NE Report

Report on North East Karnataka Road Transport Corporation
Prof. T. Venkata Ramanayya Prof. G. Ramesh
INDIAN INSTITUTE OF MANAGEMENT BANGALORE March 2008
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________
Chapter 1 Introduction
The Karnataka State Road Transport Corporation (KSRTC) was set up in the year 1961 and it was bifurcated into three corporations for better management.. 1. Bangalore Metropolitan Transport Corporation, Bangalore on 15th Aug 1997, 2. North-west Karnataka Road Transport Corporation, Hubli on 1st Nov 1997 and 3. North-East Karnataka Road Transport Corporation, Gulbarga on 1st Oct 2000. North-East Karnataka Road Transport Corporation (NE-KnRTC) has jurisdiction over 5 districts of Karnataka state Viz. Bidar Gulbarga Bellary Raichur and Koppal BMTC operations are limited to BHRUHAT Bangalore areas. Each corporation enjoys functional autonomy. However, the MD of KSRTC provides overall policy guidelines with respect to fares, purchases and over all seniority of employees. One of the compelling reasons, according to the officials of the corporation for constituting three independent road transport corporations was to bring in competitive efficiency in their functioning and transform them into profit making entities. But that seems a non-achieving task as things stand now. Private Operators are allowed to operate in few districts of Karnataka. The public transport services have to provide better facilities and efficient services to detain their revenue shares
Indian Institute of Management Bangalore
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ to keep the corporation financially in good health. However, it was reported that private operators resort to reduced prices to the commuters to get commuters into their fold. Though there may be some short time gains to commuters with the services of the private operators, the total view of sustainable services and facilities to the commuters will be at stake in the long run. This study has its focus on these points. 1. Economic viability of the corporation and 2. Best service and facility providing organization.
The objectives of the study are as follows. Comparative analysis of NE-KnRTC and other sister organizations in public sector in respect of physical, financial and social aspects Conducting state holders responses (Commuters, Opinion Makers and Employees) belonging to different groups A Comparative analysis of facilities provided by the Public Transport and Private Operators to the commuters Travel features of the public and their experiences and expectations of these public and private services. Suggestions by the public to improve the existing services in terms of additional routes, controls
Chapter 2 Secondary Data Analysis

The operations of the corporation (NE-KnRTC) are compared with other three corporations of Karnataka state (KSRTC, NW-KnRTC and BMTC) and two other corporations of Punjab (PSRTC) and Maharashtra (MSRTC). The comparison is done with respect to Fleet utilization Bus utilization BSR and other productivity measures Quality of services in terms of accident rate per lakh km Traffic and Non Traffic Revenue in percentage terms Revenue and Cost per Km. Cost components of fuel, spare parts etc. Operations Ratio 2.1 Fleet utilization The fleet utilization of NE-KnRTC, which is the proportion of buses put on road to the buses held, has decreased from 100% to 95% over three year period and this percentage of fleet utilization in other corporations is also varying over periods too. Compared to some of the corporations viz. Mizoram ST (50.7%) and Tripura RTC (54.4%) in 2006-07 those have around 50% fleet utilization, the selected STRCTs are consistent over their fleet utilization efforts. These variations are clearly presented in the Figure 2.1.
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 2.1 Fleet Utilization (%) NWMSRTC KSRTC KnRTC 95.50 95.10 95.80 94.40 94.70 94.90 94.20 92.40 93.00 Figure 2.1
Fleet Utilisation (%)
105 100 95 90 85 80 75
PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC SRTC Fleet Utilisation (%)
Year
PSRTC 2004-05 84.30 2005-06 85.00 2006-07 95.30
NEKnRTC 100.00 95.50 95.40
BMTC 95.00 95.60 94.40
2004-05
2005-06
2006-07
2.2 Bus utilization Bus utilization indicates the extent of buses used for operating effective kms. The daily bus utilization of NE-KnRTC has improved from 306 Kms/Bus in 2004-05 to 318 Kms/Bus in 2006-07.KSRTC has maintained consistency in its bus utilization and stands in a better position even compared to other corporations in consideration. BMTC, operating in urban and semi urban areas has values in the range of 217-219 in last three years period. The Figure 2.2 vividly shows the variations among the SRTCs.
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 2.2 Daily Bus Utilization Year PSRTC 2004-05 206.50 2005-06 182.70 2006-07 325.40 MSRTC 308.70 299.30 309.60 KSRTC 348.10 340.60 334.40 NW-KnRTC 377.90 309.20 307.80 NE-KnRTC 305.60 303.10 317.60 (Kms/Bus) BMTC 219.10 217.90 217.40
Figure 2.2
Daily Bus Utilisation of buses held by the selected SRTCs
400 Daily Utilisation (Kms/Bus) 300 200 100 0 PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC STRC 2004-05 2005-06 2006-07
2.3 Average age of bus (Yrs) The age profile of the bus normally determines the optimum utilization of the bus in public service. The rural STUs are reported having 5.19 years of average age in 2006-07. NE-KnRTC has 5.58 lakh of kms of use in 2006-07, which is short of nearly one lakh kms compared to its use in 2004-05.
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 2.3 Average Age of Bus (Yrs) Year MSRTC 2004-05 5.38 2005-06 4.78 2006-07 5.09 * in lakh kms KSRTC* 4.23 4.1 3.88 NW-KnRTC* 5.68 6.04 5.35 NE-KnRTC* 6.51 5.56 5.58 BMTC 3.47 4.47 4.31
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Figure 2.3
Average Age of buses(Yrs) in the selected SRTCs
7.00 Average Age of Buses (Yrs) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 MSRTC KSRTC NW-KnRTC SRTC 2004-05 2005-06 2006-07 NE-KnRTC BMTC
2.4 Percentage of over aged buses The percentage of over aged buses in NE-KnRTC and NW-KnRTC are 37.6 and 36.10 in 2006-07 respectively. This requires an immediate attention to improve the quality and comfort of travel in the region. Other corporations in the study are having 4%12% of over aged buses. The frequent breakdowns and discomfort in the bus to the passengers can force passengers shifting from public transport to alternative mode of transport in their vicinity. Table 2.4
Percentage of Over aged Buses

Year 2004-05 2005-06 2006-07 MSRTC 9.40 4.95 4.41 KSRTC 12.10 13.40 11.70 NW-KnRTC 29.20 37.50 36.10 NE-KnRTC 37.10 37.00 37.60 BMTC 1.79 5.65 5.04
Figure 2.4
Percentages of overaged buses in the selected SRTCs
40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 MSRTC KSRTC NW-KnRTC SRTC 2004-05 2005-06 2006-07 NE-KnRTC BMTC
2.5 BSR and other productivity measures Fuel efficiency is measured in terms of average kms obtained per litre of HSD oii and is denoted asd KMPL. In 2006-07, the average KMPL of the reporting STUs is 4.97 and rural STUs have a value of 5.12 KMPL. NW-KnRTC and NE-KnRTC have 5.23KMPL and 5.45 KMPL in 2006-07. NEKnRTC has improved the fuel performance (KMPL) over these three years period. Figure 2.5 shows the comparison of fuel performance of various SRTCs over these three periods. Productivity measures like Staff per bus on-road, Effective Kms per staff per day, and Fuel Performance (Km/pl) have shown that NE-KnRTC is good enough to maintain comparable values with other corporations. Fuel performance of the corporations NW-KnRTC and NE-KnRTC buses is even better and consistent when compared with other corporation figures.
Percentage
Table 2.5 Fuel Performance (KMPL) in selected STRC s NWNEYear Parameters PSRTC MSRTC KSRTC KnRTC KnRTC 2004-05 6.58 6.71 5.75 6.51 4.25 Staff per bus 2005-06 8.03 6.87 5.10 5.31 4.68 on-road 2006-07 5.19 7.00 5.22 5.53 4.69 2004-05 37.21 48.18 63.70 60.57 71.89 Effective. Kms per 2005-06 26.75 46.13 70.43 61.40 67.87 staff per day 2006-07 64.52 46.95 69.40 59.78 70.91 2004-05 4.30 4.85 5.28 5.36 5.44 Fuel Performance 2005-06 4.40 4.89 5.13 5.25 5.44 (Kmpl) 2006-07 4.69 4.93 5.07 5.23 5.45
BMTC 5.03 5.00 5.19 45.87 45.59 44.39 4.74 4.66 4.55
Figure 2.5 Fuel Performance (KMPL) in selected STRCs

