State Road Transport Undertakings in India:Critical Issues, Constraints and Emerging Option

A scrutiny of the financial performance of State Road Transport Undertakings in India in the past decade reveals a trend of increasing losses which could be partly attributed to inefficiency and partly to uncompensated burden of social obligations and constraints in the external operating environment. Analytical exercises involving physical and financial parameters have pointed out the need for better vehicle utilisation (in terms of the load factor) and an effective fare strategy in order to set the organisations on a long-term viable growth path. However, this needs to be accompanied by a process of 'major systemic' reforms in terms of the policy guidelines imposed on these Undertakings.