Gujarat Road Transport Corporation Case Write Up
By Group 4

Introduction:

Gujarat is a state in Western India and is the fastest growing economy in the country.
It is also most industrialized state in India.
Gujarat State Road Transport Corporation (GSRTC) was formed on 1st May 1960.
Currently its headed by Mr. Mukesh Puri.
It has nearly 230 bus stops, with three level maintence plants,7 tyre rethreading plants.
It has inducted 8341 fleet of buses in past six years and plans to have nearly 10000 buses by the end of 2015-2016.
It provides employment to up to 50000 and helps create indirect job opportunities to the citizens of Gujarat.

Issues:
• GSRTC`s association with the Government of Gujarat whose policies, rules and regulations which tend to prioritize on compliance rather than performance.
• Prices required Government approval.
• Lowered efficiency and increased costs per bus due to procurement of poor quality spare parts hence led to increased usage of older inefficient buses with high maintenance cost.
• Compliance to adhere with Indian Government rules to reduce greenhouse gas emissions by operating CNG buses. CNG tend to be expensive.
• Permission of private enterprises in the road transport sector cannibalized the sales of GSRTC. Since private players operated only on lucrative routes whereas GSRTC had to also operate in lean routes.
• Contract carriage operators like jeeps, maxi cabs etc who also started operating in profitable routes of GSRTC which led to decline in passengers traveling by bus and hence loss in passenger revenue.
• Passengers prefer price to safety.
• High P-tax payed by GSRTC to GoG. Rs.4.99 Lakhs per bus payed to the government whereas private players pay only 1.84 Lakhs since they under quote the actual no. of days in operation.
• GSRTC payed P-tax,MVT and toll taxes along with all the employee obligations