6.00 5.00 4.00 PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC 2004-05 2005-06 2006-07
KMPL
3.00 2.00 1.00 0.00
Year
2.6 Quality of services in terms of accident rate per lakh km The average rate of accident in rural STUs is 0.17 and in urban STUs is 0.34 in 2006-07 for all STUs. The accident rate in Punjab has jumped to a higher value in 2006-07 and Maharashtra continues with high rates through out these years. NE-KnRTC has an accident rate of 0.13 per lakh km in 2006-07. The quality of service improves if STUs can achieve zero accidents in their service operations. Table 2.6 Accidents Per Lakh Kms MSRTC KSRTC NW-KnRTC 0.18 0.16 0.13 0.20 0.18 0.13 0.19 0.16 0.15
Year 2004-05 2005-06 2006-07
PSRTC 0.07 0.06 0.24
NE-KnRTC 0.09 0.10 0.13
BMTC 0.19 0.17 0.14
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2.7 Traffic and Non Traffic Revenue in percentage terms The percentage of traffic revenue of NE-KnRTC to total revenues is 92.82 in 2006-07 and in contrast to KSRTC, it is constantly increasing this proportion of revenue from traffic handling over the periods. Since this portion of revenue is an indicator of popularity of the services, NE-KnRTC has to move in the direction of improving the services in quality and quantity. Table 2.7
Year 200405 200506 200607
Traffic and Other Revenues (%) to Total Revenues in the selected SRTCs PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC Traffic Others Traffic Others Traffic Others Traffic Others Traffic Others Traffic Others 92.61 90.07 96.25 7.39 9.93 3.75 97.26 97.87 97.08 2.74 2.13 2.92 89.6 93.57 94.32 10.4 6.43 5.68 93.21 94.7 86.65 6.79 5.3 13.35 94.7 94.93 92.92 5.3 5.06 7.08 94.7 94.93 92.92 5.3 5.06 7.08
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Traffic and other Revenues (%) to Total Revenue in the selected SRTCs
2004-05 2005-06 2006-07
120 100 80 60 40 20 0
Traffic Others Traffic Others Traffic Others Traffic Others Traffic Others Traffic Others PSRTC M SRTC KSRTC NW-KnRTC NE-KnRTC BM TC
2.8 Cost components of Personnel, Fuel, and Spare parts etc Even though NE / NW KRTC s are experiencing losses, the physical and financial components analysis with respect to Parent KSRTC and with two other Transport Corporations clearly indicate that they are efficiently running their buses. Poor financial performance is attributable to competition from private operators and the low traffic density routes. They can improve their financial performance by scientific Routing and Scheduling, increasing the share of Inter District and Intra State through the addition of Volves, deluxe buses etc. The share of cost components to the total cost over three years for the NE-KnRTC is presented in the Figure 2.8.
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Table 2.8 Selected Corporations - Percentage of cost components to total cost Cost Components (%) Personnel Fuel & Lubricants Tyres & Tubes Spare Parts Interest Depreciation Total Taxes Others Total Cost (Paise/Km) Year 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 PSRTC 43.60 46.28 33.58 22.03 20.17 30.91 1.29 0.94 2.27 2.72 2.47 2.33 1.20 1.41 3.22 1.35 1.28 1.90 21.13 20.30 15.26 6.68 7.14 10.53 2142.60 2693.30 1967.00 MSRTC KSRTC 35.78 33.82 34.37 27.20 33.93 25.47 34.81 33.58 37.02 38.25 37.60 40.74 2.45 2.93 2.14 3.04 2.97 3.68 2.08 1.54 1.78 1.70 2.31 2.51 1.74 1.53 1.77 2.09 1.88 1.74 5.52 8.67 5.39 8.90 4.76 9.73 13.86 7.12 13.87 7.34 13.65 7.52 3.77 10.80 3.66 11.48 2.89 8.62 1720.70 1485.90 1937.50 1623.30 2031.90 1756.20 NW-KnRTC 31.85 32.87 29.67 32.08 35.44 40.48 2.84 2.90 3.34 2.31 1.78 1.62 2.06 1.41 2.23 5.85 5.39 6.08 5.40 5.98 6.04 17.61 14.22 10.52 1359.00 1584.10 1600.00 NE-KnRTC BMTC
26.14 34.64 25.62 32.70 25.25 32.55 24.39 29.31 28.42 35.31 32.86 39.32 2.76 1.32 2.39 1.47 3.10 1.70 1.48 1.96 1.35 2.68 1.38 2.37 1.16 0.38 1.06 0.49 1.25 0.27 3.48 7.55 3.58 6.79 4.76 7.09 2.22 5.72 6.68 5.48 6.65 6.15 38.37 19.12 30.92 15.09 24.74 10.54 1384.70 1655.20 1518.10 1815.40 1583.80 1958.20
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 2.9 Revenue and Cost per Km The differences between revenue and cost per Km of Punjab and Maharashta RTCs and NE-KnRTC over 2004-05 to 2006-07 are negative. KSRTC and BMTC are able to maintain a healthy trend of relationship between revenue and cost over these periods. These observations are presented in a graphical form (Figure 2.9) Table 2.9 Revenue and Cost (Paise per Km) in selected State Road Transport Corporations PSRTC MSRTC KSRTC NW-KnRTC NE-Knrtc BMTC Year Rev. Cost Rev. Cost Rev. Cost Rev. Cost Rev. Cost Rev. Cost 2004-05 1425 2143 1659 1721 1534 1486 1324 1359 1299 1385 1924 1655 2005-06 1796 2693 1902 1938 1652 1623 1439 1584 1436 1518 2173 1815 2006-07 1882 1967 2058 2032 1804 1756 1625 1600 1544 1584 2580 1958
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Revenue and Cost (Paise per Km ) in selected State Road Transport Corporations
2004-05 2005-06 2006-07
3000
2500
2000
1 500
1 000
500
P SRTC
MSRTC
KSRTC
NW-KnRTC
NE-Knrtc
BMTC
S tate Road Transport C orporation
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 2.10 Operations Ratio This ratio indicates the efficiency of management. The smaller the ratio the greater the organization's ability to generate profit if revenues decrease. In railroading, an operating ratio of 80 or lower is considered desirable. The corporation has values of 102.72% and 101.69% in 2005-06 and 2006-07 respectively. When compared to other corporations with an exception of NW-KnRTC, this value is on higher side in 2006-07 as clearly shown in the Figure 2.10 Table 2.10 Operating Ratio (%) of the selected SRTCs (2004-05 to 2006-07) PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC 113.1 80.09 77.69 76.08 61.66 65.37 130.33 87.81 95.12 107.65 102.72 85.82 88.52 85.9 93.68 104.24 101.69 83.64
Year 2004-05 2005-06 2006-07
Figure 2.10
Operating Ratio (%) of the selected SRTCs
140 120
Percentage
100 80 60 40 20 0 PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC
SRTC 2004-05 2005-06 2006-07
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 2.11 Summary and Conclusions Fleet utilization of NE-KnRTC, which is the proportion of buses put on road to the buses held, has decreased from 100% to 95% over three years and this percentage of fleet utilization in other corporations is also varying over periods too. Daily bus utilization of NE-KnRTC has improved from 306 Kms/Bus in 2004-05 to 318 Kms/Bus in 2006-07. The age profile of the bus normally determines the optimum utilization of the bus in public service. NE-KnRTC has 5.58 lakh of kms of use in 2006-07 which is short of nearly one lakh kms compared to its use in 2004-05. Fuel efficiency of NW-KnRTC and NE-KnRTC are 5.23 and 5.45 KMPL in 2006-07 respectively. NE-KnRTC has improved its fuel efficiency compared to NWKnRTC. Productivity measures like Staff per bus on-road, Effective Kms per staff per day, and Fuel Performance (Km/pl) have shown that NE-KnRTC is good enough to maintain comparable values with other corporations. Fuel performance of the corporations NW-KnRTC and NE-KnRTC buses is even better and consistent when compared with other corporation figures. The average rate of accidents in rural STUs is 0.17 and in urban STUs is 0.34 in 2006-07 for all STUs. NE-KnRTC has an accident rate of 0.13 per lakh km in 2006-07. The quality of service improves if STUs can achieve zero accidents rate in their service operations. The percentage of traffic revenue of NE-KnRTC to total revenues is 92.82 in 2006-07. Since this portion of revenue is an indicator of popularity of the services, NEKnRTC has to move in the direction of improving the services in quality and quantity. Poor financial performance is attributable to competition from private operators and the low traffic density routes. They can improve their financial performance by
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ scientific Routing and Scheduling, increasing the share of Inter District and Intra State through the addition of Volves, deluxe buses etc. The differences between revenue and cost per Km of NE-KnRTC over 2004-05 to 2006-07 are negative like Punjab and Maharashta corporations. The operation ratios of NEKSRT are 102.72% and 101.69% in 2005-06 and 2006-07 respectively. Compared to other corporation this value is on higher side in 2006-07 and the efficiency of management will be higher if this value is below 80%.
Chapter 3 Stake Holders Responses
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The opinion survey involves 1) Passengers, 2) Opinion Makers and 3 Employees of the organization Employee Survey ascertains the present employment conditions of the employees, the existing state of the transport services and the possible improvements to compete with the private transport services coexisting in the areas. Opinion Makers Survey studies about the state of public transport services in comparison with private transport services and possible suggestions to improve them along with the socio-economic details of the opinion makers. Passengers Survey elicits the experiences of regular public transport services in relation with the private transport services highlighting the facilities and comforts provided by the two services. The socio-economic status of the passengers is collected to qualify the opinions expressed by them in the survey. Table 3.1 Stakeholders and Sample sizes in the districts Stakeholders Passengers Opinion Makers Employees Gulbarga 301 102 101 Districts Bidar 298 101 103 Bellary 301 109 101 Total 900 312 305
3.1 Passengers 3.1.1 Socio-economic Characteristics of the Passengers
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Passengers to the extent of 98% of 900 passengers are male members in the survey and residential status wise 86% of them come from rural areas and 14% from urban areas. A large number of passengers (57%) belong to 20-35 years age group followed by 30% of them belonging to 35-50 years. Only 2% of the respondents are illiterate and 68% of them have primary and high school level education. A good percentage of them (26%) are graduates. The quality of the survey highly dependent on the ability of the participants to express their opinions on various aspects of travel related issues well supported by their experiences. Income wise 59% of the respondents have Rs.2001-5000 monthly family earnings and 27% of them have Rs.5000-10000 monthly family earnings. Dependency on the public or private transport services has a bearing on the occupation and location of the people. The major occupations of the passengers are Agriculture (50%), Service (16%) and Business (14%) and Students (6%). Please refer Appendix A3.1 for details. 3.1.2 Usage of Transport Services Only 6% of the respondents are holding bus seasonal passes to commute regularly and most of these pass holders are students. The average distance traveled by the pass holders is 35 Kms and the average distances in divisions are Gulbarga - 19 Kms, Bidar - 32 kms and Bellary 56 Kms. It is stated that normally they make use these passes for 2-3 years and 13% of the respondents [11% in Gulbarga, 15%in Bidar and 12% in Bellary) have one family member in possession of this pass and in general only 1% of them have more than one pass in a family. 3.1.3 Travel Features
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ As reported by the passengers at the time of the interview, they have spent on an average Rs. 23 to present trip (completed or in progress) and the related figures for divisions are Rs.23 (Gulbarga), Rs.23 (Bidar) and Rs.24 (Bellary). The frequency of travel in a month varies highly among divisions. About 41% of the passengers have traveled less than 5 times in a month and 49% of them have traveled between 6-10 times in a month. Only 4 % passengers have traveled more than 15 times in a month. Passengers in Gulbarga and Bellary divisions have more movement in month. The travel made by the passengers within city is mostly by NE-KnRTC services and only 2% of them have used private bus service for intercity travel. Very common mode of travel is by ordinary Bus service (67%) and Express Bus (30%) and only 3% of the respondents used RAJAHAMSA bus service. 81% of respondents in Bellary frequently use ordinary bus services.
Table 3.2 Frequency of traveling in a month
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Frequency of traveling in a month Less than 5 times 6-10 times 11-15 times More than 15 times NO Answer Total Gulbarga 108 35.88 170 56.48 12 3.99 10 3.32 1 0.33 301 Table 3.3 Traveled mostly in Intercity Traveled mostly in Intercity Ordinary Express Rajahamsa Iravata(Volvo) Pvt. Operator Total Gulbarga 173 57.48 119 39.53 9 2.99 0 0.00 0 0.00 301 District Bidar 189 63.42 102 34.23 3 1.01 1 0.34 3 1.01 298 Bellary 243 80.73 47 15.61 11 3.65 0 0.00 0 0.00 301 Total 605 67.22 268 29.78 23 2.56 1 0.11 3 0.33 900 District Bidar 155 52.01 104 34.90 11 3.69 16 5.37 12 4.03 298 Total Bellary 104 34.55 170 56.48 16 5.32 10 3.32 1 0.33 301 367 40.78 444 49.33 39 4.33 36 4.00 14 1.56 900
N Col. % N Col. % N Col. % N Col. % N Col. %
N Col. % N Col. % N Col. % N Col. % N Col. %
3.1.4 Popularity of NE-KnRTC service Since the passengers favor NE-KnRTC buses as indicated earlier, the passengers should have some strong and valid reasons to make use of these services.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ The important reasons mentioned to travel in NE-KnRTC in all divisions are 1. It is the safest, 2. It is run by a Government Corporation The third reason in order of importance is they have no better alternative. Cost of travel, Concessions offered and Travel timing do not find front positions among all passengers. Table 3.4 Reasons why people travel in NE-KnRTC by Districts Reasons to travel in NEDistrict Total KnRTC Gulbarga Bidar Bellary Number Rank Number Rank Number Rank Number Rank 1. They have no better alternative 2. It is the safest 3. It is the most comfortable 4. It is the most convenient in terms of timing 5. It is the cheapest 6. It is run by a Government Corporation 7. It offers concessions to the needy 177 252 92 162 141 244 22 3 1 6 4 5 2 7 164 270 201 160 133 217 70 4 1 3 5 6 2 7 240 227 118 150 141 232 62 1 3 6 4 5 2 7 581 749 411 472 415 693 154 3 1 6 4 5 2 7
3.1.5 Importance given to some travel attributes The first 3 travel attributes as expected by the passengers are 1. Passenger Friendly behavior of the Staff
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 2. Travel Duration (Journey time) 3. Safety of the Journey Though there are slight variation and order in divisions we state that safety of the journey and friendly behavior of the crew are important travel attributes.
Table 3.5 Order of importance to travel attributes by passengers by district Travel attributes District Gulbarga Bidar Passenger Friendly behavior of the Staff 1 2 Travel Duration (Journey time) 2 3 Safety of the Journey 3 1 Reliability of Service 4 4 Facilities in Bus Shelter/Stand/Terminus) 5 6 Comfort in the Bus 7 5 Time of the Schedule 6 8 Fare (Cost of the Ticket) 8 7
1 2 3 4 5 6 7 8
Bellary 1 2 5 4 3 6 8 7
3.1.6 Quality of NE-KnRTC Services Listing a set of desirable attributes of quality of services from NE-KnRTC, the passengers are asked to mark their opinion on 5 point scale (Very Poor, Poor, Average, Good, and Very Good). Since the opinions on the extreme points account to less than 10% in the sample, the extremes are clubbed together and the attributes can be grouped into three based on the percentage of responses.
A. Satisfied Handling of Luggage Punctuality
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Speed
B. Comfortable Frequency Facilities in Bus Shelter/Stand/Terminus Seat Availability Comfort in the Bus
C. Need Improvement Fare (Cost of the Ticket) Reliability Convenient Timings Table 3.6 Opinion about the attributes of the quality services Opinion of the respondent Attribute of the quality service Poor Average Good Punctuality 15.89 37.67 46.44 Speed 23.45 36.56 40 Frequency 31.11 40.67 28.22 Seat Availability 31.78 34.78 33.44 Fare (Cost of the Ticket) 52.44 29.67 17.89 Reliability 44.33 34.89 20.78 Convenient Timings 46.22 32.67 21.11 Comfort in the Bus 31 37.56 31.45 Facilities in Bus Shelter/Stand/Terminus 35.89 28 36.11 Handling of Luggage 22.22 25.89 51.89
Sl. No 1 2 3 4 5 6 7 8 9 10
3.1.7 Behavior of NE-KnRTC staff The perception of passengers regarding the staff behavior in the working relationship with them is above average.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Their opinion about the attitude of the staff related to 1. Courtesy, 2. Honesty: Returning small change and discipline in stopping when required are above average. It is desirable some improvement in staff behavior in respect of two aspects 1. Helpful to: Women, Elderly and Children, and 2. Honesty: Diligently issuing Tickets Study of apparent variations in these aspects of staff behavior within the divisions will be helpful to address and improve for the betterment of relationships of NE-KnRTC with the public. Some notable improvements required in divisions are Gulbarga division - Discipline in stopping when required are above average Bellary division 1) Courtesy, 2) Honesty: Returning small change, 3) Honesty: Diligently issuing Tickets, and 4) Helpful to: Women, Elderly and Children.
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Table 3.7 Opinion about the behavior of NE-KnRTC Staff Opinion Attributes of Staff behavior Poor Average Courtesy 13.67% 42.22% Honesty: Returning small change 19.11% 34.67% Honest: Diligently issuing Tickets 21.11% 37.78% Helpful to: Women, Elderly and Children 29.00% 37.67% Discipline in stopping when required 19.89% 37.56%
No. 1 2 3 4 5
Good 44.11% 46.22% 41.11% 33.33% 42.55%
3.1.8 Breakdowns of NE-KnRTC services It is noticeable that breakdown of NE-KnRTC bus services are common experience of the passengers both general observation and personal experience ways. The response is assertive to a query whether they have noticed any breakdown of NE-KnRTC service and the percentages are Gulbarga (36%), Bidar (36%) and Bellary (37%) in that direction. The frequency of these bus breakdowns is largely noticed in Gulbarga. About 15% of responses attribute that the breakdown occur most frequently. Even the personal experience of the passengers regarding bus breakdowns is also alarming in all divisions. The most significant reasons for breakdown appear to be the poor maintenance of vehicles and followed by bad condition of roads. This is equally true in all divisions. The main factor influencing pilferage in collection is the nexus between the conductor and passenger as revealed by the passengers. The pilferage continues without any hindrance in the poor or reduced vigilance by NE-KnRTC.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.8 Whether noticed any breakdowns of NE-KnRTC Response Yes No Gulbarga 108 35.9% 193 64.1% 301 District Bidar 108 36.2% 190 63.8% 298 Bellary 110 36.5% 191 63.5% 301 Total 326 36.2% 574 63.8% 900
N Col. % N Col. % N
Table 3.9 Frequency of breakdowns noticed Frequency of breakdown Most Frequently Sometimes Rarely Sample size Gulbarga 40 22.3% 136 76.0% 3 1.7% 179 Table 3.10 Did you face any Bus breakdowns District Gulbarga Bidar N 108 110 Col. % 35.9% 36.9% N 193 188 Col. % 64.1% 63.1% N 301 298 District Bidar 13 6.1% 199 93.4% 1 0.5% 213 Bellary 52 17.3% 242 80.4% 7 2.3% 301 Total 105 15.2% 577 83.3% 11 1.6% 693
N Col. % N Col. % N Col. % N
Yes No Sample size
Bellary 111 36.9% 190 63.1% 301
Total 329 36.6% 571 63.4% 900
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.11 Order of reasons for breakdown (Most significant to Least Significant) 1 2 3 4 Poor Bad Conditions of Aged Rude Handling by Gulbarga Maintenance of Road Vehicle Driver Vehicle Poor Bad Conditions of Aged Rude Handling by Bidar Maintenance of Road Vehicle Driver Vehicle Poor Bad Conditions of Aged Rude Handling by Bellary Maintenance of Road Vehicle Driver Vehicle Poor Bad Conditions of Aged Rude Handling by All Maintenance of Road Vehicle Driver Vehicle Division
