Transport Department

Policy Note - 2004 - 2005

Demand No. 46

1.0 Introduction

Transport is the essential convenience with which people not just connect but progress. Throughout history, people's progress has been sustained on the convenience, speed and safety of the modes of transport. Road transport occupies a primary place in to-day's world as it provides a reach unparalled by any other contemporary mode of transport.

The Transport Department has control over 7 State Transport Undertakings, Transport Development Finance Corporation Limited, Pallavan Transport Consultancy Services Limited, Institute of Road Transport, and the Motor Vehicles Maintenance Department.

The Transport Department is also the Nodal Agency of the State Government in respect of projects implemented by the Southern Railway, Departments of Postal and Tele-communications and the Civil Aviation of the Government of , in the State of Tamil Nadu.

2. 0 State Transport Undertakings:

2. 1 Till 1971, State Transport operations were under the control of Tamil Nadu Government. After 1971, this was entrusted to various Transport Corporations registered under the Companies Act, 1956.

The Pattabiraman Committee in 1976 and the Thillainayagam Committee in 1990 gave various recommendations for the improvement of the State Transport Undertakings and they were implemented wherever possible.

2. 2 As on 31.3.2004, the State Transport Undertakings are offering the following services and their performance is as below:

Chennai Metro – City services 2554

Town Services (in Districts) 5633

Mofussil services 5807

Express services

Inside State 525

Outside State 278

Ghat services 519

------Total services 15316

Spare buses 1348

------

Total Fleet Strength 16664

2. Total Kilometre operated 63.90 per day (lakh KM.)

3. Total Passengers carried 160.33 per day (in lakhs)

4. % Fleet utilisation 92.17%

5. Kilometre efficiency 97.82% (excluding specials)

6. Kilometre efficiency 101.74% (including specials)

7. % Occupancy ratio a) City & Town 64.23 % b) Mofussil 84.79 % c) Express 75.67 % d) Ghat 97.60 %

Overall 80.57 %

8. Breakdown per 10,000 Km 0.23

9. Accidents per 1,00,000 Km 0.32

Total accidents 7537

Fatal accidents 1269

No of persons dead 1446

10. Fuel performance (KMPL) a) City & Town 4.27 b) Mofussil 4.65 c) Express 4.46 d) Ghat 3.51

Average 4.42

11. Engine oil per 10,000 Km 9.58 litres

12. Km run per condemned tyre 1.58 lakh Km

13. Retreading Factor 4.06

14. Men per bus including workshop 7.02

2. 3 Amalamation of State Transport Undertakings:

In order to reduce the administrative overhead and to avoid wasteful competition in the operation of services among the corporations, the Government have decided to amalgamate 21 Transport Corporations into 7 Transport Corporations. The Government of India notified the amalgamation of the State Transport Undertakings. The amalgamated set up is detailed below:-

Name of the Date of S No Name of Corporation amalgamated amalagama-tion Corporations Metropolitan Transport 1 Corporation (Chennai- 1 Division I) Ltd., Metropolitan Chennai. Transport 10.1. 2001 Metropolitan Transport Corporation Corporation (Chennai- 2 Division II) Ltd., (Chennai) Ltd. Chennai. Chennai. State Express Transport 2 Corporation (Tamil 3 Nadu Division I) Ltd, Chennai State Express 12.1.2002 State Express Transport Transport Corporation (Tamil Corporation (Tamil 4 Nadu Division II) Ltd, Chennai Nadu) Ltd, Chennai Tamil Nadu State 3 Transport Corporation 5 (Villupuram Division I) Ltd, Villupuram Tamil Nadu State Tamil Nadu State Transport 30.12.2003 Transport Corporation 6 (Villupuram Division II) Corporation Ltd, Vellore (Villupuram) Ltd, 7 Tamil Nadu State Villupuram Transport Corporation (Villupuram Division III) Ltd, Kanchipuram Tamil Nadu State Transport Corporation 8 (Salem Division I) Ltd, Salem 4 Tamil Nadu State Transport Corporation 30.12.2003 Tamil Nadu State (Salem Division II) Ltd, 9 Dharmapuri Transport Corporation (Salem) Ltd, Salem Tamil Nadu State 30.12.2003 Transport Corporation 10 (Coimbatore Division I) Ltd, Coimbatore Tamil Nadu State Transport Corporation

