NTC: Loss of Rs 287 Million to Provide

Factors which may cause the deficit are the increase in diesel prices, the increase in wage bill after the payment of the annual salary compensation, the high cost of spare parts and the presence of illegal operators on the routes by the NTC.

Faced with this situation, the directions of the transport company decided to use a rescue plan short and long term. Initially, the company plans to reduce its staff. Sixty employees engaged in the administration, will be called to decide their future soon. An offer of redeployment to other departments of their government will be proposed. If they decline the offer, then they can take premature retirement against payment of compensation.

Several measures to improve the situation

As she faced a difficult financial situation, the National Transport Corporation (NTC) looks at the ways to save money. So, she thought quickly enough to introduce the 'Smart Card', a pre-paid card to reduce the use of money in the bus. This will significantly reduce the flight revenues. In the long term, management intends to convert the NTC into a state company to convert its debt securities. Shares of the company will be sold to employees.

At the direction of the NTC, insists that the year 2013 will be a little difficult for the company for the loss of Rs 60 million are expected due to the rising cost of operations. "Last year, we achieved an excess of Rs 30 million. This year, we will realize a loss of Rs 60 million. Loss of Rs 110 million is expected in 2014 and Rs 117 million in 2015, "said Robin Soonarane, Director General of the NTC, to Le Matinal. The expenses of the company will continue to increase over the next three years.

To date, management does not intend to abdicate its responsibilities in relation to the renewal of its fleet of buses. They are looking for a loan of Rs 500 million to the government for the purchase of 150 new buses. The NTC had started to renew its bus fleet in 2009. To date, 126 buses of the company have more than twelve years.

According to other sources, the NTC is currently working on a program of 'right sizing' to ensure the efficiency of its staff. Currently, it employs approximately 2,200 people in 2010 against 2700. Two entities involved conditions of service of such employees: Pay Research Bureau (PRB) and the National Remuneration Board (NRB). A condition of about 120 employees is in the responsibility of the PRB and the rest of the NRB.

In a report, the PRB recommended that the NTC to reduce the number of employees at a reasonable level. This is at least this indicates the restructuring plan of the company.