.58 15.50 26.56 22.24 61.32 332.95

14.80 40.00 5.50 108.50 58.10 71.90 19.35 37.30 32.25 91.90 479.60

4.45 10.57 1.96 42.34 19.06 25.29 7.75 13.28 11.12 30.66 166.48

10.35 29.43 3.54 66.16 39.04 46.61 11.60 24.02 21.13 61.24 313.12

Aug-09 Jun-10 Jun-10 Aug-10 Aug-10 Sep-10 Sep-10 Oct-10 Oct-10 Nov-10

Completed Traffic Transit Management Centres

Jayanagar

Kengeri

Shanthinagar

Yeshavanthapur

Koramanagala

Vijayanagar

Financial Innovations
Cost Cutting Measures adopted:
Swapping of high cost loans and Foreign Currency Non Resident loans Introduction of Prompt payment Discount for chassis and other suppliers Introduction of e-tendering Tendering of chassis procurement Tendering of Diesel procurement Consultancy and recruitment for other departments. Price negotiations Auctioning of vehicles on running condition

(1997-98 to 2010-11)

Rs. In crore

97-98*

(As on 31st Jan-10)


* From 15-08-1997

PAC appreciated efforts to reach out to the slums through rerouting and creation of more bus stops and branding.
The Third Citizens Report Card on Bangalores Public Service brought out by Public Affairs Centre rates BMTC on the top with 96% Overall Citizens Satisfaction

Report : Business Today February 20 2011

List of Awards received by BMTC after bifurcation


Year 1997-98 1999-00 1999-00 1999-00 2000-01 2000-01 2000-01 2001-02 2001-02 2002-03 2002-03 2002-03 Awards Second best performance for National Productivity Council Award 1997-98 by ASRTU Road Safety Award 2000 by ASRTU Maximum improvement in Engine Oil KMPL Award 2000 by ASRTU Minimum Operational Cost Award 2000 by ASRTU Oil Conservation fortnight 2001 Runner up Trophy for maximum improvement in KMPL Award 2000-2001 Award for Minimum Operational Cost Transport Minister Award for Road Safety Road Safety Award 2001 by ASRTU Minimum Operational Cost Award 2001 by ASRTU UITP Asia Pacific Award for outstanding achievements in the field of affordable public transport. Transport Road Safety Award (City Service) Award for Fuel Efficiency (City & Hill Service)
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Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12

(City Service) (City Service)

List of Awards received by BMTC after bifurcation (Contd)


13 14 15 16 17 18 19 20 2002-03 2002-03 2003-04 2003-04 2003-04 2003-04 2005-06 2005-06 Award for Minimum Operational Cost Award for Performance of Lubricant Oil Award for Lowest Operational Cost (Urban)- Winner Transport Minister Trophy for the State Road Transport Undertakings with Lowest Accident Record for the period 1999-2002 Vehicle Productivity Award for maximum improvement (Winner-City Services) Tyre Performance Award for Highest Performance (Winner-City Services) Golden Peacock special commendation certificate for the year 2005 Transport Minister Trophy for the State Road Transport Undertakings with Lowest Accident Rate for the period 2003-04(Winner-Urban category) Vehicle Productivity Award for maximum improvement (Winner-City Services) for the year 2003-04 Tyre Performance Award for Highest Performance (Winner-City Services) for the year 2003-04 Transport Minister Trophy for the State Road Transport Undertakings with Lowest Accident Rate for the period 2004-05(Winner-Urban 35 category)

21 22

2005-06 2005-06

23

2006-07

List of Awards received by BMTC after bifurcation (Contd)

24 25 26 27 28 29 30

2006-07 2006-07 2007-08 2007-08 2007-08 2008-09 2008-09

Tyre Performance Award for Highest Performance (Winner-City Services) for the year 2004-05 International Gold Star Millennium Award, Bangkok Award for vehicle productivity (Urban Services) for the year 2005-06 Award for Fuel Efficiency (Urban Services) for the year 2005-06 Citizen Extraordinaire Award 2008 Prime Minister Civil Service Excellence Award 2009 Transport Minister Trophy for the State Road Transport Undertakings with Lowest Accident Rate for the year 2005-06 (Winner-Urban category) Transport Minister Trophy for the State Road Transport Undertakings with Lowest Accident Rate for the year 2006-07(Winner-Urban category) Winner of Minimum Operational Cost Award for 2006-07 by ASRTU Winner of Minimum Operational Cost(Without the Element of Tax) Award for 2007-08 by ASRTU Chief Ministers Annual Ratna Award International UITP-ITF award for outstanding innovations in Public 36 Transport for the year 2009-10

31 32 33 34 35

2008-09 2008-09 2009-10 2009-10 2010-11

List of Awards received by BMTC after bifurcation (Contd)

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2010-11

Safety Convention Award 2010 by Institute of Engineers (India) for innovative safety measures

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Transport Minister Trophy for the State Road Transport 2010-11 Undertakings with Lowest Accident Rate for the year 200708(Winner-Urban category) 2010-11 Urban Mobility Award 2010-Award for Excellence by Ministry of Urban Development on 5-12-2010

38

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Best Practices Award 2010 by City Managers Association 2010-11 Karnataka (C-MAK) for Commuter Beneficial Schemes and Pass System on 1-2-2011 2010-11 Namma Bangaluru Award 2010 for Outstanding contribution to Bangalore city on 9-2-2011

40

41

UITP- Asia Pacific First Regional Service improvement Award2010-11 2011 in the field of Public Transport in Bangalore Metropolitan area.

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Thank You

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