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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code