SRTC revenue target suffers shortfall of Rs. 165.22 crore: CAG

Sanjeev K Sharma

JAMMU, Apr 18: Targets of operative fleet and revenue collection of Jammu and Kashmir State Road Transport Corporation (SRTC) during the period from 2014-15 to 2017-18 suffered shortfall ranging between 28 per cent to 33 per cent and 31 per cent and 37 per cent respectively, while the overall shortfall in achievement of target of revenue during the same period remained at Rs. 165.22 crore.
This was stated by Comptroller and Auditor General of India (CAG) in his annual report.
The yearly targets are fixed by the Planning Wing of the Corporation based on the monthly performance reports which are received from the operating units. However, the Corporation fixed these targets without consulting the unit heads.
“The targets fixed during the period 2014-15 to 2017-18 for operation of the fleet ranged between 71 and 84 per cent of the available fleet. Even these targets for the operative fleet were not fully achieved. Shortfall in achievement of targets of the operative fleet during the period 2014-15 and 2017-18 ranged between 28 per cent and 33 per cent,” the CAG reported said adding: “Accordingly, the shortfall in revenue collection also ranged between 31 per cent and 37 per cent against the fixed targets.
The overall shortfall in achievement of targeted revenue collection during the period 2014-15 to 2017-18 was Rs 165.22 crore, although targets were set after keeping into consideration the detention of vehicles for repair and maintenance in workshop while targets for 2018-19 were not set.”
The report informed that in reply the SRTC Managing Director stated in January 2020 that due to over-aged fleet, frequent off-roading, shortage of manpower and turmoil in Valley, the operational and financial targets were not achieved.
“The fact remains that before fixing the targets, the Corporation should have taken into consideration the constraints like over-aged fleet, shortage of manpower etc,” the CAG report pointed out.
Scrutiny of records in sampled units and Depot (including Sub-Depots) revealed that the targets fixed during the period from 2014-15 to 2017-18 ranged between 65 per cent and 87 per cent of the common fleet available for these units and the shortfall in achievements of targets of operative fleet during the same period ranged between 15 per cent and 69 per cent with overall shortfall in projected revenue collection fell to the extent of Rs 119.20 crore.
The CAG categorically mentioned in its report that the highest shortfall in achievement of targets of operative fleet was observed in Doda Depot of SRTC, where the shortfall ranged between 64 per cent and 69 per cent.
“The Managing Director also stated in January 2020 that buses are kept parked to meet the Government’s demand on special/emergent occasions. It was also stated that on intra-district routes, Corporation face stiff competition from Light Commercial Vehicles (LCVs)/private operators. However, transport facility was provided on unproductive routes for convenience of the public,” the CAG report stated.
“Reasons for parking of buses were also attributed to frequent hartals, aged fleet being unable to compete with new good quality LCVs/buses and detention of vehicles and manpower,” it further stated claiming that the reply of the Managing Director was not tenable as the Corporation is a commercial organization and is bound to face competition from private entities.
“Further, the Corporation needs to upgrade its fleet by proper funding either by burrowing or seeking assistance from the Government,” the annual CAG report continued.