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BMTC Case Study

R. RITU CHOPRA Section ‘C’ 11YACMA117

it was able to make a profit and has continued to do so ever since. the Government of Mysore took it over and renamed it the Bangalore Transportation Service (BTS). The modest pricing and the services made available under it is the central feature of its stupendous success. Consistent profit on traffic revenue started from the year 2003-04. But the very next year. . with a patronage of more than half a million. Ladies Special.Bangalore Metropolitan Transport Corporation Introduction BMTC began with a legacy of loss. resulting in an accumulated net worth of Rs 683.68 crore (US $18 million). Part of the success of BMTC lies in its ability to offer innovative and tailor-made branded services to its customers. it was formed after the bifurcation of Karnataka State Road Transportation Corporation (KSRTC) and gained an equity capital of Rs 64. which extended its service to a 16 km radius around the city. Passes Special. contributing directly to traffic and air quality improvement in the city. Seven additional benefits including automatic travel insurance and medical reimbursements are offered to pass users as a bonus under an umbrella called rainbow benefits. BMTC‟s origin goes back to 1940 when it was created as a private company called Bangalore Transport Company (BTC) with a fleet of just 98 buses serving the city. This initiative was aimed at reducing personalized mode of transport and encouraging public transport. To cater to different economic sections of society it has a variety of rolling stock such as Ordinary. In 1956. BTS was recognized as an independent unit under KSRTC in 1993 and in 1997 got separated from KSRTC and was re-born as BMTC. The introduction of more comfortable and better designed passenger/environment friendly buses has received wholehearted support and encouragement from the public. and an accumulated loss of Rs 72.59 crore (US $16 million). Back in 1997. Hospital Special and Mall Special. Pushpak was the beginning of the initiative and at present BMTC boasts of services like Metro. helped BMTC grow faster than any other city public transport in India and made it profitable too. Grid.31 crore (US $170 million). creating brand loyalty and a sense of belonging among its patrons. BMTC has one of the most successful commuter pass systems. Pushpak and the world-class Vajra (Volvo) services.

BMTC has plans for large scale expansion requiring a capital of Rs 3000 crore (US $7. With a history of efficiency. In order to fulfill its mission . reliable and punctual services to the commuters of city and suburban areas of Bangalore”. a life insurance scheme of Rs 3 lakh (US$ 7500) .the only government sector undertaking to do so in India. The proposed growth includes improved connectivity of routes.BMTC not only strives to serve the citizens of Bangalore by providing affordable. BMTC‟s expansion is fundamental to the city‟s vast mobility needs. BMTC is poised to be an important contributor to Bangalore‟s success as an international city. economic. . a huge increase in the number of buses operating and easier access to information for the commuter. growth and service.“providing efficient. housing. efficient and safe public transport but also takes care of its employees who have powered the corporation‟s unprecedented success story.5 billion) for running 1000 buses in its circuit. BMTC staff are provided with facilities like medical treatment. safe. It encourages gender equality by reserving 33 per cent of its jobs for women. With the opening of the new international airport and a booming economy creating new jobs and more Bangaloreans by the day. loans for the education of their children.

Earlier. .[12]  BMTC was the first in the country to introduce intra-city Volvo buses.Records  BMTC introduces multi-axle Volvo buses for local transport for the first time in the country.5 meter long buses can accommodate 55 percent more passengers compared to normal Volvo buses. It has the youngest fleet of buses in the country due to which the KMPL is also higher compared to other undertakings.   It has the record for making profits consistently for years. These 14. they were well received on the IT sector routes but are now patronized on all routes in the city.

"If the demand on wage hike is fulfilled. government is ready to fulfil all the demands. Hosur Road. NH-4 (Tumkur Road). . We will initiate the process to recruit an equal number of drivers soon after formalities are completed. buses in Chennai and Hyderabad also have adopted this system. K. It traverses an entire circle covering these places to reach Banashankari. Hebbal. BMTC is one of the few undertakings to introduce pneumatic doors in India even in its fleet of ordinary buses to provide safety for passengers. Pura. BANGALORE: The state government has decided to sack over 3. "Participation in strike by trainees is in violation of service rules." R Ashoka. failing gate pass would be given. Currently. He said the government would not be able to meet the wage hike demand given as bus fares have to be increased manifold. the government served show-cause notices to 3.43%. NH-207 (Attibelle to Varthur)." Ashoka maintained. SH-17 (Mysore Road). bus fares will have to be hiked at 14. Drivers and conductors are off the duty since Thursday demanding wage hike. Banashankari Ring Road.000 trainee drivers asking them to report to duty within 24-hours. Even as strike continued on second day on Friday. It will be a burden on the common man at this time of crisis. ITPL. 600 (circular bus route) which starts from Banashankari and covers 117 kilometers (73 mi) round trip to reach Banashankari. R.000 trainee drivers for participating in Karnataka State Road Transport Corporation (KSRTC) and Bangalore Metropolitan Transport Corporation (BMTC) strike resulting crippling of public transport system. deputy chief minister in charge transport department told reporters.  Operates the longest city bus route in India: Route no. covering BTM layout 100 feet road. Barring wage hike. Government is not ready for this.