Table 3.12 Division Gulbarga Bidar Bellary All Ranking of factors influencing pilferage in collection 1 2 3 4 Conductors behavior Poor vigilance by Passengers Inadequate fines (not issuing tickets) NE-KnRTC attitude (not for ticket less buying tickets) travel Passengers attitude (not Passengers attitude Poor vigilance Inadequate fines buying tickets) (not buying tickets by NE-KnRTC for ticket less travel Conductors behavior Poor vigilance by Passengers Inadequate fines (not issuing tickets) NE-KnRTC attitude (not for ticket less buying tickets) travel Conductors behavior Poor vigilance by Passengers Inadequate fines (not issuing tickets) NE-KnRTC attitude (not for ticket less buying tickets) travel
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.1.9 Patronage of NE-KnRTC buses over Private transport operators Only 4% of passengers have not traveled in private buses and NE-KnRTC buses as well as Private buses are equally availed by the passengers. Private Operators score high reputation in respect of the following quality services 1. Better quality entertainment like music/video, 2. Cost effectiveness - Reasonable fare, NE-KnRTC services are good in providing better facilities than the private operators in respect of 1. Leg room between seats 2. Convenient places for boarding 3. Convenient places for alighting 4. Comfortable Seating 5. Courteous and well-mannered crew/staff 6. Convenient stops during the journey for snacks/coffee/lunch/dinner 7. Driving is smooth and safe and less of rash driving There is no difference between the two agencies in providing the following facilities to the passengers 1. Cleanliness of interior 2. Cleanliness of exterior Perception of the passengers is divided in respect of the following facilities. However, NEKnRTC appears to be well off over the private operators. 1. Convenient departure and arrival timings 2. Easy ticketing facility 3. Passengers need based stops for relaxation and attending toilet requirements 4. Less travel time 5. Easy placement of luggage
A. NE-KnRTC Buses
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Variations exist among the divisions in respect of the following facilities provided by NEKnRTC Buses. Division name is mentioned where the particular facility significantly differs from average value of the entire sample. 1. Passengers need based stops for relaxation and attending toilet requirements Gulbarga and Bellary 2. Easy ticketing facility - Bellary 3. Less travel time - Bellary 4. Cleanliness of interior Bellary 5. Cleanliness of exterior - Bidar 6. Courteous and well-mannered crew/staff - Bidar B. Private Buses Variations exist among the divisions in respect of the following facilities provided by Private Buses. 1. Passengers need based stops for relaxation and attending toilet requirements - Bidar 2. Easy ticketing facility Gulbarga 3. Less travel time - Gulbarga 4. Convenient departure and arrival timings Gulbarga and Bellary 5. Cleanliness of exterior - Gulbarga 6. Easy placement of luggage - Gulbarga 7. Driving is smooth and safe and less of rash driving - Gulbarga 8. Courteous and well-mannered crew/staff Gulbarga and Bellary 3.1.10 Functional freedom and autonomy The desirable functional freedom and autonomy to NE-KnRTC to provide efficient and cost-effective transport service in the opinion of the passengers are 1. Deciding the routes and their frequencies, 2. Having differential services for various customer segments and 3. Deciding different fares for off-peak and other special services
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 43% in Bidar, 34% in Gulbarga and 23% in Bellary out of total responses of 549 responses, have registered a favorable opinion to a question related to a functional freedom and authority to NE-KnRTC in deciding the routes and frequencies. 3.1.11 Summary and conclusions 1. A large number of passengers (57%) belong to 20-35 years age group followed by 30% of them belonging to 35-50 years. Income wise 59% of the respondents have Rs.2001-5000 monthly family earnings and 27% of them have Rs.5000-10000 monthly family earnings. The major occupations of the passengers are Agriculture (50%), Service (16%) and Business (14%) and Students 2. The average distance traveled by the pass holders is 35 Kms and the average distances in divisions are Gulbarga - 19 Kms, Bidar - 32 kms and Bellary 56 Kms. 3. The travel made by the passengers within city is mostly by NE-KnRTC services and only 2% of them have used private bus service for intercity travel 4. The important reasons mentioned to travel in NE-KnRTC in all divisions are It is the safest It is run by a Government Corporation 5. The first 3 travel attributes as expected by the passengers are Passenger Friendly behavior of the Staff Travel Duration (Journey time) Safety of the Journey 6. Present status of attributes of quality of services from NE-KnRTC according to passengers is A. Satisfied: Handling of Luggage Punctuality
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Speed
B. Comfortable: Frequency Facilities in Bus Shelter/Stand/Terminal Seat Availability Comfort in the Bus C. Need Improvement: Fare (Cost of the Ticket) Reliability Convenient Timings 7. It is desirable some improvement in staff behavior in respect of two aspects Helpful to: Women, Elderly and Children Honesty: Diligently issuing Tickets 8. Most significant reasons for breakdown appear to be the poor maintenance of vehicles and followed by bad condition of roads. This is equally true in all divisions 9. The main factor influencing pilferage in collection is the nexus between the conductor and passenger as revealed by the passengers. 10. NE-KnRTC services are good in providing better facilities than the private operators in respect of Leg room between seats Convenient places for boarding Convenient places for alighting Comfortable Seating Courteous and well mannered crew/staff Convenient stops during the journey for snacks/coffee/lunch/dinner Driving is smooth and safe and less of rash driving
11. Nearly 43% in Bidar, 34% in Gulbarga and 23% in Bellary out of total responses of 549 responses, have registered a favorable opinion to a question related to a functional freedom and authority to NE-KnRTC in deciding the routes and frequencies.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.2 OPINION MAKERS 3.2.1 Socio Economic Characteristics Both male (59%) and female (41%) of 312 opinion makers in the study are natives of rural (16%) and urban (84%) areas. Age wise, 48% of them belong to 20-35 years group, 48% to 35-50 years group and only 3% to 50-65 years group. Occupation wise the respondents belong to government service (49%), Housewife (24%), private service (24%) and elected representatives (2%). Education levels of the respondents are reasonably high to enhance the quality of the survey. They have Primary level (11%), High school level (17%), and college level (70%) education. Only 2% are illiterate. Family Income (Monthly) groups of the sample are less than Rs. 2000 (4%), Rs.2001-5000 (28%), and Rs. 5001-10000 (62%) and above Rs.10000 (6%) Division wise significant variations in socio economic characteristics of the sample are listed below. Gender: Male (67%) and Female (33%) in Bidar Nativity: Urban (74%) and Rural 26(%) in Gulbarga Occupation: Govt. Service (29%) and School/Hospital (41%) in Gulbarga Govt. Service (57%) and School/Hospital (16%) in Bidar More Govt. service persons (60%) account in Bellary Education: Graduation (60%) in Bidar, Post Graduation (25%) in Bellary Family Income: Rs. 2001-5000 (32%) Gulbarga and (25%) in Bellary Rs.5000-10000 (67%) in Bellary and (53%) in Bidar Appendix B3.1 presents the details.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.2.2 Usage of NE-KnRTC services The order of importance assigned by the respondents (multiple answers accepted) why they prefer to travel by NE-KnRTC clearly shows that people highly value more because 1) It is being run by Government Corporation and 2) It is the safest through these services. This attribute is consistent in all divisions. 1. 2. 3. 4. 5. 6. 7. Public sector, Safety, Better time schedule, No better alternative, Cheapest, Most comfortable and Concessions to the needy. Table 3.13 Reasons why people travel in NE-KnRTC by Districts District Gulbarga Bidar Bellary Total Reasons to travel in NE-KnRTC Number Rank Number Rank Number Rank Number Rank 1. They have no better alternative 36 5 46 5 51 3 133 4 2. It is the safest 87 2 75 1 76 2 238 2 3. It is the most comfortable 37 4 59 3 29 6 125 6 4. It is the most convenient in terms 50 3 59 4 47 5 156 3 of timing 5. It is the cheapest 34 6 45 6 50 4 129 5 6. It is run by a Government 95 1 74 2 99 1 268 1 Corporation 7. It offers concessions to the needy 3 7 21 7 28 7 52 7 3.2.3 Opinion of Public Transport Services Half of the opinion makers support the two statements that convey the message of lesser dependence on public services
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 1) Public should be encouraged to use personalized vehicles than relying on Public Transport (50%) and 2) Because of shortage of Buses in NE-KnRTC people are forced to use personalized vehicles (58%) Mixed opinion emerges about the statements related to the road condition and the misuse of bus passes. 1) The condition of Roads in my area is pathetic/very bad Responses: Disagree (19%), Uncertain (36%) and Agree (45%) 2) There is a heavy misuse of Bus passes by passengers Responses: Disagree (12%), Uncertain (34%) and Agree (52%) The necessity of introducing smaller vehicles in the rural areas is felt as revealed by their opinion keeping the road conditions and lesser traffic in rural areas in view. 1) Smaller vehicles are better suited than normal buses for rural areas Disagree (10%), Uncertain (33%) and Agree (57%) 59% of responses from Bellary division agree with the suggestion to depend on personalized vehicles whereas 45% of responses from Bidar division are uncertain with the suggestion. Responses from Gulbarga (25%) do not accept the statement about the pathetic condition of the roads in their areas. Bidar division with 49% responses agrees with the above opinion about the road condition. Misuse of bus passes is a serious problem as opinions suggest in the analysis as only less than 15% disagree with the opinion. Smaller vehicles in their areas are equally felt highly beneficial in all divisions.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.2.4 Important Attributes of Transport Systems The preferences of attributes to a passenger in his travel are measured on 5 point scale [Not at all important, Less important, Important, Very important, and Most important] and based on responses the order of importance of travel attributes in the overall sample is as given below 1 Passenger Friendly behavior of the Staff 2 Safety of the Journey 3 Travel Duration (Journey time) 4 Fare (Cost of the Ticket) 5 Facilities in Bus (Shelter/Stand/Terminus) 6 Reliability of Service 7 Comfort in the Bus 8 Time of the Schedule Variations in these preferences exist among the divisions and the first three preferable attributes are given below. Passenger Friendly behavior of the Staff, Safety of the journey and Travel Duration (Journey time) are commonly stressed service attributes. Table 3.14 Important Attributes of Transport Systems by districts Gulbarga Bidar Bellary Passenger Friendly behavior of the Passenger Friendly Passenger Friendly behavior of the Staff behavior of the Staff Staff Safety of the Journey Safety of the Journey Fare (Cost of the Ticket) Travel Duration (Journey time) Facilities in Bus Travel Duration (Journey time) Shelter/Stand/Terminus)
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.15 Responses about the importance NE-KnRTC Travel Attributes NE-KnRTC Travel Attribute Not at all Less Very Most S.NO Importance Important Important Important Important Important N 1 24 151 111 25 Row% 1 Time of the Schedule 0.32 7.69 48.4 35.58 8.01 N 2 37 110 120 43 2 Fare (Cost of the Ticket) Row% 0.64 11.86 35.26 38.46 13.78 N 2 39 128 103 40 3 Comfort in the Bus Row% 0.64 12.5 41.03 33.01 12.82 N 2 32 122 116 40 Facilities in Bus 4 Shelter/Stand/Terminus) Row% 0.64 10.26 39.1 37.18 12.82 N 0 44 122 106 40 5 Reliability of Service Row% 0 14.1 39.1 33.97 12.82 N 1 27 125 114 45 6 Safety of the Journey Row% 0.32 8.65 40.06 36.54 14.42 N 1 35 108 127 41 7 Travel Duration (Journey time) Row% 0.32 11.22 34.62 40.71 13.14 N 2 20 124 110 56 Passenger Friendly behavior of 8 the Staff Row% 0.64 6.41 39.74 35.26 17.95 3.2.5 Quality of NE-KnRTC services experienced The present quality of services of NE-KnRTC are mostly average and above average levels as shown in the Table 3.16. Some notable quality services could be Punctuality Handling of Luggage Facilities in Bus Shelter/Stand/Terminus Providing the best services to the public Poorly rated services of NE-KnRTC from the respondents point view are Fare (Cost of the Ticket) Convenient Timings
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Seat Availability Reliability Table 3.16 Perception of quality of NE-KnRTC services
Figures in percentage Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 NE-KnRTC Service
Poor
18.00 33.00 26.30 27.20 26.60 21.80 18.00 24.70 17.00 24.30 19.20 13.80
Average 44.90 41.00 47.40 45.80 45.50 47.40 48.10 40.70 46.80 37.50 41.00 42.90
Good 7.50 26.00 26.30 26.90 27.80 30.70 34.00 34.60 36.20 38.10 39.70 43.20
Speed Fare (Cost of the Ticket) Seat Availability Convenient Timings Reliability Comfort in the Bus Number of Stops during the journey Frequency Providing the best services to the public Facilities in Bus Shelter/Stand/Terminus Handling of Luggage Punctuality
3.2.6 Behavior of NE-KnRTC Staff About one third of the responses qualify the behavior of NE-KnRTC staff as average in the listed attributes. Honesty: Diligently issuing Tickets and Courtesy of the staff are good and better services are expected in respect of 1. Discipline in stopping when required and 2. Helpful to: Women, Elderly and Children Honesty: Returning small change of the staff is above average. The passengers look for some improvements in respect of 1.Honesty: Diligently issuing Tickets 2.Helpful to: Women, Elderly and Children
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.17 Opinion about the attributes of Staff behavior Opinion Attributes of Very SL.No Staff behavior Poor Poor Average Good Courtesy N 6 22 119 144 1 Row% 1.92 7.05 38.14 46.15 Honesty: N 5 46 139 97 Returning small 2 change Row% 1.60 14.74 44.55 31.09 Honesty: N 6 71 103 104 Diligently 3 issuing Tickets Row% 1.92 22.76 33.01 33.33 Helpful to: N 9 65 112 99 Women, 4 Elderly and 2.88 20.83 35.90 31.73 Children Row% Discipline in N 7 57 114 107 stopping when 5 2.24 18.27 36.54 34.29 required Row% 3.2.7 Breakdowns of Buses Breakdown of buses is experienced by most of respondents (54%) and this is somewhat less in Gulbarga division as only 46% have reported in the study. Both Public and Private services do have this breakdown of buses on journey (29%). The breakdown of NE-KnRTC services (70%) is more compared to private buses (1%). Breakdown of buses is more in Bidar and Gulbarga divisions. 3.2.8 Comparison of service facilities of NE-KnRTC with Private Operators Private operators do provide better quality entertainment like music / video films.
Very Good 21 6.73 25 8.01 28 8.97 27 8.65 27 8.65
Total 312 100.0 0 312 100.0 0 312 100.0 0 312 100.0 0 312 100.0 0
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ NE-KnRTC services have clear edge over the private operators in providing better facilities. Safety travel, reliability of schedules and better bus shelters are assured by NEKnRTC services compared to private services and they are very important to any passenger in general. NE-KnRTC scores high in respect of the listed quality of services over the private operators 1) Timings of bus/ convenient departure and arrival 2). Reliability of service (on time Departure and Arrival) 3.) Easy ticketing facility 4). Facilities in Bus Shelter / Stand / Terminus 5). Convenient places for boarding 6) Convenient places for alighting 7). Safety of the journey / lesser rash driving 8). Cleanliness of exterior 3.2.9 Improvements of NE-KnRTC services Highly voted suggestions to make NE-KnRTC continue to provide efficient and costeffective transport services are 1). Cancellation of Schedules /Trips /Services when there is no patronage 2). Needs support from Government to do better The first suggestion has been equally weighted from all divisions Bellary (39%), Bidar (33%) and Gulbarga (27%). The second suggestion gets more support from Bellary (44%) and less from Bidar (22%) Next level suggestions are 3) Having differentiated services for various customer segments 4) Deciding different fares for off-peak and special services
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Bidar division lends more importance to these two suggestions compared to other divisions.
Table 3.18 Importance of functional freedom for NE-KnRTC by district District Functional Freedom for Order of SL.NO NE-KnRTC Gulbarga Bidar Bellary Total Importance Revising fares for reasons N 42 41 48 131 1 beyond its control (hike in 5 Row% 32.06 31.30 36.64 100.00 diesel / input costs) Deciding the routes and their N 50 52 29 131 2 6 frequencies Row% 38.17 39.69 22.14 100.00 Having differentiated N 54 70 42 166 3 services for various customer 3 Row% 32.53 42.17 25.30 100.00 segments Deciding different fares for N 46 71 43 160 4 4 off-peak and special services Row% 28.75 44.38 26.88 100.00 Cancellation of Schedules N 52 62 74 188 5 /Trips /Services when there is 1 Row% 27.66 32.98 39.36 100.00 no patronage Needs support from N 62 39 78 179 6 2 Government to do better Row% 34.64 21.79 43.58 100.00 Should be privatized N 17 16 20 53 7 7 Row% 32.08 30.19 37.74 100.00 3.2.10 Summary and Conclusions The sample consists of 312 respondents spread over different villages covering the three divisions (Gulbarga, Bidar, and Bellary) under study. 1. Age wise, 48% of them belong to 20-35 years group, 48% to 35-50 years group. Occupation wise the respondents belong to government service (49%), Housewife (24%), private service (24%) and elected representatives (2%). Education levels of the respondents
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ are reasonably high to enhance the quality of the survey. They have Primary level (11%), High school level (17%), and college level (70%) education. Only 2% are illiterate. 2. Preference to travel by NE-KnRTC comes as It is being run by Government Corporation It is the safest through these services. This attribute is consistent in all divisions 3. Half of the opinion makers support the two statements that convey the message of lesser dependence on public services Public should be encouraged to use personalized vehicles than relying on Public Transport (50%) Because of shortage of Buses in NE-KnRTC people are forced to use personalized vehicles (58%)
4. Passenger Friendly behavior of the Staff, Safety of the Journey and Travel Duration (Journey time) are Important Attributes of Transport Systems. 5. The quality of most of services of NE-KnRTC is at average and/or slightly good levels. Some notable quality services could be Punctuality Handling of Luggage Facilities in Bus Shelter/Stand/Terminus Providing the best services to the public
1. The passengers look for some improvements in respect of Honesty: Diligently issuing Tickets Helpful to: Women, Elderly and Children 7. The perception of breakdown of NE-KnRTC services (70%) is more compared to private buses (1%). Breakdown of buses is more in Bidar and Gulbarga divisions. 8. NE-KnRTC scores high in respect of the listed quality of services over the private operators
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Timings of bus/ convenient departure and arrival Reliability of service (on time Departure and Arrival) Easy ticketing facility Facilities in Bus Shelter / Stand / Terminus Convenient places for boarding Convenient places for alighting Safety of the journey / lesser rash driving Cleanliness of exterior
