The NTC loses Rs 15 million per month and wants to Rs 112 million new
21 April 2011
The National Transport Company (NTC), which continues to accumulate deficits month after month, asked the government to grant him a new envelope of Rs 112 million, as last year, under the program Additional Income Support. Deficit of 1 July 2009 to 31 December 2010 amounted to Rs 66 million.
Each month the company has cash income of Rs 63 million from the sale of bus tickets. But it must also pay Rs 40 million for salaries and Rs 31 million for diesel, not to mention another sum of Rs 7-8000000 for replacement parts. The minimum every month losses is rotating around Rs 15 million.
This deficit in the "cash flow" heavy said Ashwin Dookun, president of the NTC at a press briefing Wednesday at the headquarters of the company, in the presence of Director General Robin Soonarane. This is the main reason that pushes management to develop a restructuring plan. Before 2009, the deficit was of Rs 55 million.
Ashwin Dookun stressed that the company has the largest fleet of vehicles, or 525. But 70% of its existing routes are not profitable. "It is also noteworthy that the NTC has a social purpose. In 2008, the government had raised prices of bus ticket by 48% but it was only last year that the NTC has increased its rates by 28%.
"In 2008 when I assumed my duties, I made a report of the places and we decided to constantly renew the bus fleet. We had a staff of 3000 employees and we were facing a critical situation. In 2010, for the first time, the government knew that the NTC operates on routes that are unprofitable. To date the number of employees was reduced to 2500," he said.