49 crore a year due to Rs 5 (Rs 6. .He said the additional burden on the state exchequer because of the 10% hike in basic pay of the employees of the four state-run transport corporations. "Government is ready show doors to others following complaints. effective last month was Rs 2. including Karnataka State Road Transport Corporation and Bangalore Metropolitan Transport Corporation. the deputy chief minister said government never anticipated strike as they are given best of the wages and other facilities in south India. "Political parties in power earlier to this government failed to address this issue. Ruling out political hand in the strike." he said. "Drivers and conductors have betrayed people and government. According to the union members.” said HV Ananthasubba Rao. “They have tasted power and do not want to let it go.However.20 crore over the four-year period.287. the transport minister said five each depot managers and DCs have been shunted out in last three weeks. top officials of the BMTC maintain that the claims made by the unions are false and there is no chance of a negotiation at all. convenor of the joint committee. the management has „breached‟ their confidence and broken their promise. The transport department has estimated that it would cost them Rs 325. This government is working on find permanent solution." he said. Replying to a query on allegations of large scale corruption and harassment at depot manager level.13 in Bangalore adding taxes) hike in diesel prices. Ashoka said such a demand was existing since 16 years and was not a new one. The strike was called off at the last minute when the management agreed to the demands of the unions and promised that in future they would be consulted. but we will take it from their unwilling hands. When asked why the government had not signed agreement as per the unions demand. Ashoka indicated that ticket fares would not be raised because of diesel price hike. A similar strike was called for in April by unions to protest against unilateral wage hike and demands for a proper wage revision after discussion with the unions." he said.

they asked for another week‟s time. BMTC. after that deadline. and the percentage is very low. Manjunath Prasad.” Ananth Subba Rao. The KSRTC and BMTC United Employees‟ union. “we end up sleeping in the bus and it‟s mandatory.” He continues saying. we had promised to discuss wage revision with them. We’re not paid for over time. INTUC and Karnataka Rajya Raste Sarige Naukarara Mahamandala announced their members will take part. Inspectors come to see . KSRTC said that this is the highest revision that could be offered. “I start working at 6am every day and finish my trips by 2: 30pm. First they asked for a few days‟ time and we gave them time to study the proposal. MD. However. “We have been working as robots for the corporation‟s benefit. Since wage revision was already delayed and employees were already discouraged.” said a woman conductor. But office work of cash clearance of ticket money goes on till 4pm. A hike happens once in every four years. If a conductor for next trip is absent. said.“During the meetings in April. a conductor from first shift is asked to continue for the second shift which goes on till 10pm. “We are demanding hikes based on experience and service record. president. but what has the authorities done to look at our needs? Our salaries are low. The corporation has hiked the salaries by 10% and 23% for KSRTC and BMTC employees respectively but to no avail. we decided to go for 10% wage revision. Employee Restive: A group of conductors and drivers attending the second shift at the shivajinagar bus station said they all will not come to work on Thursday (13th September). KSRTC Staff and Workers’ Federation. this hike is barely sufficient to take care of basic necessity of a family of 4. Akhanda Karnataka state Road Transport Workers‟ Union. MD. Employees Hitches: We’re left at God’s Mercy (A Day In The Life Of A Conductor) A conductor who‟s with the corporation since fifteen years says.” said KR Srinivas.

000 but takes home only 12. Hosakerehalli. fine charged for reaching late to the depot which means. Reasons:        The first and foremost reason strike happened was.000 the reason being.employer relationship to prevent such problems in future. Performance appraisal system should be introduced in the system. Suggestions:  The corporation should create good employee. there are no restaurants and no toilets either we are at God‟s mercy. . he is either on a night shift or is sleeping in the bus on the outskirts of the city only to start working in general shift from 7 in the morning till 10pm. the BMTC corporation was not generous about hiking the wage of the employees though it is generating good profits. wife and an unmarried sister to take care of. but hardly gets to see them during the month. Compensations/ rewards /benefits should be given to the employees for good performance and negative rewards be given to those with high accident rates.turned-layout.if we are taking care of the bus. or any village. He earns a salary of 16. Most of the time. Second.” Due to this he hardly finds time to spend with his family.     It should look at problems from the employees‟ point of view. his monthly incentives are gone. the union called the strike. Employees disheartened with the management‟s decision Performance not taken into consideration Hard work is not being noticed Over time not paid Therefore. Buses have no facility to even keep our belongings. When we go to distant places like Avalahalli. hard work and overtime should be considered while hiking the salaries. Performance. He has two children. the percentage of the hike is very low. I Hardly Get To See My Family (A Day In The Life Of A Driver) A driver who‟s been with the corporation since 10years claims that the salary given by the management is so insufficient that he runs out of money by the time the first half of the month ends.

Employees should be motivated and a positive attitude should be generated within them so that they do not showcase undesirable behaviour with the commuters.r_qf. Because stress is one of the reasons for undesirable behaviour. Drivers and conductors go through a lot of stress during the working    Times Of India 13th September 2012 Times Of India 14th September 2012 Times Of India 15th September 2012 . Therefore. management should appoint counsellors to distress Sources:  http://www.  The corporation is fairly making good profits therefore the percentage hike in salary should be satisfying.&fp=449d6a268 234a6e5&biw=1311&bih=703  http://www. The corporation shouldn‟t increase the price of tickets when there is hike in petrol price because buses run on diesel not petrol.  The above mentioned were the reasons for the strike and the mentioned suggestions may prevent such happenings in the future if taken seriously.   They should be sent on family trips once in two years.or.  Every BMTC bus should have suggestion box so that the commuters will be able to suggest them on how to improve and share their experience with 13&gs_id=1w&xhr=t&q=accident%20rate%20of%20BMTC&pf=p&sclient=psyab&oq=accident+rate+of+BMTC&gs_l=&pbx=1&bav=on. This will provide them better feedback from the commuters.dnaindia.r_gc.2.