Chhattisgarh not for transport corporation

Raipur: As part of its commitment to keep out of areas where private initiative can yield better results, the Chhattisgarh government has decided not to set up a state transport corporation.

Employees of the undivided Madhya Pradesh State Transport Corporation, who will come to Chhattisgarh after the division, will instead be offered attractive rehabilitation schemes. This decision was taken at a meeting of a sub-committee of the state cabinet on 17 August 2002.

Chhattisgarh Chief Minister Ajit Jogi says: A public transport consumer deserves quality service at reasonable prices and the state government is committed to ensure this. In the current economic scenario, inter-city public transport can best be managed by the private sector.

Keeping in view the sorry state of the transport corporation and its employees, it would be better not to set up a state transport corporation. This would be good for our overall financial health and the recurring expenditure would also go down. We would only ensure effective regulation of the otherwise completely privatised sector.

This is in line with our decision not to open 30 other public sector units we inherited in the areas that can best be managed by the private sector. In this case, our concern is also to give the best possible deal to about 3,000 employees of the corporation who would be our share. Those seeking voluntary retirement shall get it immediately. Others will be provided with the best possible rehabilitation.

The cabinet sub-committee, chaired by Jogi, discussed four alternatives. These were: formation of a cooperative body instead of the transport corporation; formation of a road transport corporation; formation of a public limited company with private participation; and privatisation of inter-city transport.

Others present in the meeting included Finance Minister Dr R C Singh Deo, Transport and Home Minister Nand Kumar Patel and Revenue Minister Bhupesh Baghel along with additional chief secretary S K Mishra and secretary to the chief minister Sunil Kumar.

Explaining further, Jogi says all the remunerative routes would be given to the best private parties. In case of any non-remunerative routes, the government would directly subsidise the operator.

Also discussed in the meeting was how best to utilise in the public interest the movable and immovable property received by Chhattisgarh after the division of the Madhya Pradesh State Transport Corporation. It was decided that all immovable properties would be put to commercial use after their financial evaluation.

Jogi says whatever Chhattisgarh receives from the division would be spent on the welfare of the state. He instructed additional chief secretary S K Mishra to look into ways of mobilising loans from financial institutions for developing the rehabilitation package. He also instructed the concerned officials to prepare a master plan for the optimum use of all movable and immovable properties.

The sub-committee was constituted by the state cabinet on 15 May 2001 to examine whether or not Chhattisgarh should have a state transport corporation.

Many states countrywide continue to face huge losses from state electricity boards and transport corporations. In Chhattisgarh, the state electricity board is already profitable and now with the decision to opt against state transport corporation, the state is likely to enhance its good financial performance.

Chhattisgarh came into being on 1 November 2000 as the 26^th state of the country. The ninth largest in the country, it is the richest state in mineral resources like coal, iron ore, bauxite and diamonds. With its surplus power, social and industrial peace, and natural resources, the state is poised to become the ideal destination for investors and tourists.