Calcutta, June 8: The state government has decided to merge five transport corporations with the aim of streamlining the sector and cutting subsidies, but many wondered if there would be the professionalism required to reduce losses.
The proposed merger of the Calcutta Tramways Corporation (CTC), the West Bengal Surface Transport Corporation (WBSTC), the Calcutta State Transport Corporation (CSTC), the North Bengal State Transport Corporation (NBSTC) and the South Bengal State Transport Corporation (SBSTC) is expected to facilitate better utilisation of the fleet and effective management of the staff under one command structure. The five corporations have around 3,500 buses that ply on the roads.
In the last financial year, the government had to pay subsidies totalling around Rs 650 crore to the five corporations to make up for losses of an equal amount.
Transport department sources said the government's income from the buses was much less than its expenditure because of alleged improper utilisation of manpower and unplanned route management, among other things.
"Our effort is to cut down on costs. This amalgamation will not affect the employees by any means. They will continue to work like they are doing now," chief minister Mamata Banerjee said today.
"When I can manage with one house, why should I maintain three? We have to use taxpayers' money judiciously. We have to continue with ongoing schemes and those that have been announced and also repay interest on central loans," she added.
Officials pointed out that any merger creates a synergy that results in rationalisation of costs, but tough decisions need to be taken so that the purpose is served. They said clear-cut routes and well-spaced-out timings needed to be worked out so that buses are evenly distributed over areas and they get adequate amount of passengers.
As the first step towards the merger, it has been decided there will be a common board of directors for the CTC, the CTSC and the WBSTC.
Rachpal Singh, former IPS officer and the Trinamul MLA from Tarakeswar, has been made the chairman of the integrated board. Swarnakamal Saha, the Trinamul MLA from Entally and former president of the Bengal Bus Syndicate, has been appointed the vice-chairman. MLAs Sujit Bose and Nayana Bandopadhyay have been made directors of the board.
The transport department has hired the law firm Fox & Mandal to work out the technicalities the government will have to follow for the amalgamation of the three corporations. While the CSTC had been set up under the Road Transport Corporations Act, 1950, the rest of the transport corporations are guided by the Companies Act.
In 2012, the transport department had hired the services of the consultancy firm Jones Lang LaSalle to draw up a report on how to integrate the CTC, the CTSC and the WBSTC. The move announced today is based on the report submitted by the firm.
Parcels of land at four CTC depots were sold to raise money to fund a VRS scheme.
