Shillong, Nov. 28: An Assembly committee has been set up to look into the recurring losses of the Meghalaya Transport Corporation (MTC) and suggest remedies.

The report of the Assembly committee on public undertakings related to the MTC has revealed that the corporation was a loss-making unit because of excess staff strength and pension liabilities.

The report tabled in the state Assembly on Friday said the main liability of the corporation was on account of the salaries paid to the ministerial and the mechanical staff. The expenditure incurred by way of salary exceeds the earnings of the corporation.

“The average operating cost for the past three years from 2007-08 to 2009-10 is more than double compared to the average traffic earning. The MTC should consider phase-wise voluntary retirement scheme (VRS) of the ministerial and the mechanical staff. This issue needs a serious thought as the high cost of operation is incurred because of excess staff,” the report said.

The corporation also has the pension liability of Rs 15.22 lakh per month for the government employees who were absorbed in and retired from the corporation. The government is paying only 50 per cent of the cost and the remaining has to be borne by the corporation.

According to the action plan, the corporation had already urged the government to take over the liabilities of the pensioners.

The Assembly committee said the government subsidy without doubt constituted a major portion in the elements of revenue of the corporation. “This is not a healthy sign and, therefore, steps should be taken to minimise its dependence for subsidy from the state government,” the report said.

The committee said there were various scopes the corporation could explore to increase its revenue generation.

However, the right steps should be taken at the earliest to find new avenues other than conventional means for increasing its revenue. Innovative measures like putting up hoardings on buses, opening of shopping malls in all the transport complexes in the state wherever feasible could be some of the means.“It is time the corporation introduced goods transport as there was a bright scope of earning more revenue from this source,” the report said.

In order to achieve the desired results and to cut down expenditure to the minimum in carrying out the action plan and programmes drawn, the corporation should improve its administrative functions and take appropriate steps to ensure discipline in MTC, the report recommended. “Only a dedicated and sincere workforce can ensure the corporation to be self-sufficient and earn more revenue.”

Referring to the action plan of the corporation which was submitted to the government, the committee said it was expected that with the implementation of the action plan prepared and approved by the officials, the corporation was expected to improve its functioning and earnings.

However, “otherwise, the committee will be compelled to suggest to the government for its closure, or the government may find out alternative means for its improvement”.