11 (Coimbatore Division II) Ltd, Erode 5 Tamil Nadu State Tamil Nadu State Transport Corporation Transport (Coimbatore Division III) Corporation Ltd,Uthagamandalam. (Coimbatore) Ltd, 12 Coimbatore

7.11.2000 Tamil Nadu State Transport Corporation 13 ( Division I) Ltd, Kumbakonam Tamil Nadu State 6 Transport Corporation 14 (Kumbakonam Division Tamil Nadu State II) Ltd, Trichy Transport 30.12.2003 Tamil Nadu State Transport Corporation Corporation (Kumba- 15 (Kumbakonam Division konam)Ltd, III) Ltd, Karaikudi Kumbakonam Tamil Nadu State Transport Corporation 16 (Kumbakonam Division IV) Ltd, Pudukkottai Tamil Nadu State 7 Transport Corporation 17 (Madurai Division I) Ltd, 6.1.2004 Madurai Tamil Nadu State Tamil Nadu State Transport Transport Corporation Corporation 18 (Madurai Division II) Ltd, Tirunelveli (Madurai) Ltd, Tamil Nadu State Madurai Transport Corporation 19 (Madurai Division III) Ltd, Nagercoil Tamil Nadu State 20 Transport Corporation (Madurai Division IV) Ltd, Dindigul Tamil Nadu State Transport Corporation 21 (Madurai Division V) Ltd, Virudhunagar

3.0 Financial Position of the State Transport Undertakings:

3.1 Due to increase in the establishment and operational costs, the overall expenditure of the State Transport Undertakings have continuously increased. On the other hand, as there has been no fare revision, the income did not increase. As such all the State Transport Undertakings are continuously incurring loss. The accumulated loss up to March 2004 (provisional) is Rs. 2166.39 Crores. The reason for this heavy loss is due to the large gap between the income and expenditure.

In the financial year 2002-2003, the State Transport Undertakings had incurred a loss of Rs.4.21 crores. On account of frequent revision of High Speed Diesel price by Oil companies, the State Transport Undertakings are likely to incur a loss of Rs.32.13 crores (Pre-Audit) during 2003-04.

3.2 Consumption of High Speed Diesel Oil and Lubricants

There is considerable improvement in use of High Speed Diesel Oil and lubricant and the Kilometre per Litre has improved from 4.37 (2002-03) to 4.45 (2003-04). The approximate savings on account of improvement in KMPL is around Rs.23.15 crores during 2003-04. The engine oil consumption per 10000 Kms. has come down from 11.09 litres to 9.58 litres during the current year.

3.3 Increase in Diesel cost

The Government of India periodically revise the price of the Petroleum products depending upon the varying global prices. But the bus fare is not raised periodically to commensurate with the increase in the cost of the Diesel and other petroleum products. The expenditure on consumption of diesel for the buses of State Transport Undertakings has gone up from Rs.1060.27 Crores in the year 2002-2003 to Rs.1186.20 Crores (provisional) in the year 2003-2004.

3.4 Supply of High Speed Diesel Oil at concessional rate by Indian Oil Corporation

The seven Tamil Nadu State Transport Corporations have entered an agreement with the Indian Oil Corporation Limited for the supply of High Speed Diesel at concessional rate. According to the terms and conditions of this agreement, the Indian Oil Corporation Limited has agreed to extend the concession of Rs.700/- per Kilolitre with effect from 1.10.2003 to 30.9.2004. In addition to this concession, the Indian Oil Corporation Limited has also agreed to maintain and upgrade the fueling facilities at their cost with the best available technology apart from upgrading the existing facilities of shelter and platform. Similar concession will also be extended by other Oil Companies like the Bharat Petroleum Corporation Limited and the Hindustan Petroleum Corporation Limited and by way of this concession the Tamil Nadu State Transport Undertakings will save an amount of Rs.36.00 crores during the period on fuel cost.

3.5 Increase in Establishment Expenditure Wage revisions are given to the employees of the Corporations through negotiated settlement. The average increase in emoluments for an employee in State Transport Undertakings on account of settlement effected from 01.09.1998 was Rs.835.00 per month and the total additional commitment per annum was Rs.231.00 crores. The establishment cost accounts for nearly 38% to 53% of the traffic revenue.

The establishment expenditure has been going up very steeply every year, even though there has been no appreciable increase in staff strength. The establishment cost which was at the level of Rs.388.00 Crores in the year1991-92 has gone upto Rs. 1395.45 Crores (provisional) for the year 2003-04.