8. Highly voted suggestions to make NE-KnRTC continue to provide efficient and cost-effective transport services are 1). Cancellation of Schedules /Trips /Services when there is no patronage and 2). Needs support from Government to do better. 3.3 EMPLOYEES There are 13 Managers, 166 Drivers/Conductors and 126 technical and administrative workers in the sample of 305 employees in this opinion survey. 3.3.1 Work Schedules The average working hours of the staff is 56/week and the average is 60 / week in Bidar district. Nearly 41% of the employees belong to 48 hours per week category, 35% of them belong to 48-60 hours per week category and 24% of them belong to 60-72 hours per week category. There are occasions when employees working nearly 12 hours in a day. The average distance covered by the driver/conductor in a day works out 208 Kms and the average passengers traveling in the buses does not exceed 30.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.19 Work Schedule of Employees Details of Work Schedule Total Working Hours /Week At a Stretch Maximum Number of Hours Worked in Last Month Average Kilo Meters Covered Per Day Average Number of Passengers traveling in Bus Normal Day Average Number of Passengers traveling in Bus Peak Day 3.3.2 Work experience and Promotions in the services Majority of the employees, 254 out of 305 (83%) under study do not have any promotion in their entire service periods under KSRTC and NE-KnRTC Departmental experience wise 16 % of the employees have up to 5 years of experience, 22% of them 5-10 years, 38% of them 10-20 years and 23% of them more than 20 years. 3.3.3 Condition of buses of NE-KnRTC 33% of the employees opine that the NE-KnRTC buses are in poor condition, 22% attribute to average condition and 45% attribute to good condition. Buses condition in Gulbarga is poor state according to 49% of the responses. Whereas buses condition in Bellary is comparatively good according to 57% of responses. 69% of them [Gulbarga (72%), Bidar (50%) and Bellary (85%)] are against the idea of introducing smaller capacity buses in the region. District Gulbarga Bidar 54.4 60.3 13.62 14.9 204.24 24.5 18.14 213.36 20.49 19.87 Bellary 54.16 11.27 206.49 28.04 22.38 Total 56.31 13.28 208.06 24.32 20.13
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.20 Opinion about the condition of NE-KnRTC Opinion Very Poor Poor Average Good Excellent N Col. % N Col. % N Col. % N Col. % N Col. % Total Gulbarga 20 19.80 29 28.71 14 13.86 38 37.62 0 0.00 101 District Bidar 15 14.56 19 18.45 29 28.16 40 38.83 0 0.00 103 Bellary 10 9.90 8 7.92 25 24.75 57 56.44 1 0.99 101 Total 45 14.75 56 18.36 68 22.30 135 44.26 1 0.33 305
3.3.4
Factors for better KMPL (Kilometer per Lit)
The order of importance of the factors to achieve better KMPL are obtained after assigning weights 1 to 5 to the ranks marked by the respondents. The order of importance of the factors is 1. Road Condition 2. Bus Condition 3. Driving Habits 4. Bus Maintenance and 5. Route
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.21 Factors for better KMPL (Kilometer per Litre) Ranks assigned by respondents Factors 1 2 3 4 5 Total N 73 118 64 29 21 305 Bus Condition % 23.93 38.69 20.98 9.51 6.89 100 N 34 64 114 68 25 305 Driving habits % 11.15 20.98 37.38 22.30 8.20 100 N 40 70 64 117 14 305 Bus Maintenance % 13.11 22.95 20.98 38.36 4.59 100 N 156 43 37 52 17 305 Road Condition % 51.15 14.10 12.13 17.05 5.57 100 N 2 10 26 39 228 305 Route % 0.66 3.28 8.52 12.79 74.75 100 Table 3.22 Ranking of factors towards achieving better KMPL (Kilometer per Lit) District Factors for better KMPL Gulbarga Bidar Bellary Total i Bus Condition 2 1 2 2 ii Driving habits 3 3 4 3 iii Bus Maintenance 4 4 3 4 iv Road Condition 1 2 1 1 v Route 5 5 5 5 3.3.5 Factors Passengers expectations Employees view that regular bus passengers expect a set of factors to enhance the comfort of travel and providing them in order of their importance will help the corporation to expand their business and preference of their services over private transport services in the long run. Similar to the earlier analysis assigning 1-8 weights to the responses the order of the factors is worked out.
No. i ii iii iv v
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ The first set of the factors that have emerged are 1) Travel safety, 2) Fare, 3) Punctuality and 4) Schedule timings and the next preferred factors are, 5) Facility of taking luggage, 6) Stopping points and 7) Crew behavior and 8) Availability of services When we examine them division wise, Gulbarga and Bellary show slightly different order for two factors Schedule timings and Punctuality in the first set of factors.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table 3.23 Travel Factors [Passengers Expectation] and Ranks assigned by respondents Ranks Factors 1 2 3 4 5 6 7 8 N 123 91 44 22 11 5 0 9 Travel safety % 40.33 29.84 14.43 7.21 3.61 1.64 0.00 2.95 N 73 66 55 55 16 9 15 16 Fare % 23.93 21.64 18.03 18.03 5.25 2.95 4.92 5.25 N 39 48 73 50 34 19 21 21 Punctuality % 12.79 15.74 23.93 16.39 11.15 6.23 6.89 6.89 N 41 55 38 53 50 26 25 17 Schedule timings % 13.44 18.03 12.46 17.38 16.39 8.52 8.20 5.57 11 27 32 31 58 56 50 40 Facility of taking N luggage % 3.61 8.85 10.49 10.16 19.02 18.36 16.39 13.11 N 9 5 33 45 50 74 61 28 Stopping points % 2.95 1.64 10.82 14.75 16.39 24.26 20.00 9.18 N 4 5 24 27 57 64 86 38 Crew behavior % 1.31 1.64 7.87 8.85 18.69 20.98 28.20 12.46 N 5 8 6 22 29 52 47 136 Availability of service % 1.64 2.62 1.97 7.21 9.51 17.05 15.41 44.59 Table 3.24 Order of factors Passengers Expectations District Factors Passenger Expectation Gulbarga Bidar Bellary 1.Travel safety 1 1 1 2.Fare 2 2 2 3.Punctuality 4 3 4 4.Schedule timings 3 4 3 5.Facility of taking luggage 5 5 6 6.Stopping points 6 6 5 7.Crew behavior 7 7 7 8.Availability of service 8 8 8
No. 1 2 3 4 5 6 7 8
All 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00
All 1 2 3 4 5 6 7 8
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.3.6 Governance Options for better services Privatization is opposed by a large number of employees (99%) with a similar opinion across the divisions. A major percentage of respondents prefer to run as departmental (52%) and however 28% of them prefer better patronize from government. Full autonomy is advocated by 20% of the respondents. Major variations of opinion in the divisions are 1. Good to run as a departmental - Gulbarga (76%) and Bidar (45%), 2. Better patronize from government - Bellary (57%) and 3. Full autonomy to NE-KnRTC - Bidar (45%) Table 3.25 Opinion about Privatization District Response Gulbarga Bidar N 1 0 Completely Col. % 0.99 0 N 0 2 Partially Col. % 0.00 1.94 N 100 101 NO Col. % 99.01 98.06 Total 101 103 Table 3.26 Opinion about autonomy District Response Gulbarga Bidar Good to run as a N 77 49 departmental Col. % 76.24 47.57 Better patronize from N 19 8 government Col. % 18.81 7.77 Full autonomy to N 5 46 NE-KnRTC Col. % 4.95 44.66 Total 101 103 3.3.7 Major drawbacks of NE-KnRTC
Bellary 0 0.00 0 0.00 101 100.00 101
All 1 0.33 2 0.66 302 99.02 305
Bellary 32 31.68 58 57.43 11 10.89 101
All 158 51.80 85 27.87 62 20.33 305
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Very often stated drawbacks as reasons for the present ineffective services are 1) Government interference, 2) Absence of professionalism at policy making level (Board, 3) Forced to offer services at rates lower than cost price 4) Functioning of private operators and 5) Lack of control on illegal operations. They are presented to the employees to understand their mind on these aspects. No government interference into the affairs of the corporation according to 51% of responses Division wise the percentages are Gulbarga (59%), Bidar (41%) and Bellary (57%). Absence of professionalism at policymaking level (Board) in the corporation is expressed as major drawback by 48% of the respondents and 41% of them are uncertain and 17% of them do not agree with that opinion. The opinion of absence of professionalism is very strong from Bellary division (60%) and whereas 38% and 47% of the respondents agree with the opinion in Gulbarga and Bidar divisions. The corporation is forced to offer services at rates lower than cost price according to 44% of them and whereas 14% of them disagree and 42% of them are uncertain on that point. The variations of opinion in divisions are given in a tabular form. Table 3.27 Opinion about reduction of travel rates below cost price Response Disagree Uncertain Agree Gulbarga 21% 40% 39% Bidar 11% 39% 50% Bellary 11% 47% 42% All 14% 42% 44%
The presence of private transport services operating parallel to the public transport service and lack of control on illegal operations appear to be other important problems to the
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ corporation. This opinion has emerged from 52% and 57% of the respondents respectively in the survey. Division wise 39% in Gulbarga, 60% in Bidar and 58% in Bellary share the opinion that functioning of private operators as a drawback to the public transport corporation. Division wise wide variation in agreement to the statement lack of control on illegal operations exists [Gulbarga (45%), Bidar (69%) and Bellary (58%)]
3.3.8 Public Transport In the context of wide personal vehicles and private vehicles the role of public transport systems needs significant changes to coexist with them and work efficiently. To understand the reaction of the employees, a set of 5 statements broadly covering the idea is presented to them. To the extent of 71% of the responses disagree with the statement Public should be encouraged to use two/four wheeler than relying on NE-KnRTC and no division wise variation, Without significant differences among the divisions, 62% of the employees feel that the conditions of roads in their areas are pathetic The statement that till roads are improved, public should use their own transport than asking for NE-KnRTC buses is not acceptable to 55% of the respondents and 39% of them are uncertain on that opinion. Pooling the opinions expressed by the respondents, the implication is that the services should not be curtailed and the roads should be improved to improve the services of NE-KnRTC.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ With respect to the statements about misuse of bus passes and suitability of smaller vehicles to operate, there is a well-divided opinion as shown below. Table 3.28 Opinion about travel facilities Statements Opinion Gulbarga Bidar Agree 47% 63% There is a heavy misuse of bus Uncertain 30% 28% passes Disagree 23% 9% Agree 45% 63% Smaller vehicles are better suited Uncertain 27% 28% than normal buses Disagree 28% 9% 3.3.9 Breakdowns of Buses Breakdown of NE-KnRTC buses are experienced by 56% respondents [Gulbarga (63%), Bidar (52%) and Bellary (55%)] and the breakdown reasons may be ordered on the basis of agreement of responses as 1. 2. 3. 4. Bad conditions of road (91%) Poor maintenance of vehicles (87%) Aged vehicle (85%) and Rude handling by drivers (46%) Bellary 61% 28% 11% 70% 26% 4% All 57% 29% 14% 59% 27% 14%
Bidar Division responses (64%) attributing the rude handling by drivers, as an important reason is significant when compared the responses of Gulbarga (41%) and Bellary (36%)
Table 3.29 Opinion about the reasons of breakdowns of buses
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Reasons for Break Sl.No Downs 1 Poor maintenance N of vehicles Row % Bad conditions of N 2 road Row % N 3 Aged vehicle Row % Rude handling by N 4 drivers Row % Strongly Agree 9 2.95 1 0.33 2 0.66 64 20.98 Disagree 2 0.66 3 0.98 8 2.62 57 18.69 Uncertain 29 9.51 22 7.21 35 11.48 41 13.44 Agree 94 30.82 110 36.07 82 26.89 48 15.74 Strongly Agree 171 56.07 169 55.41 178 58.36 95 31.15 Total 305 100.00 305 100.00 305 100.00 305 100.00
3.3.10 Comparison of NE-KnRTC and Private Bus Operators services A. Private Bus operators have edge over the public transport services in providing 1. Better quality entertainment like music / video films, 2. Cleanliness of interior and 3. Cleanliness of exterior B. NE-KnRTC services provide facilities over private operators with respect to 1. Comfort in the bus / Comfortable seating 2. Easy ticketing facility C. Fare (Cost of the Ticket) is competitive aspect between the two service provides. D. NE-KnRTC services provide clearly better facilities in respect of 1. Timings of bus/ convenient departure and arrival 2. Convenient places for alighting 3. Convenient places for boarding 4. Facilities in Bus Shelter / Stand / Terminus 5. Safety of the journey / less rash driving 3.3.11 Contributing factors of Earnings per Km. (EPKM) Based on ranks assigned to the contributing factors of earnings per Km by the respondents, the order of importance of these factors works out as 1) Better services, 2) Better traffic management, 3) Provision for luggage
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 4) Appropriate fares and 5) Publicity Among divisions there is a difference in order of importance for the first 3 factors. Table 3.30 Ranking of factors to increase Earnings per km by their importance Ranks Sl. No Factors 1 2 3 4 5 Total Importance N 71 85 90 23 36 305 2 Better traffic 1 management Row % 23.28 27.87 29.51 7.54 11.80 100.00 N 80 94 76 51 4 305 1 2 Better services Row % 26.23 30.82 24.92 16.72 1.31 100.00 N 63 61 55 79 47 305 3 Provision for 3 luggage Row % 20.66 20.00 18.03 25.90 15.41 100.00 N 58 54 50 103 40 305 4 Appropriate 4 fares Row % 19.02 17.70 16.39 33.77 13.11 100.00 N 33 11 34 49 178 305 5 5 Publicity Row % 10.82 3.61 11.15 16.07 58.36 100.00 Table 3.31 Ranks assigned to factors to increase Earnings per km by district District Factors Gulbarga Bidar Bellary All 1. Better traffic management 1 2 3 2 2. Better services 2 1 1 1 3. Provision for luggage 3 3 2 3 4. Appropriate fares 4 4 4 4 5. Publicity 5 5 5 5
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.3.12 Opinion on selected statements related to the organization Proper perception of the employees over the existing operational practices and their influences on the services of the corporation is important to rectify some of the negative and real practices to build up a better image of the corporation over the private services and provide more facilities to the public. The set of statements presented to the employees to get their reactions address this need in the study. The statements presented broadly cover three important aspects 1) Income generation, 2) Administrative capability and 3) Reduction of pilferages The statements related to the effective way of running the corporation to generate more revenue are agreeable to the employees. This is a good state of industrial relationship practices of the corporation. 1. This division is successful in meeting competition (72%) 2. Higher revenue is possible through better traffic management (61%) 3. Daily collection incentive is well thought out move (59%) 4. My daily targets are achievable (52%) Opinions on statements 1) My superiors are fair in duty allotment (61%) and 2) Our procedures for dealing with administrative problems are fair and transparent (57%) have mixed responses. It is an indication of some dissatisfaction of the employees in getting fair workloads. When the respondents have to react with the statements about effective vigilance, passenger role in it and curbing pilferage, more than 50% responses are agreeable with the statements. This is also true in all divisions as shown below. 1. Pilferage is still there in the division in spite of vigilance actions (48%) 2. Vigilance is effective in curbing pilferage (61%) 3. Passengers are mainly responsible for pilferage (56%)
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 40% of the respondents have disagreed with the truth of their role in pilferage and 37% of them disagree with the existing of high absenteeism in their division. Table 3.32 Opinion on selected statements related to the organization Response Statement Disagree Neutral Agree 1.This division is successful in meeting competition 10.16% 17.70% 72.13% 2.Higher revenue is possible through better traffic management 7.21% 32.13% 60.66% 3.My daily targets are achievable 16.39% 31.48% 52.13% 4.Daily collection incentive is well thought out move 14.75% 26.56% 58.69% 5.My superiors are fair in duty allotment 12.79% 25.90% 61.31% 6.Our procedures for dealing with administrative problems are fair and transparent 15.08% 27.87% 57.05% 7.Vigilance is effective in curbing pilferage 13.77% 25.25% 60.98% 8.Passengers are mainly responsible for pilferage 16.07% 28.20% 55.74% 9.Pilferage is still there in the division in spite of vigilance actions 28.52% 23.28% 48.20% 10.Role of the crew in pilferage is true 39.67% 14.43% 45.90% 11.Absenteeism in this division is high 37.38% 12.46% 50.16% When we examine the variations in the divisions for these statements, Bellary responses are more positive towards the statements and on the other hand Gulbarga responses show more disagreement to the statements in these divisions. Disagreement is more apparent in Gulbarga division towards the two statements 1.Role of the crew in pilferage is true (56%) and 2. Absenteeism in this division is high (56%)
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 3.3.13 Summary and Conclusions The sample consists of 305 respondents coming from 1) Gulbarga (101), 2) Bidar (103) and 3) Bellary (101) districts. There are 13 Managers, 166 Drivers/Conductors and 126 technical and administrative workers who have participated in this opinion survey. 1. The average working hours of the staff is 56/week. The average distance covered by the driver/conductor in a day works out 208 Kms and the average passengers traveling in the buses does not exceed 30. 2. Majority of the employees, 254 out of 305 (83%) under study do not have any promotion in their entire service periods under KSRTC and NE-KnRTC. 3. 33% of the employees opine that the NE-KnRTC buses are in poor condition 4. The order of importance of the factors to achieve better KMPL are Road Condition Bus Condition Driving Habits Bus Maintenance Route 5. The first set of the factors Passengers expectations are Travel safety Fare Punctuality Schedule timings. 6. Privatization is opposed by a large number of employees (99%) with a similar opinion across the divisions. A major percentage of respondents prefer to run as departmental (52%) and however 28% of them prefer better patronize from government. 7. The presence of private transport services operating parallel to the public transport service and lack of control on illegal operations appear to be other important problems to
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ the corporation. This opinion has emerged from 52% and 57% of the respondents respectively in the survey. 8. Without significant differences among the divisions, 62% of the employees feel that the conditions of roads in their areas are pathetic 9. Breakdown of NE-KnRTC buses are experienced by 56% respondents [Gulbarga (63%), Bidar (52%) and Bellary (55%)] and the breakdown reasons may be ordered on the basis of agreement of responses as 1.Bad conditions of road (91%), 2.Poor maintenance of vehicles (87%), 3.Aged vehicle (85%) and 4.Rude handling by drivers (46%) 10. NE-KnRTC services provide clearly better facilities in respect of Timings of bus/ convenient departure and arrival Convenient places for alighting Convenient places for boarding Facilities in Bus Shelter / Stand / Terminus Safety of the journey / less rash driving
11. Factors contributing to Earnings per Km in order of their importance are Better services Better traffic management Provision for luggage Appropriate fares Publicity
12. When the respondents have to react with the statements about effective vigilance, passenger role in it and curbing pilferage, more than 50% responses are agreeable with the statements. 40% of the respondents have disagreed with the truth of their role in pilferage and 37% of them disagree with the existing of high absenteeism in their division.
Chapter 4
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Demand of passenger buses in NE-KnRTC and Investment Requirement

