HRTC accumulation loss of Rs 1,018.64 Crore : CAG

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Himachal Pradesh Road Transport Corporation (HRTC) one of the three most loss making undertaking resulted the accumulated loss of Rs 1,018.4 crore owing to poor operational efficiencies and productivity, this was stated by Principal Audit General of Himachal Pradesh, Mr. J M. Johri while releasing Comptroller and Audit General (C&AG) report in a press conference today.

 

Declaring the performance audit done for last six years on HRTC he said that whooping accumulation of losses revealed in report as the potential state transport services rendering heavy losses due to poor operational efficiencies and productivity. A fare structure that did not adequately match operational expenses and lack of a mechanism for route analysis before allotment between HRTC and private operators to encourage bunching of profitable routes with uneconomical ones resulted in accumulation of losses of Rs 1,018.64 Cr during the period of 2011 to 2016 to the HRTC, CAG audit para says.

 

”The operational performance of the Corporation was below the Indian Average in respect of hill states  in respect of vehicle productivity achievement of scheduled kilometer and fuel costs which resulted in  depriving the HRTC of potential revenue of Rs 579.23 Cr.” Mr. Johri said that no criteria had been determined to ascertained which routes were to be allotted to HRTC and which to the private Operators.  Audit analysis brought out that only ten percent of route frequencies between district headquarters and tourist destinations with maximum flow of commuters were allotted to the HRTC.

 

However 90 p c profitable routes lies with the private operators. There is no mechanism in place to ensure that burden of uneconomical routes were equitably shared by both state and private transporters in the State. Further no mechanism had been established to ensure the responsibility  of the price of a route permit and they were being allotted on the adhoc basis, audit para revealed. Mr. Johri said pricing of profitable routes at the higher prices and inviting the bids may generate more revenue to the State.

 

Poor enforcement of judicial decisions as well as the provisions of the Motor Vehicle Act relating to installation of speed governors and vehicles deprived the corporation of potential traffic revenues of Rs 313.29 Cr  during they audit period of 2011-16. Inconsistencies in recording of dead  kilometers between ISBT Delhi and Parking space in Jagatpur brought out loss of Rs 2.14 Cr  on account of extra dead mileage during the period of five years ended on 2016. The Corporation consumed 498.38 Cr lakh liters of Excess of the all India average during 2011-16 resulting in extra  expenditure of Rs 240.02 Cr.

 

The State Government compensates the HRTC for concessions and free passes for various sections of society. However the HRTC submitted its claims only on estimation basis and not on actuals as the out of total estimated claims of Rs 1,111.11 Cr during the 2011-16 the State Government reimbursed Rs 895 Cr leaving Rs 216.66 Cr uncovered.