3.6 Extent of coverage of expenditure

The State Transport Undertakings have not been able to increase the revenue on par with the increase of expenditure on establishment, diesel and other input costs. The Government of India have revised the price of Petroleum products many times since the bus fare was last revised in December 2001 by the State Transport Undertakings. However, the fares were not revised. Hence, the gap between the revenue and expenditure has been persistent.

3.7 Outstanding Liabilities

In order to keep up the operations, the State Transport Undertakings have to depend upon external borrowings, postpone payment to suppliers of fuel, spares etc, and commit default in payment of statutory liabilities and accident compensation. The State Transport Undertakings have fallen into a debt trap. The financial institutions are not prepared to extend any further loan to the State Transport Undertakings because of their higher loan burden.

The State Transport Undertakings have virtually landed in a financial mess with heavy outstanding liabilities towards the supply of fuel, spares and statutory dues. The position as on 31.03.2004 is given below:

Due to financial difficulties, the State Transport Undertakings are unable to replace the over aged buses in time and also to procure spares to keep the operation going.

Over the years, the accumulated losses of State Transport Undertakings have gone up steadily. The accumulated loss upto 31.03.2004 is Rs.2166.39 Crores. The State Transport Undertakings have an accumulated liability of Rs.492.84 Crores as on 31.03.2004 towards Diesel, Spare Parts, Statutory Liabilities and Accident Claims etc. As on 31.03.2004, a loan of Rs.844.82 Crores is outstanding to Financial Corporations. Due to their precarious financial position, most of the State Transport Undertakings are unable to pay interest and principal due. The amount defaulted in the current year upto 31.03.2004 alone is Rs. 273.64 Crores. The interest commitments to State Transport Undertakings have gone up from Rs.77.77 Crores in the year 1995-1996 to Rs.114.60 crores in the year 2003-2004.

4. 0 Replacement and increase in fleet strength

In the Governor's address on 4.2.2004, it was announced that nearly 2500 old buses will be replaced with new buses, in two phases. It was reported by the State Transport Undertakings that 2375 buses had to be replaced immediately. Due to financial position of the State Transport Undertakings, it was proposed to purchase 1050 buses for the year 2003-2004 by availing loan from Tamil Nadu Transport Development Finance Corporation Limited. The programme will be continued as Phase-II till March, 2005 to replace the remaining 1325 buses.

4.1 Purchase of chassis

500 chassis have been purchased for the year 2003-2004. The tender for purchase of 550 chassis is under process. The Metropolitan Transport Corporation Limited has introduced 147 Euro-II buses and this has helped to reduce pollution in the Chennai City. 10 low floor buses have been introduced in the Chennai City for the convenience of physically handicapped and senior citizens and children.

4.2 Bus Body repairs

The Government have released a sum of Rs.30.00 crores (Rupees thirty crores only) for carrying out body repairs and mechanical repairs to the buses of State Transport Undertakings. 5316 buses were identified for major repairs, out of which repairs were completed in 4,032 buses and repairs to 80 buses are under progress. Out of Rs.30.00 crores sanctioned by the Goverment, so far Rs.25.07 crores has been utilised for repair works.

5. 0 Comparison with fare structure prevailing in other States:

The accumulated heavy losses and the increased cost of the inputs in operation led the State Transport Undertakings to a grave financial situation, which necessitated the revision of fare. Hence, the Government with a view that the State Transport Undertakings should run self-sufficiently without any external loans, marginally increased the bus fare, with effect from 6.12.2001 that had remained static since 25.10.1999.

Presently, the fare in Tamil Nadu is the lowest when compared with the fare structure in the adjacent states. The present fare structure for Mofussil services in Tamil Nadu with comparative figures of other important neighbouring States is given below:

(In Paise per K.M.) State Fare Effect- Mofussil Mofussil Mofussil Deluxe Super ive from (Ordy) (LSS) Express Deluxe

Tamil Nadu 6.12.2001 28 - - 32 38 Andhra 4.2.2003 35 - 40 45 52 Kerala 1.10.2001 35 43 46 54 63 Karnataka 1.5.2003 28.5 - 37.25 42.50 50.75 It may be seen from the above table that the fare in Tamil Nadu is still lower than that prevailing in the neighbouring States.

