OSRTC’s financial losses mount to Rs 45.46 crore in two years: Odisha Minister

The Odisha State Road Transport Corporation (OSRTC) is contending with severe financial strain, as revealed by the state Commerce and Transport Minister, Bibhuti Bhushan Jena, in a legislative assembly session on Thursday.

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According to Minister Jena, the corporation has been operating at a loss over the last two financial years, with losses totalling Rs 45.46 crore. Specifically, the financial year 2022-23 saw a loss of Rs 18.83 crore, while the subsequent year 2023-24 witnessed an increase in the loss to Rs 26.62 crore.

Despite a rise in revenue from Rs 145 crore in 2022-23 to Rs 156.43 crore in 2023-24, expenditures have also surged, reaching from Rs 164.12 crore in 2022-23 to Rs 183.06 crore in 2023-24. The Minister emphasised the mismatch between rising revenues and mounting expenses, resulting in an ongoing deficit.

In addition, Minister Jena informed the Assembly that mechanical failures have rendered 109 buses inoperable. Of the 540 buses acquired by the State government over the past decade, these remain out of service. He clarified in his written reply that no Departmental officials are to be blamed for this situation.

Primary reasons for OSRTC's losses

Several factors contribute to OSRTC's losses, including rising operational costs due to increasing fuel prices and employee benefits, as highlighted in the Comptroller and Auditor General of India's 2022 report. Additionally, the COVID-19 pandemic significantly impacted OSRTC's revenue.

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Long-term implications of OSRTC's financial struggles

Continued losses could hinder OSRTC's ability to invest in modernising its fleet, expanding services, and improving infrastructure. This could also impact the State’s overall economic development and accessibility to the ssential services, particularly for those reliant on public transport.