A case study of BMC’S Success Story
Like other cities of the state, Bhavnagar too was operating the transport facilities for almost last six decades and more. In fact transport utility was operated by the railways, under the jurisdiction of Bhavnagar state. Initially 3-4 buses were catering to the peoples needs. After Independence in 1947,these facilities was handed over to the local body, which then operated two bus routes with three vehicles. Bedford and Mercedes were the prominent vehicle make during the early days. Local body also took special efforts to add two buses every year in order to cope up with increasing demand to reach the outer developing areas of the city. Maximum fleet strength reached was 31 buses in all. However, other priority needs of the fast developing city took its toll on this utility. Declining finances of the local body dwindled this fleet strength to a mere six in number ( Almost 20% of its highest). After 1982, when local body was transformed into Municipal corporation, efforts were made to increase the facilities by introducing used buses of the state transportation corporation. But this provided a short term relief and the buses made frequent trips to the garage then the city roads. The deficit with the employee’s burden and dwindling bus routes kept widening. Four new buses around 1987-1988 with special loan assistance under IDA loan of around Rs 55/ lacs helped to bring some relief. On this account the fleet strength increased marginally, the employee utilization too increased and as a result the revenue increased from Rs.17/ lacs to Rs.41/ lacs, but the expenditure too increased substantially. But the falling finances of the ULB did not permit it to further replace the remaining fleets, and inadequate allocations of funds for M & R worsened the transport facilities and several bus routes that were in operation were curtailed. In 1995 BMC took a radical decision to invite private operators to manage the transport utility. Unfortunately the endeavor did not yield satisfactory rewards. Facilities dwindled, as the routes were not adequately operated. However in 1998 BMC terminated the contract of the previous contractor, and after due transparent process handed over the services to another organization- Ms VTCOS.
| |
Effectiveness of the Private Organization
VTCOS, with its members as private transport operators was formed in 1997. The transport utility of the city was formerly handed over to the society on 19/7/2001.In the first phase 10 buses were gradually introduced, besides the 14 buses running then. Mini buses also formed the part of the fleet, and this endeavor proved highly beneficial as it incurred less operative expenditure and more convenient for the routes having lesser densities. Earnings rose by 10% a day for the initial month which greatly enthused the operators. Moreover the differential tax rates within the city limit for public transport also proved highly advantageous for the operators. Overall credibility gain amongst the people also gave a good boost to the organizers. As a consequence far flung areas of the city like Anandnagar, Bharatnagar, Kalvibid, Khumbharwada, which remained greatly deprived of cheaper transportation, now enjoy bus trips every 20-30 minutes interval. Slack summer months too, unlike previous years, failed to dampen the regular earnings of the transport utility. People assured of cheaper transport, differ traveling by rickshaws; as a result there is marginal decline in rickshaws plying on the city roads. The adjoining villages, namely Sidsar, Budhel, Nari, too have benefited substantially as city buses have reached their doorsteps providing greater connectivity to the urban areas. Special efforts are made by the company to plug ticket less travel by the commuters by engaging three to four checking squads with vehicles. A fine of Ra 20/ is levied on passenger traveling without tickets and strict warning is given to the conductor for the negligence and even dismissed abruptly if found indulging in wrong doings repeatedly. Vehicle breakdown receives immediate attentions and stand bye vehicle is immediately put into service, averting any disruption in traffic. Repeated announcement over microphone pertaining to arrivals and departures of the buses at the central bus station, keeps the people, especially the illiterates, well informed. At present VTCOS is operating 55 buses totally in service. Out of this five buses keeping for extra i.e. any one bus failed in route can be replaced by extra buses and uninterrupted bus services provided to the people of the city.
| |
Bhavnagar Municipal Corporation’s effort of privatizing public utility has paid rich dividends, not only to the shareholders of the transport cooperative society, but has also provided great relief to the people of the city through a cheaper mode of public transport. Besides, heavy deficit of the local body incurred every year has been averted permitting it to put its scarce finances to better use for other developmental works. Reduce traffic congestion due to less number of rickshaws plying on the city roads, besides the decline in pollution caused thereby, has been an additional boon to the city.