4.1 Development of business plans In this section a business plan containing the forecast of requirements of buses under each sector is presented. This will determine what policy initiatives will be required to fulfill the demand and financial package that would be required. A business plan seeks to make a capacity planning keeping in view the future requirements for 10 or more years and the present status. A sound methodology is required for making this forecast. The demand is analyzed for the various sectors of: Urban Operations, Intra District and Rural Services, Inter District Services and Inter State Operations. The characteristics of each one of these services are quite different with respect to frequency of service, time of service, service quality, willingness to pay and the expectations of the public etc. An attempt is made to develop separate yardsticks and business plans for each of these categories. Most of the State Road Transport Undertakings in India are incurring losses in their operations under Category 1 and 2. Profits are generally made through the operations under Category 3 and 4. 4.2 Business Plan for Urban Operations For Urban operations, the norms used to estimate the requirements of buses are given below. As per the estimates of the population in 2006, 2011 and 2016, none of the cities among the cities of the NE region of Karnataka will have more than million populations in 2016 Table 4.1
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Norms for Bus Fleet size Ranges Pop. Range > 80 Lakhs 60-80 Lakhs 40-60 Lakhs 20-40 lakhs 10-20 Lakhs Buses Required/Lakh Desirable Minimum 100 80 80 60 60 50 50 40 40 30
Scenario 1 considers the growth of urban sprawl, the resultant increase in trip lengths and the number of trips a bus could make in a day between two places due to congestion on many roads. Scenario-2 visualizes less urban sprawl and consequently reduced trip lengths. These assumptions are discussed with the officials of BMTC, APSRTC and other experts and the norms suggested in the above table are in line with their perceptions Table 4.2 Cities in North East Districts of Karnataka (More than one million persons in 2001) Population Estimated Population Censes 2001 2008 2012 2016 172298 194559 208548 223543 427929 483217 517961 555203 317000 357956 383694 411282 205634 232202 248897 266793
No. 1 2 3 4
City Bidar Gulbarga Bellary Raichur
4.3 Demands for Intra District and Rural Services In any Road Transport undertaking, maximum number of buses operates as Intra District and Rural Services. For example in the case of Andhra Pradesh, APSRTC is roughly operating 50% of their total fleet (9000 buses out of 18,900) for this service. The profitability of the undertaking depends critically upon how well these buses are deployed and the operational efficiency of these services. These services provide two categories of
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ services. One, by providing accessibility to villages with administrative and economic activity centers at district level Two, by providing service within the district between and among the places of importance such as business locations, historical places, linking taluk head quarters and district head quarters, and inter linking other major economic activity locations. Thus, the demand for these services is linked to: - Number of settlements in the state - Number of economic activity centers in the state However, it is difficult to estimate the number of activity locations in the state as their number will be changing and grows with the development of the state. The proxy to this is the size of the rural population undertaking journeys in the state. The number of trips in a rural settlement will be much less compared to urban areas. One bus on an average will be able to cater to four rural settlements. In addition, it is felt that six buses may be required per lakh of population to link various economic activity centers in a state. These norms are applied to the North East Districts of Karnataka (NE-KnRTC) to validate the model. Demographic details of State and North West Districts of Karnataka as per 2001 Census are provided in Table 4.3. Population Projections in State and North West Districts of Karnataka are provided in Table 4.4.
Table 4.3
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Demographic details of State and North East Districts of Karnataka as per 2001 Census As per 2001 census Population 2001 Growth Rate Blocks Towns Villages Persons Urban Rural 1991-2001 Karnataka State State 175 200 29,406 52,850,562 17,961,529 34,889,033 17.51 North East Districts of Karnataka Bidar 5 5 621 1,502,373 344,875 1,157,498 19.63 Gulbarga 10 13 1,437 3,130,922 852,621 2,278,301 21.25 Bellary 7 13 554 2,027,140 706,850 1,320,290 22.41 Raichur 5 7 883 1,669,762 420,837 1,248,925 23.52 Koppal 4 4 629 1,196,089 198,292 997,797 24.84 31 42 4,124 9,526,286 2,523,475 7,002,811
1 2 3 4 5
Table 4.4
Population Projections in State and North East Districts of Karnataka All Population Projections Rural Population Projections 2008 2012 2016 2008 2012 2016 Karnataka State State 68,569,32 45,265,698 59,678,845 63,969,824 9 39,396,690 42,229,358 North East Districts of Karnataka Bidar 2,011,022 1,549,385 1,721,377 1,860,572 1,326,229 1,433,471 Gulbarga 4,291,937 3,123,145 3,627,411 3,945,709 2,639,585 2,871,203 Bellary 2,826,572 1,840,966 2,367,333 2,586,781 1,541,860 1,684,788 Raichur 2,366,462 1,770,033 1,964,848 2,156,325 1,469,639 1,612,858 Koppal 1,728,242 1,441,728 1,420,221 1,566,680 1,184,772 1,306,950 Total 13,224,23 9,725,256 11,101,190 12,116,067 8,162,084 8,909,269 5
1 2 3 4 5
Table 4.5
Bus fleet for Intra and Rural Operations in North East Districts of Karnataka Item 2001 2008 2012 Number of Settlements 4124 4124 4124 Buses@ 1 for 4 settlements 1031 1031 1031 Rural Population (Lakhs) 70 82 89 Buses @ 6 per lakh 420 492 534 Total Bus Fleet Needed 1451 1523 1565 2016 4124 1031 97 582 1613
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Thus, the demand for services as per the model suggested above works out to about 1499 buses, given the number of settlements at 4124 and estimated rural population of 78 lakh as of 2006. 4.4 Inter District Services The demand for Inter District Services depends upon major economic and administrative places of importance in a state, the intensity of economic activity and linkages provided by railways. The total population of a state also contributes the demand for services. The demand for this category of services comprises of: 1. Number of economic activity centers in a state In the absence of detailed information about economic activity centers and their growth over a period of time, the number of towns in a state could be used as a proxy. 2. The total population of a state At macro level, the number of buses required per town will be about 5. The number of buses required per lakh of total population will be about 8. Applying this model to the North East districts of Karnataka, the number of buses required is presented in Table 4.6 Table 4.6
Buses needed at different time periods in North East Districts of Karnataka Item 2001 2008 2012 Population in lakh 95 111 121 Buses @ 8 Per Lakh 760 888 968 Number of Census Towns 42 44 46 Buses @ 5 Per Census town 210 221 232 Total Fleet needed 970 1109 1200
2016 132 1056 49 243 1299
The number of buses required as per this model for the region has been worked out to be about 1069. The actual number of buses deployed by NE-KnRTC is around
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ A number of private operators will be operating in this segment, as operation of the sector is always profitable. It may be presumed that STUs may cater to 75% of the demand on this sector and private operators the remaining 25%. It is in the interest of STU to cater to as much percentage as possible, to offset the losses in rural operation. The requirement of buses in this segment will also depend upon the penetration of Railways and number of passenger trains linking different activity centers in the state. 4.5 Inter State Services
Inter State Services will be mostly buses plying to the neighboring state and places of business centers, places of historical importance such as religious importance and tourist locations. These services are always profitable and private operators mostly concentrate on this segment. The demand for bus services depends upon how STU/private operators provide comfortable and convenient to travel for long distances. After the introduction of Volvo services, it is observed that the demand is increasing. However, the intensity of railways operations will influence the demand for buses. At macro level, the demand for the number of buses will be about 3 buses per lakh of population. Applying this, the number of buses required in the region is around 318. Most of the private operators will be operating in this segment; STU may cater to approximately about 40% to 50% in any state. There is a necessity that STU should operate as many buses as possible in this sector as it could help cross subsidize the other non-profitable segments. The demand for inter-state services in India for different time periods is tabulated in Table 4.7. However, this demand may vary with the services offered by Railways.
Table 4.7
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Buses Required at different time periods in North East Districts of Karnataka Item 2001 2008 2012 2016 Total Population in Lakhs 95 111 121 132 Bus Fleet @ 3 per lakh 285 333 363 396
4.6 Total Demand for Bus fleet in NE districts of Karnataka The previous sections provided bus fleet requirements for different sectors for different time periods. This information is consolidated to understand the requirement for total bus fleet augmentation in Table 4.8. The participation of private operators varies in each segment depending upon the profitability and government policies regarding freedom in selection of routes. Table 4.8
Total requirement of Bus Fleet in North East Districts of Karnataka Type of service 2008 2012 Urban Operations 236 322 Intra District and Rural services 1523 1565 Inter District Services 1109 1200 Inter State Operations 333 363 Total Requirements 3200 3450 2016 342 1613 1299 396 3650
However, NE-KnRTC is currently running about 2425 buses to cater to all segments. The demand is more than supply in these districts where NE-KnRTC operates its buses. By 2016, the corporation needs to augment its fleet by another 1000 buses. It may be noted that these additions are over and above the replacement of over aged buses. 4.7 Financial Investment Investment will be needed mostly in two areas for buying buses and building bus stands at district headquarters and bus shelters. The short fall in busses in 2008, 2011 and 2016 is given below in Table 4.9 based on estimations above. This includes both additions and replacement of buses. We are assuming that the average cost of bus will be Rs.17 lakhs, which would include luxury as well as some Volvo buses. The age of the fleet is very high and these need to be replaced and phased out. The replacement of old buses with new one will itself improve the Occupancy ratio of the corporation. This will give them an edge
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ over the private operators. Studies have shown that better buses do help in improving occupancy ration, especially in sectors in which competition is high. We have proposed below the schedule of purchase of buses. Another area of investment is bus stands. We would like to recommend modern bus stands with good amenities at district headquarters at least. We are assuming each bus stand will cost Rs.20 crores and couple of districts can be taken up each year for modernization. So, for 2008-09 to 2011-12, the corporation would require Rs.105 crores. Total financial requirement for the period from 2008-09 to 2011-12 is given in Table 4.9 below based on these projections and estimations. Table 4.9 Requirement of additional buses and investment in 2008-09 to 2011-12 Items Total Buses Required Nos Average value of bus (Rs. Lakhs) Total Investment required for buses (Rs Lakhs) Investment on Bus stands (Rs. Lakhs) Total Investments required (Rs. Lakhs)
6800 4000 10800 5400 4000 9400 5400 2000 7400 3800 500 4300
2008-09
400 17
2009-10
300 18
2010-11
300 18
2011-12
200 19
The financial support for the four years period comes to Rs.390 crores. This can be given as part loans and part equity by the state government. Of these Rs.105 crores meant for infrastructure can be obtained through JNURM. The balance Rs.285 crores can be funded through equity to the extent of Rs.100 crores by state government and Rs.185 crores through market borrowings. An Escrow account can be formed out of luxury and interstate and inter district buses, which can be used for servicing the loan. The new buses will help in attracting more passengers and improving occupancy ratio. This will also help to
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ compete with private operators and wean away traffic from them in the interstate and long distances inter district segments. 4.8 Summary and Conclusions None of the cities in these districts will have projected population of one million plus in 2016. To handle intra district and rural services, there will be a need of 1553 and 1613 buses in years 2011 and 2016 respectively. For inter district services the demand will be 1184 and 1299 buses for the years 2011 and 2016 respectively. Inter state operations could be managed with 357 buses and 396 buses in the specified years 2011 and 2016.Thus, the total demand of 3094 buses for 2011 and 3308 buses for 2016 is projected to service all segments of the region covered by NE-KnRTC bus services NE-KnRTC is currently running about 2425 buses to cater to all segments. The organization needs to plan additional buses to the extent of 1000 buses by 2016. These additions are over and above the replacements needed for over aged fleet Financial investment of Rs.108 crore during 2008-09 is estimated to increase the size of the bus fleet and modernize the infrastructure facilities like bus stands etc. The mode of augmenting the resources is suggested. During 2011-12 the required financial investment would be to the tune of Rs.43 crore.
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Chapter 5 Summary and Recommendations

Even though NE / NW KRTC s are experiencing losses, the physical and financial components analysis with reference to parent KSRTC and with two other Transport Corporations clearly indicate that they are efficiently running their buses. Poor financial performance is attributable to competition from private operators and the low traffic density routes. They can improve their financial performance by systematic Routing and Scheduling, increasing the share of Inter District and Intra State through the addition of Volves, deluxe buses etc. The share of traffic revenue of NE-KnRTC to total revenues is 92.92 in 2006-07 and in contrast KSRTC is constantly increasing this proportion of revenue from traffic handling over the periods. Since this portion of revenue is an indicator of popularity of the services, NE-KnRTC has to move in the direction of improving the services in quality and quantity. Operations ratio indicates the efficiency of management. The smaller the ratio, the greater is the organization's ability to generate profit if revenues decrease. In railroading, an operating ratio of 80 or lower is considered desirable. The corporation has values of 102.72% and 101.69% in 2005-06 and 2006-07 respectively, which is very high and unfavourable. The differences between revenue and cost per km of Punjab and Maharashtra RTCs and NE-KnRTC over 2004-05 to 2006-07 are negative whereas NW-KnRTC could make it positive in 2006-07. KSRTC was able to maintain a healthy trend of relationship between revenue and cost over these periods. The daily bus utilization of NE-KnRTC has increased from 306 Kms/Bus in 2004-05 to 318 Kms/Bus in 2006-07.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ The fleet utilization of NE-KnRTC has decreased from 100% to 95% over three year period and this percentage of fleet utilization in other corporations is varying over periods too. This could be because of age of the fleet, which is quite high. Productivity measures like Staff per bus on-road, effective kms per staff per day, and Fuel Performance (Km/pl) have shown that NE-KnRTC is good enough to maintain comparable values with other corporations. Fuel performance of the corporation buses is even better and consistent when compared with other corporation figures. NE-KnRTC has an accident rate of 0.13 per lakh km in 2006-07, which is on higher side over its own rate of 0.09 during 2004-05.
1. An opinion survey was conducted covering three segments of - Passengers, Opinion Makers and Employees selected from three districts - Gulbarga, Bidar and Bellary covered by NE-KnRTC services in the state. 2. A large number of passengers (57%) belong to 20-35 years age group followed by 30% of them belonging to 35-50 years. Income wise 59% of the respondents have Rs.2001-5000 monthly family earnings and 27% of them have Rs.5000-10000 monthly family earnings. The major occupations of the passengers are Agriculture (50%), Service (16%) and Business (14%) and Students 3. Age wise, 48% of opinion makers belong to 20-35 years group, 48% to 35-50 years group. Occupation wise the respondents belong to government service (49%), Housewife (24%), private service (24%) and elected representatives (2%). Education levels of the respondents are reasonably high to enhance the quality of the survey. They have Primary level (11%), High school level (17%), and college level (70%) education. Only 2% are illiterate. 4. There are 13 Managers, 166 Drivers/Conductors and 126 technical and administrative workers among the employees sample. Majority of the employees,
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 254 out of 305 (83%) under study do not have any promotion in their entire service periods under KSRTC and NE-KnRTC. 5. Only 6% of the respondents are holding bus seasonal passes to commute regularly and most of these pass holders are students. The travel made by the passengers within city is mostly by NE-KnRTC services and only 2% of them have used private bus service for intercity travel 6. The important reasons mentioned to travel in NE-KnRTC in all divisions both by Passengers and Opinion Makers are It is the safest It is run by a Government Corporation
7. Half of the Opinion Makers support the two statements that convey the message of lesser dependence on public services Public should be encouraged to use personalized vehicles than relying on Public Transport (50%) Because of shortage of Buses in NE-KnRTC people are forced to use personalized vehicles (58%) 8. Breakdown of vehicles has been experienced by a large percentage of passengers in all divisions. Significant reasons appear to be the poor maintenance of vehicles and followed by bad condition of roads. 9. Passengers have expressed their opinion about the quality of the services of the NEKnRTC services and grouped into three categories. A. Satisfied: Handling of Luggage
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Punctuality Speed
B. Comfortable: Frequency Facilities in Bus Shelter/Stand/Terminus Seat Availability Comfort in the Bus C. Need Improvement: Fare (Cost of the Ticket) Reliability Convenient Timings 10. Some improvement in staff behavior is desired by the Passengers Helpful to: Women, Elderly and Children Honesty: Diligently issuing Tickets 11. Passenger Friendly behavior of the Staff, Safety of the Journey and Travel Duration (Journey time) are Important Attributes of Transport Systems according to Opinion Makers. 12. The first set of the factors Passengers expectations are Travel safety, Fare Punctuality Schedule timings 13. According to Passengers, NE-KnRTC services are good in providing better facilities than the private operators in respect of Leg room between seats Convenient places for boarding Convenient places for alighting Comfortable Seating Courteous and well mannered crew/staff Convenient stops during the journey for snacks/coffee/lunch/dinner Driving is smooth and safe and less of rash driving
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 14. The main factor influencing pilferage in collection is the nexus between the conductor and passenger as revealed by the passengers. 15. The presence of private transport services operating parallel to the public transport service and lack of control on illegal operations appear to be other important problems to the corporation. More than 50% of the employees have expressed this opinion in the survey.
16. Factors contributing to Earnings per Km in order of their importance as assigned by the employees are Better services, Better traffic management, Provision for luggage, Appropriate fares and Publicity
17. Privatization is opposed by a large number of employees (99%) with a similar opinion across the divisions. A major percentage of respondents prefer to run as departmental (52%) and however 28% of them prefer better patronize from government. 18. 43% in Bidar, 34% in Gulbarga and 23% in Bellary out of 549 responses of Passengers favor functional freedom and authority to NE-KnRTC in deciding the routes and frequencies. 19. An attempt has been made to estimate the future requirements of buses. Based on future populations of urban and rural areas of the districts covered under this region incoming years 2011 and 2016, the requirement of passenger buses are worked out on the basis of norms developed for different segments of the society.
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 20. To handle intra district and rural services, there will be a need of 1553 and 1613 buses in years 2011 and 2016 respectively. For inter district services the demand will be 1184 and 1299 buses for the years 2011 and 2016 respectively. Inter state operations could be managed with 357 buses and 396 buses in the specified years 2011 and 2016. 21. The total demand of 3094 buses for 2011 and 3308 buses for 2016 is projected to service all segments of the region covered by NE-KnRTC bus services 22. However, NE-KnRTC is currently running about 2425 buses to cater to all segments. The demand is more than supply in these districts where NE-KnRTC operates its buses. By 2016, the corporation needs to augment its fleet by another 1000 buses. It may be noted that these additions are over and above the replacement of over aged buses. 23. It is estimated that in 2008 09, 400 buses will be required for both additional service and for replacement. For the next four years, 1200 buses will be required in total considering the age of the fleet and proposed expansion. Investment will be required for infrastructure also for building bus stands and it is proposed for the next four years from 2008 -09 to 2011 12, the corporation would require Rs. 108 crore, Rs.94 crores, Rs.74 crore, and Rs.43 crore respectively.
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APPENDIX
APPENDIX A Table A3.1
Socio-economic characteristics of the respondents