6.0 Road safety and prevention of accidents

The accident compensation commitment has gone up drastically from Rs.16.03 crores in the year 1991- 92 to Rs.114.60 crores (provisional) in the year 2003-2004. Hence, the Government gave importance for accident prevention measures to reduce road accidents involving State Transport Undertaking buses. This Government's focus is on road safety, reduction and avoidance of accidents. As the role of the drivers is very important in avoiding accidents, regular refresher trainings, Yoga classes, safety clinics, brain storming sessions in driver training schools, safety driving award schemes, special increment to the drivers who perform duty without any accident for 10 years etc. are some of the measures introduced by the State Transport Undertakings to ensure safe driving by the drivers of State Transport Undertakings. The Institute of Road Transport selects young and energetic youths who have completed SSLC for an intensive 12 week training on driving heavy transport vehicles. They are also trained in attending to repairs in heavy vehicles, first aid etc. They are given priority for appointment in State Transport Undertakings. The Government have also ordered that a pass in SSLC / 10th Std. instead of 8th Std. as Minimum Educational Qualification for appointment of drivers in State Transport Undertakings. In certain State Transport Undertakings, system of 2 drivers has been introduced for driving the long distance vehicles during night journeys to reduce driver's fatigue.

6.1 Appointment of Women Drivers

During the year 1993, a woman driver was appointed for the first time at Nagercoil. In continuation two more women drivers have been appointed in Metropolitan Transport Corporation Limited, Chennai during the year 2003

7.0 Reduction in accident

In view of the continuous action taken for the safe operation of buses, the accident rate has been restricted.

Details 2001-2002 2002-2003 2003-2004 Total accident (for one lakh 0.37 0.31 0.32 KM operation Fatal accident 1322 1242 1269 No. of persons died 1661 1488 1446

8. 0 Amenities to the travelling public:

In certain important bus stands and bus stops in Chennai City and other important cities, glow sign advertisements have been provided for better security of passengers. To facilitate Inter-transfer service, provision for parking the two wheelers of the commuters at the bus-stands has been made. As the operation of Metropolitan and long distance buses have been shifted to the new Chennai Moffusil Bus Terminus at Koyambedu, the Metropolitan Transport Corporation has introduced many buses in new routes to enable the commuters to reach the Koyambedu Bus Stand. Consequently, the various Metropolitan Transport Corporation buses which were hitherto stopped in and around Madras High Court on the road as a hindrance to the traffic, have been shifted inside the Old Moffusil Bus Terminus and State Express Transport Corporation Bus Terminus. Hence the traffic congestion in this area has been heavily reduced and passengers safety and amenities have been enhanced.

9.0 Travel concessions

This Government have given travel concessions for travel in State Transport Corporation buses to the following category of persons.

1. Members of Parliament, Members of Legislature, Ex-Members of Parliament, Legislature and Council.

2. Students

3. Accredited Journalists

4. Freedom Fighters drawing Central/State Pension and those who participated in Border/Language stir, Widows and Legal-heirs of Freedom Fighters drawing Central Pension/State Pension or Wife/Husband and minor legal-heirs of those who participated in Language stir to protect Tamil Language and those who are receipients of financial assistance from Government.

5. Cancer Patients, Physically handicapped, Deaf, Blind, Mentally Retarded and epileptic patients.

6. Drama Artists

9. 1 Concession to Students

With a view to benefit all students and to give a real meaning to the concept of Education for all from the new academic year starting from 1st June 2004, all students studying from Standard I to Standard XII in all schools including private schools are provided with Free Travel Bus Passes to travel from their residence to school and back to their residence. The free school bus passes will be valid on all days including all holidays. Similarly, the students studying in all colleges including private colleges will be given 50% concessional travel bus passes to travel from their residence to colleges, polytechnics, ITIs and Private Arts colleges and back to their residence with effect from 1st June 2004. These passes will be valid on all days including all holidays. Exchange tokens up-to 60 in number are issued to the College students travelling in MTC buses to travel to the Library and back to their residence.

During the year 2003-2004, 19,14,288 students were benefited. The number of additional students benefitted by the student travel concessions introduced with effect from 1.6.2004 is 5,68,908. Totally 24,83,196 students are benefitted by the student concession scheme. The subsidy to be paid by the Government under this new scheme to the Transport Corporations comes to Rs.291.41 crores. The amount to be collected from the student comes to Rs.17.55 crores and the Transport Corporations are bearing the balance of Rs.176.08 crores. The State Transport Undertakings are bearing the balance cost of the student concession apart from the amount collected from them and subsidy received, as a social responsibility for the welfare of the students

10.0 Concessions to commuters

For the benefit of general passengers, Monthly Season Tickets are issued collecting the LSS fare equivalent to 40 trips from the origin to destination for travel up and down on all days in a month in the Metro and Town services.

