Performance Evaluation Of Karnataka‘S State Road Transport Corporations;

Abstract

Transport is an important infrastructure in the economy of a country. The commerce in the economy rests on the well-laid foundation of transportation. In India, bus transport services were prevalent from the 1920s. The Road Transport Corporation Act was passed by Parliament in 1950, in a move to nationalize passenger road transport undertakings operating in various Indian states. Thus the state road transport corporations (SRTCs) were formed. Karnataka State Road Transport Corporation (KSRTC) pioneered the move of splitting into smaller corporations that would improve physical productivity and financial performance. Thus the genesis of Bangalore Metropolitan Transport Corporation (BMTC), North Western Karnataka Road Transport Corporation (NWKRTC) and North Eastern Karnataka Road Transport Corporation (NEKRTC) took place. All the four corporations have been analyzed with respect to their profitability and capital efficiency, from which it is learnt that not all the corporations are doing well continuously throughout the years. The research aims at conducting a comparative assessment of the four transport corporations to gauge their efficiencies. The data envelopment analysis is adopted to calculate efficiency levels within the corporations on a scale of 0 to 100 percent, with the help of a set of input and output variables.