1. Residential Status Residential Sl. Status No N Urban 1 Col. % N Rural 2 Col. % 2. Age Groups (Years) N 1 Up to 20 Col. % N 2 20-35 Col. % N 3 35-50 Col. % N 4 50-65 Col. % 3. Educational Qualification N 1 Illiterate Col. % N Primary 2 school Col. % N 3 High School Col. % N 4 Graduation Col. % N Post 5 Graduation Col. % Sample size N Gulbarga 28 9.30 273 90.70 25 8.31 171 56.81 98 32.56 7 2.33 4 1.33 70 23.26 139 46.18 82 27.24 6 1.99 301 District Bidar 72 24.16 226 75.84 44 14.77 182 61.07 62 20.81 10 3.36 8 2.68 45 15.10 139 46.64 89 29.87 17 5.70 298 Bellary 22 7.31 279 92.69 26 8.64 157 52.16 107 35.55 11 3.65 4 1.33 53 17.61 164 54.49 62 20.60 18 5.98 301 Total 122 13.56 778 86.44 95 10.56 510 56.67 267 29.67 28 3.11 16 1.78 168 18.67 442 49.11 233 25.89 41 4.56 900
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4. Occupation Sl. Occupation No Student 1
District Gulbarga Bidar N 17 22 Col. % 5.65 7.38 2 N 8 11 Housewife Col. % 2.66 3.69 3 N 53 41 Service Col. % 17.61 13.76 4 N 148 136 Agriculture Col. % 49.17 45.64 5 N 22 25 Labourer Col. % 7.31 8.39 6 N 41 51 Business Col. % 13.62 17.11 7 N 12 12 Others Col. % 3.99 4.03 5. Average Family Monthly Income N 39 15 Less than Rs.2000 1 Col. % 12.96 5.03 N 187 179 Rs.2001-5000 2 Col. % 62.13 60.07 N 65 75 Rs. 5000-10000 3 Col. % 21.59 25.17 N 7 4 Rs. 10000-15000 4 Col. % 2.33 1.34 N 2 4 More than Rs. 5 15000 Col. % 0.66 1.34 N 1 21 No Answer 6 Col. % 0.33 7.05 Sample size N 301 298
Bellary 17 5.65 9 2.99 54 17.94 164 54.49 22 7.31 31 10.30 4 1.33 27 8.97 167 55.48 100 33.22 7 2.33 0 0.00 0 0.00 301
Total 56 6.22 28 3.11 148 16.44 448 49.78 69 7.67 123 13.67 28 3.11 81 9.00 533 59.22 240 26.67 18 2.00 6 0.67 22 2.44 900
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table A3.2 S.NO 1 NE-KnRTC Travel Attribute Importance Time of the Schedule N Row % N Row % N Row % N Row % N Row % N Row % N Row % N Row % Not at all Less Very Most Important Important Important Important Important 10 53 194 508 135 1.11 24 2.67 10 1.11 6 0.67 3 0.33 7 0.78 12 1.33 11 1.22 6.78 5.89 61 6.56 53 7.22 59 8.44 65 8.67 76 8.78 78 5.89 79 21.56 156 17.33 166 18.44 179 19.89 188 20.89 161 17.89 177 19.67 174 19.33 56.44 453 50.33 404 44.89 365 40.56 366 40.67 345 38.33 308 34.22 237 26.33 15.00 188 20.89 242 26.89 274 30.44 278 30.89 328 36.44 350 38.89 417 46.33 Total 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0
Fare (Cost of the Ticket)
Comfort in the Bus Facilities in Bus Shelter/Stand/Terminus) Reliability of Service
Safety of the Journey Travel Duration (Journey time) Passenger Friendly behavior of the Staff
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table A3.3 Opinion of Passengers about the quality of NE-KnRTC Services by District Attributes of NESl.No KnRTC Services 1 N Punctuality Row % N Speed Row % N Frequency Row % N Seat Availability Row % N Fare (Cost of the Row Ticket) % N Reliability Row % N Convenient Timings Row % N Comfort in the Bus Row % N Facilities in Bus Row Shelter/Stand/Terminus % N Handling of Luggage Row % Opinion about the quality of NE-KnRTC Services Very Very Poor Poor Average Good Good Total 15 128 339 396 22 900 100.0 1.67 14.22 37.67 44.00 2.44 0 23 188 329 316 44 900 100.0 2.56 20.89 36.56 35.11 4.89 0 33 247 366 236 18 900 100.0 3.67 27.44 40.67 26.22 2.00 0 44 242 313 256 45 900 100.0 4.89 26.89 34.78 28.44 5.00 0 144 328 267 133 28 900 100.0 16.00 36.44 29.67 14.78 3.11 0 72 327 314 167 20 900 100.0 8.00 36.33 34.89 18.56 2.22 0 103 313 294 180 10 900 100.0 11.44 34.78 32.67 20.00 1.11 0 82 197 338 268 15 900 100.0 9.11 21.89 37.56 29.78 1.67 0 161 162 252 295 30 900 100.0 17.89 18.00 28.00 32.78 3.33 0 73 127 233 392 75 900 100.0 8.11 14.11 25.89 43.56 8.33 0
10
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table A3.4 Attributes of Staff behavior Courtesy Opinion about the behavior of NE-KnRTC Staff Opinion Very Poor Poor Average Good N 25 98 380 340 Row % Honesty: Returning small change Honest: Diligently issuing Tickets Helpful to: Women, Elderly and Children Discipline in stopping when required N Row % N Row % N Row % N Row % 2.78 15 1.67 20 2.22 53 5.89 18 2.00 10.89 157 17.44 170 18.89 208 23.11 161 17.89 42.22 312 34.67 340 37.78 339 37.67 338 37.56 37.78 367 40.78 299 33.22 245 27.22 299 33.22
Sl.No 1
Very Good 57 6.33 49 5.44 71 7.89 55 6.11 84 9.33
Total 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0 900 100.0 0
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table A3.5 Opinion about Attributes of Staff behavior in selected districts. 1. Courtesy Response Poor Average Good Total Response Poor Average Good Total Response Poor Average Good Total Response Poor Average Good Total Response Poor Average Good Total District Gulbarga Bidar Bellary 11.30% 7.05% 22.59% 28.57% 52.35% 45.85% 60.13% 40.60% 31.56% 100.00% 100.00% 100.00% 2. Honesty: Returning small change District Gulbarga Bidar Bellary 18.60% 6.71% 31.89% 35.22% 33.89% 34.88% 46.18% 59.40% 33.22% 100.00% 100.00% 100.00% 3. Honesty: Diligently issuing Tickets District Gulbarga Bidar Bellary 20.93% 10.07% 32.23% 37.54% 32.21% 43.52% 41.53% 57.72% 24.25% 100.00% 100.00% 100.00% 4. Helpful to: Women, Elderly and Children District Gulbarga Bidar Bellary 29.57% 18.46% 38.87% 33.22% 35.91% 43.85% 37.21% 45.64% 17.28% 100.00% 100.00% 100.00% 5. Discipline in stopping when required District Gulbarga Bidar Bellary 26.25% 9.06% 24.25% 31.56% 36.91% 44.19% 42.19% 54.03% 31.56% 100.00% 100.00% 100.00% Table A3.6 All 13.67% 42.22% 44.11% 100.00%
All 19.11% 34.67% 46.22% 100.00%
All 21.11% 37.78% 41.11% 100.00%
All 29.00% 37.67% 33.33% 100.00%
All 19.89% 37.56% 42.56% 100.00%
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Rating of NE-KnRTC and Private Buses on selected set of service quality attributes Transport Services Sl. NEPrivate No Total No. Service Quality KnRTC Difference N 589 258 53 900 1 Comfortable Seating Row % 65.44 28.67 5.89 100.00 N 635 211 54 900 2 Leg room between seats Row % 70.56 23.44 6.00 100.00 N 620 229 51 900 3 Convenient places for boarding Row % 68.89 25.44 5.67 100.00 N 590 245 65 900 4 Convenient places for alighting Row % 65.56 27.22 7.22 100.00 N 464 266 170 900 Convenient stops during the journey 5 for snacks/coffee/lunch/dinner Row % 51.56 29.56 18.89 100.00 Passenger need based stops for N 311 381 208 900 6 relaxation and attending toilet Row % requirements 34.56 42.33 23.11 100.00 N 143 670 87 900 Better quality entertainment like 7 music/video Row % 15.89 74.44 9.67 100.00 N 426 372 102 900 8 Easy ticketing facility Row % 47.33 41.33 11.33 100.00 N 243 617 40 900 9 Cost effectiveness - Reasonable fare Row % 27.00 68.56 4.44 100.00 N 439 314 146 899 10 Less travel time Row % 48.78 34.89 16.22 99.89 N 386 287 227 900 Convenient departure and arrival 11 timings Row % 42.89 31.89 25.22 100.00 N 379 395 125 899 12 Cleanliness of interior Row % 42.11 43.89 13.89 99.89 N 404 408 88 900 13 Cleanliness of exterior Row % 44.89 45.33 9.78 100.00 N 422 276 202 900 14 Easy placement of luggage Row % 46.89 30.67 22.44 100.00 N 464 228 207 899 Driving is smooth and safe and less 15 of rash driving Row % 51.56 25.33 23.00 99.89 N 622 182 96 900 Courteous and well mannered 16 crew/staff Row % 69.11 20.22 10.67 100.00
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table A3.7 Desirable Functional freedom and autonomy in NE-KnRTC to provide efficient and costeffective transport services Sl. Functional Freedom District No. Gulbarga Bidar Bellary Total 1 N 131 135 227 493 They can revise fares for reasons beyond their control - like increase in diesel Row price/input costs % 26.57 27.38 46.04 100.00 2 N 185 237 127 549 Deciding the routes and their frequencies Row % 33.70 43.17 23.13 100.00 3 N 151 194 192 537 Having differential services for various Row customer segments % 28.12 36.13 35.75 100.00 4 N 185 180 174 539 Deciding different fares for off-peak and Row other special services % 34.32 33.40 32.28 100.00 5 N 92 125 82 299 Cancellation of schedules/trips/services Row when there is no demand % 30.77 41.81 27.42 100.00
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ APPENDIX B Table B3.1 Socio-Economic Characteristics District Gulbarga Bidar Bellary Total Number Percent Number Percent Number Percent Number Percent 26 25.49 23 22.77 27 24.77 76 24.36 30 29.41 58 57.43 65 59.63 153 49.04 42 41.18 17 16.83 17 15.60 76 24.36 3 68 33 1 52 45 3 86 15 1 9 21 61 9 1 29 54 16 1 101 2.97 67.33 32.67 0.99 51.49 44.55 2.97 85.15 14.85 0.99 8.91 20.79 60.40 8.91 0.99 28.71 53.47 15.84 0.99 100.00 0 65 44 1 55 50 3 102 7 3 11 15 53 27 9 27 73 0 0 109 0.00 59.63 40.37 0.92 50.46 45.87 2.75 93.58 6.42 2.75 10.09 13.76 48.62 24.77 8.26 24.77 66.97 0.00 0.00 100.00 7 184 128 2 152 149 9 263 49 6 34 52 169 51 13 89 192 16 2 312 2.24 58.97 41.03 0.64 48.72 47.76 2.88 84.29 15.71 1.92 10.90 16.67 54.17 16.35 4.17 28.53 61.54 5.13 0.64 100.00
1. Occupation Housewife Govt. Service School/Hospital Elected 4 3.92 Representative 2. Gender Male 51 50.00 Female 51 50.00 3. Age Groups (Years) Up to 20 Years 0 0.00 20-35 Years 45 44.12 35-50 Years 54 52.94 50-65 Years 3 2.94 4. Residential Status Urban 75 73.53 Rural 27 26.47 5. Educational Qualification Illiterate 2 1.96 Primary School 14 13.73 High school 16 15.69 Graduation 55 53.92 Post Graduation 15 14.71 6. Family Monthly Income (Rs.) Less than 2000 3 2.94 20001-5000 33 32.35 5000-10000 65 63.73 10001-15000 0 0.00 More than 1 0.98 15000 Sample Size 102 100.00
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table B3.2 Opinion Makers responses to the Public Transport Statements S.NO Public Transport Statement Public should be encouraged to use personalized vehicles than relying on Public Transport The condition of Roads in my area is pathetic/very bad There is a heavy misuse of Bus passes by passengers Smaller vehicles are better suited than normal buses for rural areas Because of shortage of Buses in NEKnRTC people are forced to use personalized vehicles N Row% N Row% N Row% N Row% N Row% Strongly Disagree 2 0.64 20 6.41 3 0.96 2 0.64 6 1.92 Opinion Disagree Uncertain Agree Strongly / Neutral Agree 45 14.42 41 13.14 35 11.22 30 9.62 24 7.69 110 35.26 111 35.58 107 34.29 104 33.33 100 32.05 147 47.12 116 37.18 143 45.83 152 48.72 164 52.56 8 2.56 24 7.69 24 7.69 24 7.69 18 5.77
2 3
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table B3.3 Opinion Makers responses to the Public Transport Statements by district Statement 1). Public should be encouraged to use personalized vehicles than relying on Public Transport 2). Because of shortage of Buses in NE-KnRTC people are forced to use personalized vehicles 3). The condition of Roads in my area is pathetic/very bad 4). There is a heavy misuse of Bus passes by passengers 5). Smaller vehicles are better suited than normal buses for rural areas Response Disagree Uncertain Agree Disagree Uncertain Agree Disagree Uncertain Agree Disagree Uncertain Agree Disagree Uncertain Agree Gulbarga 16.67% 35.29% 48.04% 9.80% 29.41% 60.78% 25.49% 36.27% 38.24% 10.78% 31.37% 57.84% 10.78% 31.37% 57.84% Division Bidar 13.86% 44.55% 41.58% 14.85% 27.72% 57.43% 17.82% 33.66% 48.51% 13.86% 28.71% 57.43% 13.86% 28.71% 57.43% Bellary 14.68% 26.61% 58.72% 4.59% 38.53% 56.88% 15.60% 36.70% 47.71% 6.42% 39.45% 54.13% 6.42% 39.45% 54.13% All 15.06% 35.26% 49.68% 9.62% 32.05% 58.33% 19.55% 35.58% 44.87% 10.26% 33.33% 56.41% 10.26% 33.33% 56.41%
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table B3.4 Opinion about the quality of NE-KnRTC Services Opinion Attributes of NES.No KnRTC Services Punctuality 1 2 3 4 5 6 7 8 9 10 11 12 N Row% Speed N Row% Frequency N Row% Seat Availability N Row% Fare (Cost of the N Ticket) Row% Reliability N Row% Convenient Timings N Row% Comfort in the Bus N Row% Facilities in Bus N Shelter/Stand/Terminus Row% Number of Stops during N the journey Row% Handling of Luggage N Row% Providing the best N services to the public Row% Very Poor 5 1.60 4 1.30 6 1.90 11 3.50 39 12.50 11 3.50 15 4.80 8 2.60 11 3.50 8 2.60 9 2.90 10 3.20 Poor 38 12.20 52 16.70 71 22.80 71 22.80 64 20.50 72 23.10 70 22.40 60 19.20 65 20.80 48 15.40 51 16.30 43 13.80 Average 134 42.90 140 44.90 127 40.70 148 47.40 128 41.00 142 45.50 143 45.80 148 47.40 117 37.50 150 48.10 128 41.00 146 46.80 Good 133 42.60 103 33.00 101 32.40 74 23.70 78 25.00 85 27.20 80 25.60 90 28.80 112 35.90 100 32.10 117 37.50 107 34.30 Very Good 2 0.60 13 4.20 7 2.20 8 2.60 3 1.00 2 0.60 4 1.30 6 1.90 7 2.20 6 1.90 7 2.20 6 1.90 Total 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00 312 100.00
86
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table B3.5 Rating of NE-KnRTC Buses and Private Operators on selected Service Quality Attributes Facilities offered by NENo Private Total S.No Bus Operators KnRTC Difference Timings of bus/ N 245 46 21 312 1 convenient departure 78.53 14.74 6.73 100.00 and arrival Row% Reliability of service N 231 59 22 312 2 (on time Departure 74.04 18.91 7.05 100.00 and Arrival) Row% Fare (Cost of the N 154 134 24 312 3 Ticket) Row% 49.36 42.95 7.69 100.00 Easy ticketing facility N 211 66 35 312 4 Row% 67.63 21.15 11.22 100.00 Comfort in the bus / N 185 85 42 312 5 Comfortable seating Row% 59.29 27.24 13.46 100.00 More legroom N 165 96 51 312 6 between seats Row% 52.88 30.77 16.35 100.00 Easy placement of N 182 84 46 312 7 luggage Row% 58.33 26.92 14.74 100.00 Facilities in Bus N 210 72 30 312 8 Shelter / Stand / 67.31 23.08 9.62 100.00 Terminus Row% Convenient places for N 221 60 31 312 9 boarding Row% 70.83 19.23 9.94 100.00 Convenient places for N 213 53 46 312 10 alighting Row% 68.27 16.99 14.74 100.00 Safety of the N 211 50 51 312 11 journey / Lesser rash 67.63 16.03 16.35 100.00 driving Row% Passenger friendly N 198 63 51 312 12 behavior of the staff Row% 63.46 20.19 16.35 100.00 Convenient stops N 183 72 57 312 during journey for 13 snacks / Lunch / 58.65 23.08 18.27 100.00 Dinner Row% 14 N 153 88 71 312
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Passenger need based stops for relaxation / toilet requirements Better quality entertainment like music / video films Better value for money Cleanliness of interior Cleanliness of exterior 49.04 Row% N Row% N Row% N Row% N Row% 61 19.55 146 46.79 179 57.37 205 65.71 28.21 173 55.45 115 36.86 108 34.62 85 27.24 22.76 78 25.00 51 16.35 25 8.01 22 7.05 100.00 312 100.00 312 100.00 312 100.00 312 100.00
15 16 17 18
88
Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ APPENDEX C Table C3.1 Rating of NE-KnRTC Buses and Private Operators on selected Service Quality Attributes S.No Facilities offered by Bus Operators NE-KnRTC N 260 Timings of bus/ convenient departure 1 and arrival Row % 85.25 N 240 Reliability of service (on time 2 Departure and Arrival) Row % 78.69 N 163 3 Fare (Cost of the Ticket) Row % 53.44 N 198 4 Easy ticketing facility Row % 64.92 N 193 Comfort in the bus / Comfortable 5 seating Row % 63.28 N 212 6 More legroom between seats Row % 69.51 N 218 7 Easy placement of luggage Row % 71.48 N 250 Facilities in Bus Shelter / Stand / 8 Terminus Row % 81.97 N 254 9 Convenient places for boarding Row % 83.28 N 259 10 Convenient places for alighting Row % 84.92 N 220 Safety of the journey / Lesser rash 11 driving Row % 72.13 N 205 Passenger friendly behavior of the 12 staff Row % 67.21 N 176 Convenient stops during journey for 13 snacks / Lunch / Dinner Row % 57.70 N 133 Passenger need based stops for 14 relaxation / toilet requirements Row % 43.61 N 38 Better quality entertainment like 15 music / video films Row % 12.46 No Private Difference 42 3 13.77 0.98 57 8 18.69 2.62 105 37 34.43 12.13 76 31 24.92 10.16 81 31 26.56 10.16 66 27 21.64 8.85 61 26 20.00 8.52 39 16 12.79 5.25 31 20 10.16 6.56 29 17 9.51 5.57 38 47 12.46 15.41 41 59 13.44 19.34 31 98 10.16 32.13 39 133 12.79 43.61 170 97 55.74 31.80 Total 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00 305 100.00
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ 16 Better value for money 17 Cleanliness of interior 18 Cleanliness of exterior N Row % N Row % N Row % 201 65.90 139 45.57 143 46.89 62 20.33 152 49.84 149 48.85 42 13.77 14 4.59 13 4.26 305 100.00 305 100.00 305 100.00
Table C3.2 Comparison of quality facilities provided by Public and Private Operators Gulbarga Bidar Bellary All A) Better facilities from Private Operators 1. Better quality entertainment like music / 57.4% 59.2% 50.5% 55.7% video films, 2. Cleanliness of interior and 66.3% 63.1% 19.8% 49.8% 3. Cleanliness of exterior 65.3% 64.1% 16.8% 48.9% B) NE-KnRTC services provide facilities over private operators 64.4% 67.0% 58.4% 63.3% 1. Comfort in the bus / Comfortable seating 60.4% 72.8% 61.4% 64.9% 2. Easy ticketing facility 3. Fare (Cost of the Ticket 54.50% 54.40% 51.50% 53.40% C) NE-KnRTC unique facilities 1. Timings of bus/ convenient departure and 72.3% 92.2% 91.1% 85.2% arrival 2. Convenient places for alighting 79.2% 87.4% 88.1% 84.9% 3. Convenient places for boarding 79.2% 87.4% 83.2% 83.3% 4. Facilities in Bus Shelter / Stand / Terminus 78.2% 82.5% 85.1% 82.0% 5. Safety of the journey / less rash driving 59.4% 81.6% 75.2% 72.1%
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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Table C3.3 Opinion on selected statements related to the organization by district District Statement Response Gulbarga Bidar Bellary Disagree 12.9% 14.6% 3.0% 1.This division is successful in Neutral 12.9% 28.2% 11.9% meeting competition Agree 74.26% 57.28% 85.15% Disagree 9.9% 8.7% 3.0% Neutral 49.5% 32.0% 14.9% 2.Higher revenue is possible through better traffic management Agree 40.59% 59.22% 82.18% Disagree 31.7% 10.7% 6.9% 3.My daily targets are achievable Neutral 32.7% 27.2% 34.7% Agree 35.64% 62.14% 58.42% Disagree 29.7% 6.8% 7.9% 4.Daily collection incentive is Neutral 30.7% 29.1% 19.8% well thought out move Agree 39.60% 64.08% 72.28% Disagree 25.7% 7.8% 5.0% 5. My superiors are fair in duty Neutral 26.7% 22.3% 28.7% allotment Agree 47.52% 69.90% 66.34% Disagree 31.7% 4.9% 8.9% 6. Our procedures for dealing with administrative problems are Neutral 25.7% 29.1% 28.7% fair and transparent Agree 42.57% 66.02% 62.38% Disagree 26.7% 3.9% 10.9% 7.Vigilance is effective in curbing Neutral 29.7% 17.5% 28.7% pilferage Agree 43.56% 78.64% 60.40% Disagree 29.7% 6.8% 11.9% 8.Passengers are mainly Neutral 36.6% 23.3% 24.8% responsible for pilferage Agree 33.66% 69.90% 63.37% Disagree 50.5% 18.4% 16.8% 9.Pilferage is still there in the division in spite of vigilance Neutral 16.8% 30.1% 22.8% actions Agree 32.67% 51.46% 60.40% Disagree 56.4% 41.7% 20.8% 10. Role of the crew in pilferage Neutral 15.8% 9.7% 17.8% is true Agree 27.72% 48.54% 61.39% Disagree 56.4% 39.8% 15.8% 11. Absenteeism in this division Neutral 13.9% 11.7% 11.9% is high Agree 29.70% 48.54% 72.28%
All 10.2% 17.7% 72.13% 7.2% 32.1% 60.66% 16.4% 31.5% 52.13% 14.8% 26.6% 58.69% 12.8% 25.9% 61.31% 15.1% 27.9% 57.05% 13.8% 25.2% 60.98% 16.1% 28.2% 55.74% 28.5% 23.3% 48.20% 39.7% 14.4% 45.90% 37.4% 12.5% 50.16%
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Report on North East Karnataka Road Transport Corporation