10.1 Travel As You Please Tickets (only in MTC) Passengers can travel anywhere in the city by purchasing tickets at the following rates subject to the conditions printed in the ticket.

1) One day ticket : Rs. 30/-

2) Weekly ticket : Rs.160/-

3) Monthly ticket : Rs.600/-

10.2 Creation of Website and on line reservation

A separate Website has been created for each Transport Corporation providing the public all information on the functioning of the State Transport Undertakings. Further, on-line reservation system has been introduced in State Express Transport Corporation for the convenience of long distance passengers.

10.3 Concession for return reservation

When the passengers desirous of travelling by State Express Transport Corporation buses, reserve their tickets both for their onward and return journey at the same time, a discount of 10% on the fare has been allowed.

10.4 Concession for Inter-State reservation

Free travel to Chennai Mofussil Bus Terminus in Metropolitan Transport Corporation buses is permitted for passengers who have reserved tickets in State Express Transport Corporation buses for travelling to Inter-State destinations.

10.5 Buses for Tourist / Pilgrims

For convenience of tourist and pilgrims, STU buses are operated on contract basis and for encouraging these type of passengers hire charges has been reduced from Rs.6500/- to Rs.3500/- per day.

11. 0 Labour Welfare Measures

The State Transport Undertakings are implementing the following welfare measures for the welfare of the workers and their families.

1. Service weightage 2. Free Travel passes to the children of the employee 3. Subsidised canteen facilities 4. Education allowances 5. Allowances with wages 6. Reimbursement of legal fees 7. Uniform 8. Family Benefit Fund 9. Marriage Loan 10. Steering Allowance 11. Voluntary Retirement Scheme 12. Leave benefits 13. Holiday Home 14. Special Health Fund Scheme 15. Medical College, Engineering College and Polytechnics for the children of employees 16. Employees' Post-Retirement Benefit Fund Scheme 17. The Pension schemes for Transport employees 18. Funeral expenses.

12. 0 Phased liberalisation:

The Government announced a policy decision in the year 2002-2003 and has proposed to go in for phased liberalisation of select routes, services and operations in the bus transport sector.

Based on the recommendation of the High Level Committee constituted to work out the modalities for phased liberalisation, the Government decided to modify the Area Scheme in such a way that the permits transferred to the private operators by the State Transport Undertakings are excluded from the Area Scheme of Nationalisation and draft notifications amending the Area Scheme was notified in the Gazette on 12.11.2002. Certain individuals filed Writ Petitions before the High Court challenging the draft notifications. The matter is pending before the High Court. As soon as the verdict of the Court is received, further action will be taken.

12.1 Austerity measures

In order to reduce the cost of operation, various austerity measures have been undertaken by the State Transport Undertakings. a. Recruitment of further staff in all categories has been stopped including replacement for retired employees. b. Creation of new posts has been banned in all categories. c. Promotions have been stopped in Managerial cadre.

12.2 Lok Adalat

In order to reduce the expenditure on accident claim compensation and to settle the claim early, the State Transport Undertakings have been instructed to settle the claims through Lok Adalat and reach mutual settlement of accident claims and thus save huge amount to the State Transport Undertakings. So far, about Rs.3.00 crores was saved during the last one year.

12.3 Achievement in Operation

The State Transport Undertakings are having operative fleet of 15316 buses and 1348 spare buses. State Transport Undertakings have operated 233.24 crores K.Ms with an increase of 3.87 crores K.Ms for the year 2003-04 when compared to the corresponding period of previous year. The overall K.M. efficiency improved from 100.88% (2002-03) to 101.74% (2003-04)

12.4 Revision of Men per Bus Ratio

The norm for overall Men per Bus Ratio has been revised from 7.5 to 6.5

12. 5 Achievement in collection of fare By the special efforts taken by State Transport Undertakings during the year 2003-2004, they have achieved the highest ever collection of Rs.12.73 crores in a single day on 24-05-2004. It was the highest collection from their date of inception. The collection details on 24-05-2004 is given below:

State Transport Undertakings Total Collection (Rs. in lakhs) Metropolitan Transport Corporation (Chennai) Limited, 114.62 Chennai. State Express Transport Corporation (Tamil Nadu) 82.03 Limited, Chennai. Tamil Nadu State Transport Corporation (Villupuram) 275.18 Limited, Villupuram. Tamil Nadu State Transport Corporation (Salem) 125.55 Limited, Salem. Tamil Nadu State Transport Corporation (Coimbatore) 187.45 Limited, Coimbatore. Tamil Nadu State Transport Corporation 226.16 (Kumbakonam) Limited, Kumbakonam. Tamil Nadu State Transport Corporation (Madurai) 262.08 Limited, Madurai. TOTAL 1273.07

12.6 Contribution to Chief Minister's Public Relief Fund

Funds are allotted from Chief Minister's Public Relief Fund for the welfare of the general public. Taking this into consideration and also as a Tax-Planning measure, a sum of Rs.1.00 crore has been contributed by the Tamil Nadu State Transport Corporation (Villupuram) Limited, Villupuram during November 2003 to the Chief Minister's Public Relief Fund.

13. 0 Tamil Nadu Transport Development Finance Corporation Limited

The Tamil Nadu Transport Development Finance Corporation Limited (TDFC) was established in March 1975 in order to cater to the long term financial requirements of State Transport Undertakings for purchase of chassis, body building, the setting up of workshops, and also to meet the working capital requirements by mobilising adequate funds from general public through public deposits. TDFC has been registered as a Non-banking Finance Company with the Reserve Bank of India and classified as a Hire Purchase Company. Authorised share capital of Tamil Nadu Transport Development Finance Corporation is Rs.70.00 crores. The paid up share capital is Rs.61.73 crores, out of which Government have contributed Rs.43.03 crores and the State Transport Undertakings have contributed Rs.18.70 crores. Tamil Nadu Transport Development Finance Corporation has been making profits since its inception. The profit earned in the last 5 years is as follows:

(Rs. in lakhs)

Year Profit before Waiver of Profit after Income Profit after waiver of interest waiver of tax tax interest interest but before tax 1999-2000 2134.58 - 2134.58 900.00 1234.58 2000-2001 1821.38 - 1821.38 800.00 1021.38 2001-2002 3408.40 2223.00 1185.40 490.00 695.40 2002-2003 *2576.62 1781.00 795.62 255.82 539.80 2003- 2756.37 2206.37 550.00 197.31 352.69 2004(Subject to audit)

* As a part of restructuring of existing loans interest rates revised downward from 1.4.02 and levy of interest and penal interest on overdue interest have been dispensed with.

The deposits with Transport Development Finance Corporation Ltd., as on 31.03.2004 is Rs.829.25 Crores. Financial assistance extended by Transport Development Finance Corporation since its inception upto 31.03.2004 is Rs.5124.21 Crores. With the financial assistance extended by Transport Development Finance Corporation, the State Transport Undertakings have so far purchased about 33119 new buses.

14. 0 Pallavan Transport Consultancy Services Limited

Pallavan Transport Consultancy Services Limited was incorporated in April 1984 as a wholly owned company of Government of Tamil Nadu with an authorised capital of Rs.5.00 lakhs and paid up capital of Rs.2.00 lakhs. Subsequently in May 2000, the paid up share capital was increased to Rs.10.00 lakhs with the authorised share capital of Rs.50.00 lakhs. The activities of the company is supervised by seven Board of Directors including Chairman appointed by the Government of Tamil Nadu. The day-to- day affairs of the company are looked after by a full time professional Managing Director.

Pallavan Transport Consultancy Services Limited offers consultancy services in the areas of Software Development, Management, Information Technology and Traffic and Transportation by a core team of qualified and experienced consultants in the respective fields. The core team is supported by the experts. Further they engage personnel from Institute of Road Transport, Highways and retired Government executives with experience and utilise the services of the Professor / Faculty of Anna University in the relevant areas on job to job basis as and when required. Pallavan Transport Consultancy Services Limited is participating in tenders as consortium by associating with reputed consultancy organisation with rich experience in the relevant fields.

Pallavan Transport Consultancy Services Limited has grown since its inception in 1984 despite the competitive nature of consultancy business. Good potential exists in the fields of Information Technology, Infrastructural Development in Road Transport Sector and Management Services. Efforts are being taken to expand business in these areas despite resource constraints.

There is an imperative need to expand the capital base of the company for augmenting the capital resources to enable participation in tenders for securing high value projects.

15. 0 Institute of Road Transport

The Institute of Road Transport is a registered Society under the Indian Societies Registration Act 1860. This institute has entered its Twenty Eighth year in 2003-2004 and continues to expand its services. The Institute undertakes applied research on issues pertaining to Road Transport, do quality monitoring by conducting tests on random samples of spare parts purchased by the State Transport Undertakings in Tamil Nadu, besides engaged in imparting training activities on a large scale.

The Institute of Road and Transport Technology was started in 1984 at Erode under the ageis of IRT. So far, 3523 B.E. Graduates and 159 M.C.A. Post Graduates have completed the course from this Institute. The Perundurai Medical College and Hospital set up, as per the scheme formulated in 1986, is functioning at its own premises at Perundurai, from the academic year 1992-93 under IRT control and has moulded 674 Doctors from inception. Further, in the academic year 1992-93, the Institute of Road Transport has commenced three Polytechnics, one each at Chromepet (Chennai), Bargur and Tirunelveli.

Both in the Polytechnics and in the Engineering College, 50% seats are being filled up by General quota and the balance are being allocated to the wards of Employees of State Transport Undertakings on merit. As far as Perundurai Medical College is concerned, out of 60 seats, 36 seats are allowed to the students in general and the balance 24 seats are being allotted to the wards of employees on merit. Action is being taken to increase the seats to 100. These institutions are being run out of the accrued interest earned on Interest Free Loan contributed by the employees of the State Transport Undertakings and all the capital expenditure incurred for the above colleges are met out from the Special Contributions received from the State Transport Undertakings.

The Institute of Road Transport is also running a Driver Training School at Gummidipoondi and also at 14 Regional Centres in Tamil Nadu imparting training in Driving Heavy Vehicles. Upto 2002-2003, 37515 persons have been trained as Drivers and during 2003-2004, 589 persons have undergone driver training. Further, the Institute of Road Transport has also commenced a Light Vehicle Driver Training Centre at Taramani, Chennai for giving driver training in light motor vehicle and in two wheelers. The Driver Training Centre established at Tiruchirappalli is providing driver training both in light and heavy vehicles from 1997.

The Institute of Road Transport is also acting as a nodal agency to help Tamil Nadu State Transport Undertakings in the purchase of major items like Chassis, Tyres, R.T materials, Piston assembly, Printing of tickets etc. by deciding the price and tender.

16. 0 Motor Vehicles Maintenance Department

Tamil Nadu Motor Vehicles Maintenance Department is a Service Department and undertakes maintenance and repair of all Government Department vehicles. The number of such vehicles for which this Department is responsible for the maintenance and upkeep is about 10,100. There are 20 Government Automobile Workshops in the District Headquarters throughout the State and a Service Station at Chennai inside the Secretariat compound for this purpose. There are three Regional Deputy Directorates, one each at Chennai, Salem and Madurai for the effective supervision and functioning of the works at these Workshops.

This Department is operating two Consumer Bunks at Chennai, one at Nandanam and the other in the Secretariat compound and one each at , Madurai, Salem, Coimbatore, Trichy, Dharmapuri, Cuddalore and Nagercoil for the supply of fuel and other lubricants to the State Government Departmental vehicles in and around those places.

17.0 Nodal Agency to Railways and Postal Departments etc.

The Transport Department is the Nodal Agency in the State Government, co-ordinating with the Railways, Postal, Telecom and Civil Aviation Department of the Government of India on their Projects implemented within the State of Tamil Nadu. The land requirement proposals given by these Government of India organisations are co-ordinated with the District Collector/Commissioner of Land Administration etc., and the lands are acquired and handed over to them for starting their projects.

Apart from the other ongoing projects implemented by Railways in Tamil Nadu, the following projects are implemented on cost sharing basis with State Government on 50:50 basis.

Gauge Conversion Cost

Cuddalore- Virudhachalam : Rs.261.00 Crores

(By Industries Department) Chennai Beach-Tambaram Rs.622.52 Crores. including conversion of 12 Level Crossings by ROB/RUB (By Transport Department)

: NEW LINES: This project is implemented with State Government Mass Rapid Transit System Project sharing 2/3 cost with the Railways sharing the Beach to Velacherry : remaining 1/3 cost (By Housing Dept).

This Government is continuously impressing upon the Government of India on the need to improve the rail network and development activities such as, Gauge Conversion, Extension of Railway Lines and Augmentation of railway facilities etc. in Tamil Nadu. The Railway Ministry has been requested by this Government for the enhanced allotment of funds for the ongoing projects in Tamil Nadu.

