MSRTC suffered Rs 1331.26cr losses in 2002-07: CAG

MSRTC suffered Rs 1331.26cr losses in 2002-07: CAG
PTI
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First Published: Tue, Jan 06 2009. 12 36 PM IST
Updated: Tue, Jan 06 2009. 12 36 PM IST
Nagpur: The Maharashtra State Road Transport Corporation (MSRTC) has suffered losses to the tune of Rs1331.26 crores in the period 2002-07, the Comptroller and Auditor General of India (CAG) said in its annual report for the year 2007.
According to the observations in the CAG report, the losses suffered by the MSRTC are due to operation of uneconomical routes, excess consumption of fuel, unviable city and janata service, and reduction in load factor of Irizer buses besides other problems plaguing this public entity.
Squarely blaming the state government for operating buses on uneconomical routes, the report said the state transport has suffered losses of Rs968.47 crores over a period of five years between year 2002-03 to 2006-07 due to operating service as obligatory trips where the earning per kilometre (EPKM) was less than Cost Per KM (CPKM).
The report said that a loss of Rs27.1 cr was due to the avoidable delays in repairs and maintenance of vehicles and of Rs19,000, 000 following premature failure of reconditioned engines.
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First Published: Tue, Jan 06 2009. 12 36 PM IST