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The IUP Journal of Accounting Research and Audit Practices:

Sustaining Through Subsidies: An Analysis of the Growth Performance of Public Bus Transportation Services in West Bengal

Article Details

Pub. Date	: July, 2023
Product Name	: The IUP Journal of Accounting Research and Audit Practices
Product Type	: Article
Product Code	: IJARAP030723
Author Name	: Partha Ghosh
Availability	: YES
Subject/Domain	: Finance
Download Format	: PDF Format
No. of Pages	: 14

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Abstract

The public sector passenger road transport services in India have been established with the aim of providing economical, adequate and sustainable services to the commuters. It is a well-known fact that State Road Transport Undertakings (SRTUs) have become nonprofitable and are a heavy burden on government exchequers. In this context, SRTUs cannot be sustained unless they adopt a professional approach through policy initiatives. The paper examines the growth performance of three SRTUs in West Bengal, India. The objective is to identify the factors and investigate their operational implications for service cost and revenue of selected SRTUs. The results reveal that the annual income of the corporations was not sufficient to meet even half of the annual operating costs and that there exists a significant difference in the performance patterns of the selected SRTUs.

Description

After India's independence, the need for a planned and reasonable public transport structure was felt. Hence, the Road Transport Corporations Act was enacted in 1950 to provide for the incorporation and regulation of state transport corporations in all states. With the growth of State Road Transport Undertakings (SRTUs), there was a strong need to deal with the various issues faced by SRTUs like support, procurement, reliability and familiarity. These led to the setting up of a common platform, i.e., Association of State Road Transport Undertakings (ASRTUs) in 1965. Technology ensured the modernization of bus services, such as low-floor buses, international standard buses, information technology-based advanced booking system, green fuels, electronic vehicles, electronic ticketing and sustainable mass transportation.