OSRTC to adopt wet lease model

30 Jan 2023 CW Team

Although the OSRTC was advised by the Assembly standing committee to purchase new buses to grow its fleet size to 1,000, the organisation is intending to follow a different approach as it is experiencing operational loss each year. It was resolved at a recent high-level meeting to look into the method used by Capital Region Urban Transport (CRUT), which operates the Mo Bus service in Puri and Rourkela.

Usha Padhee, the principal secretary of commerce and transportation, advised using a wet lease technique to expand the fleet size with the help of private bus owners without burdening the company financially with the cost of bus purchases, maintenance, manpower, and fuel.

Under the wet model, the private partner will be responsible for paying staff salaries, maintenance fees, and fuel costs. Private partners could be able to cut down on operating losses and have a superior management structure. We are looking at many models. A decision in this regard will be made soon, according to a representative of the Transport department. If the concept is adopted, a deal will be arranged with private partners to pay a premium in order to cover losses on nonprofitable routes and guarantee that no bus is left idle, he said.

In order to prevent bus idleness and minimise loss, the principal secretary has also requested that the Transport Commission take quick action to issue a permit in favour of OSRTC on routes that have not been rationalised and in cases of night service. The firm has been requesting a state-wide authorization as well as a tax exemption. Additionally, it was agreed that drivers will be trained at the Chhatia area's current training facility rather than constructing a new institution, which would incur significant costs.

In order to expand the number of buses in its fleet and add government buses to certain new routes, the Odisha State Road Transport Corporation (OSRTC) is thinking of using a wet lease approach. The OSRTC operates 636 buses, of which 478 run on 317 routes while the remaining 77 are being repaired. 53 other buses have already been designated as being condemned. About 5% of all buses operating in the state, both public and private, are represented by the bus strength. Although the OSRTC was advised by the Assembly standing committee to purchase new buses to grow its fleet size to 1,000, the organisation is intending to follow a different approach as it is experiencing operational loss each year. It was resolved at a recent high-level meeting to look into the method used by Capital Region Urban Transport (CRUT), which operates the Mo Bus service in Puri and Rourkela. Usha Padhee, the principal secretary of commerce and transportation, advised using a wet lease technique to expand the fleet size with the help of private bus owners without burdening the company financially with the cost of bus purchases, maintenance, manpower, and fuel. Under the wet model, the private partner will be responsible for paying staff salaries, maintenance fees, and fuel costs. Private partners could be able to cut down on operating losses and have a superior management structure. We are looking at many models. A decision in this regard will be made soon, according to a representative of the Transport department. If the concept is adopted, a deal will be arranged with private partners to pay a premium in order to cover losses on nonprofitable routes and guarantee that no bus is left idle, he said. In order to prevent bus idleness and minimise loss, the principal secretary has also requested that the Transport Commission take quick action to issue a permit in favour of OSRTC on routes that have not been rationalised and in cases of night service. The firm has been requesting a state-wide authorization as well as a tax exemption. Additionally, it was agreed that drivers will be trained at the Chhatia area's current training facility rather than constructing a new institution, which would incur significant costs.

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