Prof. T. Venkata Ramanayya Prof. G. Ramesh

INDIAN INSTITUTE OF MANAGEMENT BANGALORE March 2008

Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

Indian Institute of Management Bangalore

Indian Institute of Management Bangalore

Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

Chapter 2 Secondary Data Analysis

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PSRTC 2004-05 84.30 2005-06 85.00 2006-07 95.30

NEKnRTC 100.00 95.50 95.40

BMTC 95.00 95.60 94.40

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Percentage of Over aged Buses

Indian Institute of Management Bangalore

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Indian Institute of Management Bangalore

Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

Figure 2.5 Fuel Performance (KMPL) in selected STRCs

3.00 2.00 1.00 0.00

Year 2004-05 2005-06 2006-07

PSRTC 0.07 0.06 0.24

NE-KnRTC 0.09 0.10 0.13

BMTC 0.19 0.17 0.14

Indian Institute of Management Bangalore

Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

Year 200405 200506 200607

Indian Institute of Management Bangalore

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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

Indian Institute of Management Bangalore

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S tate Road Transport C orporation

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Year 2004-05 2005-06 2006-07

100 80 60 40 20 0 PSRTC MSRTC KSRTC NW-KnRTC NE-KnRTC BMTC

SRTC 2004-05 2005-06 2006-07

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Chapter 3 Stake Holders Responses

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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________

3.1 Passengers 3.1.1 Socio-economic Characteristics of the Passengers

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Table 3.2 Frequency of traveling in a month

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N Col. % N Col. % N Col. % N Col. % N Col. %

N Col. % N Col. % N Col. % N Col. % N Col. %

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A. Satisfied Handling of Luggage Punctuality

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Report on North East Karnataka Road Transport Corporation ______________________________________________________________________ Speed

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Good 44.11% 46.22% 41.11% 33.33% 42.55%

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