OSRTC to adopt wet lease model
ROADS & HIGHWAYS

OSRTC to adopt wet lease model

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.

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.

Next Story
Infrastructure Transport

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

Next Story
Infrastructure Urban

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Next Story
Infrastructure Urban

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement