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Right and the Need to Re-Orient India’s SRTUs

Right and the Need to Re-Orient India’s SRTUs

State Road Transport buses at a government depot in Krishnagiri, Tamil Nadu

India’s road network carries close to 90 per cent of the country’s passenger traffic and about 60 per cent of its freight. This sector also includes the socially important State Road Transport Undertakings (SRTUs), which have a modest share in India’s total fleet of buses but play an irreplaceable social role. By providing affordable transportation to a large majority of ordinary citizens, SRTUs open up opportunities for economic advancement. Although it is inevitable that such public undertakings with social obligations incur losses, their sustainable viability is equally important. In this article,  S. Raja Sethu Durai, Professor of Economics, University of Hyderabad, uses official data to analyse the reasons for their poor performance that go beyond social obligations and suggests ways to reinvent the services using inputs from best practices from India and elsewhere. Transport, he points out, is a service that enables citizens to access freedoms that are enshrined in the Constitution, and needs to be considered as a basic right. Some policy modifications that are required to improve the functioning of SRTUs include effective resource allocation, exploring new sources for revenue generation, and changes in the ownership and governance structures.

1. Introduction

Transportation is central to the nation-building process. Its role in economic development is significant in terms of its multiplier effect on employment and growth in GDP. From the lens of Nobel Laureate Amartya Sen’s ‘capabilities’ and ‘functioning’ logic, mobility should be considered as an equal opportunity tool and , by implication , a fundamental right. Access to low-cost and wide transport networks enhance the capability of individuals to move from one place to another. This opens up wider opportunities, expands their social and economic reach, and delivers several other advantages that increase their ‘function’, resulting in productivity gains for the economy.

“When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multiplier effects such as better accessibility to markets, employment, and additional <br/> investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities and lower quality of life.” 1

Within the transportation sector, the road segment has been a major driver of India’s economic growth since independence. Its cost-effectiveness makes it “the most preferred mode of transport.” Moreover, the “level of penetration into populated areas” plays a critical role in integrating India’s society and economy.

CORPORATIONSCOMPANIES
Andhra Pradesh SRTCKadamba TC Ltd.
Assam STCMetro TC (Chennai) Limited
Bangalore Metropolitan TCPUNBUS
Bihar SRTCState Exp.TC TN Ltd.
Calcutta STCTN STC (Coimbatore) Ltd.
Delhi TCTN STC (Kumbakonam) Ltd.
Gujarat SRTCTN STC (Madurai) Ltd.
Himachal RTCTN STC (Salem) Ltd.
J&K SRTCTN STC (Villupuram) Ltd.
Karnataka SRTCTN STC (Tirunelveli) Ltd.
Kerala SRTCGOVT DEPARTMENTS
Maharashtra SRTCAndaman & Nicobar ST
Meghalaya STCArunachal Pradesh ST
North Bengal STCChandigarh TU
North Eastern Karnataka RTCHaryana ST
North Western Karnataka RTCMizoram ST
Odisha SRTCNagaland ST
Pepsu RTCState Transport Punjab
Rajasthan SRTCSikkim NT
South Bengal STCMUNICIPAL UNDERTAKINGS
Telangana SRTCAhmedabad MTC
Tripura RTCBEST Undertaking
Uttar Pradesh SRTCKolahpur MTU
Uttarakhand TCNavi Mumbai MT
Puducherry Road Transport CorpPune Mahamandal
West Bengal Surface Transport Corp.Sholapur MT
SPECIAL PURPOSE VEHICLESThane MT
MEERUT CIY TSLKalyan Dombivali MT
KANPUR CITY TSLASSOCIATE MEMBERS

Himachal Pradesh TDCL

Delhi Integrated Multi-Modal Transit System Ltd.