The Ministry of Railways have recently taken a policy decision to introduce Computerised Passenger Reservation System in all the District headquarters. They have approached this Government for allotment of land for housing this Passenger Reservation System centre at free of cost, at places which do not have a rail head. This Government have accepted this request and have agreed to provide a building having an area of 600 sq. ft. for housing this Passenger Reservation System centre at Gingee. As soon as the Railway authorities select the place in consultation with the District Collector, the Passenger Reservation System centres will begin functioning at Gingee.

The Southern Railway has decided to link Chennai Central Railway station with Chennai -Egmore by an elevated Broad Gauge line. The cost of the project is Rs. 90.44 Crores. Proposals are under consideration to provide 7300 sq.m. of land free of cost for this project.

During 2004-2005, allocation of funds made by the Railways for the ongoing Railway projects in Tamil Nadu is as follows:-

Serial Particulars Budget allotment Number 2004-2005 (Rs. in crores) NEW LINES 1. Karur- Salem 10.12 GAUGE CONVERSION 2. Cuddalore - Salem 10.00 3. Tiruchirapalli - Nagore - Karaikal 15.90 4. Thanjavur- Villupuram 15.00 5. Quilon - Tirunelveli - Tiruchendur & 31.00 Tenkasi - Virudhunagar. 6. Villupuram - Katpadi 1.00 7. Villupuram - Pondicherry. 11.20 8. Madurai- Rameswaram 35.00 9. Trichy-Manamadurai 15.00 DOUBLING OF LINES 10. Irugur - Coimbatore 7.00 11. Attipattu- Korukkupettai 6.00 12. Pattabiram - Tiruvellore 4th line & 6.00 Tiruvallur - Arakkonam 3rd line 13. Ambathurai- Kodai Road 2.06 14. Chennai Beach- Korukkupet 5.00 15. Madurai - Dindigul 0.10 16. Chennai Beach - Attipattu 4th line 5.00 METROPOLITAN TRANSPORT PROJECT 17. Thirumailai - Velachery (Phase II) 10.00 18. Chennai Beach - Tambaram- 30.00 Chengalpattu GC.

The Southern Railways has taken up the conversion of Metre Gauge Section between Tambaram and Egmore and has closed the Metre Gauge Section with effect from 1.7.2004. The Southern Railways has requested the Metropolitan Transport Corporation (Chennai) Limited to provide adequate additional bus services in the Tambaram Egmore sector and the Metropolitan Transport Corporation (Chennai) Limited is operating additional bus services with effect from 1.7.2004 from Tambaram, Pallavaram and Guindy to Saidapet and to Parrys and between intermediate Railway Stations.

17.1 Amplifying Civil Aviation facility

Due to the continuous efforts of the State Government and increased air traffic, the Airport Authority of India is taking necessary action to expand the runway at Coimbatore Airport and also to install Approach lighting System, which will enable operation of big planes, such as Air Bus and Boeing.

Action is being taken to convert Madurai Airport as an Internatonal Airport and to acquire 45.96 hectares of land for the Coimbatore airport. Due to increased public demand and development of Industrial Sector, the State Government is continuously pressing the Government of India to resume operation of Air services from Salem and Thoothukudy Airports. Further, this Government has also approached the Government of India for establishing a new airport at Thanjavur for the benefit of the tourists.

17.2 Madras Flying Club:

The Tamil Nadu Government is sanctioning Rs. 3.80 lakhs per year for the Madras Flying Club as Fixed Subsidy. Further, a sum of Rs. 3.72 lakhs is sanctioned to the Club as Fuel Subsidy. 18.0 Conclusion

Transport is the track to the future in Tamil Nadu's efforts to be the Numero Uno State in India. The Government believes that a modern, efficient and safe transport system is essential if Tamil Nadu has to achieve its full economic potential and increase its economic prosperity. This department will continue to endeavour to support a better quality of transport on a sustained basis, despite several limitations.

R. VISWANATHAN MINISTER FOR TRANSPORT

DEMAND NO.46

TRANSPORT DEPARTMENT

BUDGET ESTIMATE 2004-2005

(Rupees in thousands)

BUDGET ESTIMATE 2004-2005

(Rupees in thousands) Sl Head of Revenue Capital Total Department No. 1 Secretariat - Non- 126,90,98 -- 126,90,98 Plan -- State Plan 24 24 2 Motor Vehicles Maintenance Department -

Non-Plan 20,42,76 1 20,42,77

State Plan 2,59,41 502 2,64,43 Total 14,99,315 527 14,99,842

R. VISWANATHAN MINISTER FOR TRANSPORT