SNT monopoly in revenue generation – CAG

SNT under CAG

20 April, Gangtok: The Sikkim Natiuonalised Transport (SNT) has sustained a loss of Rs 12.91 crores to its operational inefficiencies said CAG (Comptroller and Auditor general) in its report 2008-2009.

“The SNT can control the losses by taking adequate measures to improve the operational parameters and also resorting to tapping non-conventional sources of revenue”, suggested CAG.

The CAG has recommended the bleeding SNYT to improve fleet utilization, create a regulator to regulate fares and services on ecomomical routes, tap non-conventional sources of revenue and create separate cost centres for buses, trucks and tankers.
Till March 31 2009, the SNT had a fleet strength of 96 buses and 85 trucks and tankers and carried an average of two thousand passangers per day on average from 2004 to 2009.

Despite enjoying a monopoly in operation of buses in the state, the SNT failed to cater the growing demand of public transportation as there was a continuous decline in per capita km operated per year from 3.39 in 2004-05 to 2.39 in 2008-2009, the CAG said. The decline in share was mainly due to operational inefficiencies, the CAG said.

The CGA has also suggested the SNT to develop its 13,194 square meters of vacant land to earn steady income which can be used to cross-subsidized its operation.

source;sikkim express