The ministry of road transport and highways is turning its attention to states now.
It is planning to strengthen the road transport corporations across states, it is learnt.
The ministry is likely to introduce a bill to amendthe Road Transport Corporation Act in the Budget session of parliament.
The transport corporations are governed by the Road Transport Corporation Act, 1950. “The amendment to the act aims at providing more financial freedom to the corporations, fillip to their working, and development of infrastructure,” said an official.
State corporations throughout the country face issues such as opposition in raising fares, taking loans, and are burdened with a number of concessions to the consumer. It is mandatory for the corporations to take the state cabinet’s approval for hiking fares. Also, they cannot raise loans unless there is a government guarantee. “All these issues will be addressed in the amendment. To mop up finances, the new rules may allow commercial use of property to the corporations,” said the official.
The government is also weighing various options to strengthen the board of the corporations. “There will be nominees from state traffic department, finance department, public work department, and transport department. There will also be representatives from union surface transport ministry and the planning commission,” said the official.
Provisions are being made for state governments to seek prior approval of the central government for initiating any proceeding of the liquidation of the corporation.Of the 53 total road corporations in the country, only 8 or 9 generate profits. However, these are earning only marginal profit or are at breakeven point. Karnataka, Andhra Pradesh and Uttar Pradesh come under this category.
The heavy loss-making ones are Delhi, Rajasthan, Punjab, Haryana, Himachal Pradesh and Madhya Pradesh.
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