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
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement