sp_december by HariRaghav


									Vol : 4, No : 12                Editor : R.K.Mishra                  Managing Editor : K.Trivikram                           December, 2008
 AAI granted Min-ratna status                      Ltd (Rs 6 crore) and Kerala State Detergents      Parliamentary Panel asks Refineries
The Government has granted mini-ratna sta-         and Chemicals Ltd (Rs 30 lakh).                       to add more Capacities
tus to the state-owned Airports Authority                                                            The Standing Committee on Petroleum
of India (AAI) fulfilling the criteria laid down     Salaried class choose PSBs
                                                                                                     and Natural Gas has asked the public sec-
for grant of mini-ratna status relating to         More than 60% of the salaried class is
                                                                                                     tor oil refiners to add more capacities to their
continuous profit for last three years and         choosing to invest in government-owned fi-
                                                                                                     existing refineries since such additional ca-
positive networth. The authority will, how-        nancial institutions in the context of the glo-
                                                                                                     pacities would give more and more opportu-
ever, have to wait till the board is restruc-      bal economic slump, according to a recent
                                                                                                     nity to companies to increase their export
tured and three independent directors ap-          study by The Associated Chambers of Com-
                                                                                                     quantum and improve their bottomlines, the
pointed before the enhanced power to incur         merce and Industry of India (Assocham).
                                                                                                     committee would like the public sector oil
additional capital expenditure that go with        People feel such institutions are more cred-
                                                                                                     companies to go in for further expansions in
the grant of min-ratna status are made avail-      ible and secure while 20% still prefer private
                                                                                                     their existing refineries and also set up new
able. Currently the AAI board can approve          banks and the remaining 20 % ontinue to
                                                                                                     ones at strategic locations, having export
projects worth only Rs 150 crore, which are        show their apathy to either of the two, the
                                                                                                     advantages. In its report on oil refineries,
likely to go up to Rs 500 crore after the in-      Assocham study report said. The findings
                                                                                                     presented to Parliament by the committed
dependent directors are in place. Currently,       are contained in the study, ‘Growth and
                                                                                                     headed by Mr N. Janardhana Reddy, it noted
AAI has to approach the government seek-           Emergence of Public and Private Sector
                                                                                                     that while the public sector refineries have
ing nod for an expenditure over Rs 150 crore.      banks in India: customer’s and investor’s
                                                                                                     decided to go in for lower capacity addition
                                                   perceptions,’ in which over 250 employees,
                                                                                                     in percentage terms, the private sector play-
 Kerala       outlines steps               to      businessmen and lawyers have been inter-
                                                                                                     ers have taken a gigantic stride in this di-
            revive    SLPEs                        viewed. It reveals that 50% of salaried em-
                                                                                                     rection. “The committee is at a loss to un-
The Kerala government has initiated a num-         ployees in all segments prefer private sec-
                                                                                                     derstand the lower capacity addition by the
ber of measures to put the loss-making State       tor for mutual funds while only 20% opt for
                                                                                                     public sector refineries,” the report said. The
Level Public Enterprises (SLPEs) on healthy        public sector banks for the same. Twenty
                                                                                                     present refining capacity of public sector
track, according to the Minister for Indus-        per cent are indifferent to either of the two
                                                                                                     companies is 105.47 million tonne per an-
tries, Mr Elamaram Kareem. Answering               sectors for parking their funds in mutual
                                                                                                     num (mtpa) and that of private sector is
questions in the Assembly the Minister said        funds while 10% do not avail themselves of
                                                                                                     43.50 mtpa. The planned capacity addition
that the measures included one-time settle-        this service. Forty per cent of employees
                                                                                                     according to the Eleventh Five-Year Plan is
ment of the bank liabilities of the units, stra-   prefer public sector banks for purposes of
                                                                                                     53.49 mtpa in the public sector and 38.50
tegic tie-ups with Central PSUs and                investment in bonds and securities as com-
                                                                                                     mtpa in the private sector.
modernisation and technological                    pared to 30% who prefer private banks. The
upgradation. As part of strengthening the          banking services provided by public sector         Chief secy to Head Panel on
                                                   banks are preferred by 60% of the salaried
management set up, the chief executives
                                                   employees, while only 20% go in for private
                                                                                                              Power Rates
are being appointed through transparent pro-                                                         Chief secretary Mr. Ramesh Inder Singh
cedures. The Restructuring and Internal            banks for security purposes and remaining
                                                   20% are indifferent to both. This preference      will head the committee set up by Punjab
Audit Board (RIAB) is undertaking the re-                                                            government to negotiate power rate with a
view of the operations of the SLPEs on a           for public sector banks (PSBs) for invest-
                                                   ment is mainly due to the fact that, as a         private company selected to set up a ther-
monthly basis. RIAB is also facilitating the                                                         mal plant at Rajpura near Patiala. Other
training of workers to enhance their effi-         general perception, the employees find these
                                                   reliable and secure, the study noted. For         members of the committee will be the sec-
ciency. The Minister said that the Govern-                                                           retary (power), the secretary (finance), the
ment had taken steps to settle the bank li-        credit cards, 60% of the businessmen pre-
                                                   fer PSBs while for debit cards 40 per cent        secretary (PSEB) and member (generation)
abilities of seven SLPEs on a one-time pay-                                                          of the PSEB. The committee has been
ment basis. These included Kerala State            prefer private banks, 20% prefer PSBs. For
                                                   ATMs 60% of the businessmen prefer pri-           asked by the Chief Minister Mr. Prakash
Electronics Development Corporation (Rs                                                              Singh Badal to negotiate power rates with
57.85 crore), Autokast Ltd (Rs 12.52 crore),       vate banks. All the businessmen opted for
                                                   private banks when it came to phone and           the company. The company which was
Steel Complex Ltd (Rs 8.50 crore), pre-                                                              single bidder for a thermal plant had quoted
nationalisation dues of Kerala State Textiles      internet banking. They said the services
                                                   were professional, quick, and the banks had       the power aids in the range of Rs 3.30 per
Corporation (Rs 3 crore), Sitaram Textiles                                                           unit, it is learnt. However, these rates are
Ltd (Rs 1.85 crore), Steel Industrials Kerala      proper infrastructure, the study said.
                                                                                                     not acceptable to Punjab government which
                                          Spotlight : Central & State Public Enterprises : 4 (12)                           December, 2008

feels these are on the higher side compared      crete proposal for unbundling the board for     valid only for new loans up to June 30, 2009.
to the power aids in other states. Punjab        getting extension. The chairman said the        The package also includes lower margins
government wanted the power aid should be        Centre is yet to respond to the proposal to     (borrowers’ contribution), waiving of process-
below Rs 3 per unit. The government wanted       the state government. As per the Electricity    ing and pre-payment charges and free life
to make the state self-sufficient in power.      Act, 2003, the Union Government had di-         insurance cover for borrowers. Under the
                                                 rected all states to unbundle their power       scheme, the interest rate on home loans up
  Indian Oil Corporation first                   boards into transmission, distribution and      to Rs 5 lakh, for a maximum period of 20
         LPG Pipeline                            generation companies. The idea behind the       years, will not exceed 8.5% for the first five
Indian Oil Corporation Ltd. (IOC) has            move was to allow free trade of power keep-     years. The margin for this segment has been
completed the commissioning of its first         ing in view the entry of private power pro-     reduced to 10% , from the current 20-25 per
cross-country liquefied petroleum gas (LPG)      ducers in the country.                          cent. This means a borrower can get loans
pipeline in North India, between Panipat and                                                     up to 90 per cent of the value of the house.
Jalandhar. The pipeline was completed at a        Govt issues Oil Bonds worth                    The interest rate on loans up to Rs 20 lakh
total cost of Rs. 158 crore as against an                 Rs 22,000 cr                           for a maximum period of 20 years has been
approved cost of Rs. 186.72. According to        The government issued bonds worth Rs            fixed at 9.25 per cent and the margin has
IOC, the overall savings in the distribution     22,000 crore to oil marketing companies to      been reduced to 15 per cent. During the first
cost of LPG due to the pipeline are esti-        compensate them for their under-recoveries      five years, if any bank introduces a home
mated to be annually about Rs 35 crore.          on sale of petroleum products in the domes-     loan product at a lower rate, then the bor-
The other intangible savings would be in the     tic market. The 16-year bonds carry 6.35%       rowers will be offered that rate.
form of reliability, lower transit losses and    coupon rates according to an official state-
safety in road transportation, he said. With     ment said.. Indian Oil Corporation will get         Nuclear Power Corpn
this commissioning, IOC has joined the se-       bonds worth Rs 11,975.51 crore, Bharat          identifies 4-5 sites to set up
lect group of companies which own and op-        Petroleum Corporation will receive bonds                1,000 MW units
erate LPG pipelines. The total length of the     worth Rs 5,330.76 crore and Hindustan           Nuclear Power Corporation of India Ltd
pipeline network, including crude oil and        Petroleum Corporation will be issued            (NPC) plans to set up clusters of nuclear
product pipelines, has now gone up to about      bonds worth Rs 4,693.73 crore. The invest-      power plants in identified ‘Nuclear Parks’ in
9,600 km. IOC plans to add about 4,000 km        ment in these bonds will not be counted         the country. At least 4-5 such sites that in-
of new pipelines by the end of the Eleventh      against the mandatory requirement for banks     clude Koodankulam in Tamil Nadu and
Plan period (2007-12).                           and insurance companies to keep part of         Ratnagiri in Maharashtra have been identi-
                                                 their deposits in government approved se-       fied to set up 1,000 MW units, according to
  Govt to refer Insurance bill                   curities                                        Mr S.K. Jain, Chairman and Managing Di-
    to Standing Committee                                                                        rector of NPC. The potential sites would be
The Insurance Reforms Bill that seeks to             ONGC, IOC join hands for                    along the coastal areas and the power pro-
raise foreign investment limit in private sec-        Exploration, Marketing                     duced from these nuclear plants should be
tor insurance companies to 49% will be scru-     ONGC and Indian Oil Corporation Ltd             competitive to thermal power in the region.
tinised by Parliamentary Standing Commit-        (IOC) have joined hands for mutual co-op-       About 10 large reactors of the Light Water
tee. The bill will now go to the Standing Com-   eration in the fields of oil and gas explora-   Reactor (LWR) are also planned with par-
mittee on Finance, Minister of State for Par-    tion, production, and marketing. ONGC said      ticipation of global players. While the sourc-
liamentary Affairs Pawan Kumar Bansal            that the two entities have inked a Memoran-     ing for the reactor would be from global ven-
said. The Insurance Laws (Amendment) Bill,       dum of Understanding (MoU which envisaged       dors, efforts are on to ensure that
which was introduced in the Rajya Sabha          ONGC supporting IOC in exploration under        indigenisation in the future nuclear power
on December 22 amid stiff resistance seeks       the New Exploration Licensing Policy            plants would be up to 80 per cent, so that
to raise the foreign direct investment (FDI)     (NELP), while IOC will extend support to        Indian industry has a major role, the NPC
cap in the private insurance companies from      ONGC for marketing its aviation turbine fuel.   chief said.
26% at present to 49 per cent. It took over      The two companies will jointly forge strate-
four years for the government to pursue the      gies for marketing of natural gas produced           Joint Venture for Power
proposal of raising the FDI limit in private     by ONGC. The MoU also incorporates IOC               Exchange incorporated
insurance firms. The intention to raise cap      supplying diesel to ONGC for meeting latter’s   NTPC Ltd, NHPC Ltd, Power Finance
was announced by the then Finance Minis-         operational requirements. The umbrella un-      Corporation and Tata Consultancy Ser-
ter P Chidambaram in 2004 Budget.                derstanding, which also includes finalisation   vices have incorporated their joint venture
                                                 of the long-pending crude oil supply agree-     company to operate a nationwide power
    State seeks Extension                        ment.                                           exchange.NTPC and NHPC will own 16.67%
  Unbundling of Power Board                                                                      each in the newly-formed company, National
The Himachal government has requested the        Public Sector Banks cut Rates                   Power Exchange Ltd, while Power Finance
Centre to extend the time limit for trifurca-         on New Home Loans                          will own 16.66% and TCS will have a 50%
tion of the Himachal Pradesh State Elec-         Public sector banks have brought cheer to       stake according to NTPC.Earlier this year,
tricity Board (HPSEB). Chairman of the           small home loan seekers by cutting rates        the four companies had entered into a joint
HPSEB Mr. R.K Jain admitted that they pre-       under a new package aimed at stimulating        venture to set up and operate a national-
sented their case for extension to the state     demand in the retail housing sector. Loans      level power exchange. The exchange would
power board with the state government. The       up to Rs 20 lakh is available at 8.5-9.25% a    also ensure clearing of all trades in an effi-
state government had to put forward a con-       year for tenures up to 20 years. The offer is   cient manner, with access to all the players
                                                                                                 in the power market.
                                             Spotlight : Central & State Public Enterprises : 4 (12)                          December, 2008

Scope exists for Pvt Participation                    Abellon and German company Enarcon.            the seeds of the revival of the board were
                                                                                                     sown this year with two units of 250 MW
within present Atomic Energy Act                      Faced with choppy market conditions
                                                                                                     each of Lehra Mohabbat Stage II being
Indian private sector companies need not              and uncertainty over the current scenario
                                                                                                     commissioned and the 3x660 MW
wait for an amendment of the Atomic En-               in the international crude oil markets, Oil
                                                                                                     Gidderbaha project being awarded to a
ergy Act to participate in the development            India Ltd has deferred its initial public
                                                                                                     private player, besides the process to
of nuclear power in India. They can well do           offering (IPO) to the next fiscal.
                                                                                                     awarding the 1320-MW Rajpura and
that within the framework of the existing Act
                                                      Gas Authority of India Limited (GAIL),         4x660-MW Gidderbaha thermal plants
— by joining hands with the public sector
                                                      Chandigarh, donated a sum of Rs 9 lakh         still in process, these efforts will not have
Nuclear Power Corporation of India (NPCIL),
                                                      to the Government Medical College and          any effect on the board’s performance in
according to Dr Anil Kakodkar, Chairman,
                                                      Hospital, Sector 32, for the treatment of      2009. The financial position of the board
Atomic Energy Commission. He observed
                                                      poor patients here today. “No other com-       is so precarious that there are fears that
that since it would not be possible to
                                                      pany has so far provided such an amount        employees may not get their salary in
handover running of nuclear power plants to
                                                      as donation for the treatment of poor          time. The board’s commercial losses are
a company that does not have experience
                                                      patients. Corporates must provide finan-       likely to cross the Rs 2,000-crore barrier
in operating a nuclear plant in India, Indian
                                                      cial assistance for such projects,” said       this year and accumulated losses are
companies that are interested should first
                                                      Prof Dr Raj Bhadur, Director-Principal,        likely to be around Rs 9,000 crore. The
work with NPCIL and gain expertise.
                                                      GMCH-32. The cheque was handed over            subsidy burden on account of free power
UCO Bank reduces equity capital                       by GAIL officials to the institute’s Dr Raj    to farmers and other consumers has in-
                                                      Bhadur at a                                    creased from Rs 873 crore in 2004-05 to
Kolkata-based UCO Bank has restructured
its equity capital by reducing it by almost           Air India (AI) is currently in the process     over Rs 2,800 crore in 2007-08. The state
one-third from the current level of around Rs.                                                       government has failed to pay Rs 1,320
                                                      of integrating into the Star Alliance and
800 crore . to Rs. 549.36 crore. After the            the process is expected to be completed        crore to the PSEB in cash during 2007-
restructuring, the government holding in the                                                         08
                                                      by May-June 2009 according to Air India
bank has come down to 63.59 % from                    executive director Mr. Jitender Bhargava       This is a year best forgotten for the
74.98%.                                               said AI was invited to join the alliance in    Navaratna trio of Indian Oil Corporation
                                                      December 2007 and as per normal pro-           (IOC), Hindustan Petroleum Corporation
Govt announces Fertiliser Bonds                       cedure, it would be completed by May-          (HPCL) and Bharat Petroleum Corpora-
The government issued ‘6.20% fertiliser com-          June 2009. Prior to its entry into the Star    tion (BPCL). While December 31 would
panies’ Government of India special bonds,            alliance, AI will have to comply with the      have the New Year revellers scream from
2022’ for Rs. 4,000 crore at par to 16 fertiliser     minimum joining requirements (MJRs)            the rooftops, it marks the end of another
companies as compensation towards                     stipulated by the Star Alliance. To            sombre quarterly period for these com-
fertiliser subsidy during the current financial       achieve compliance with these, AI will         panies. It means another round of com-
year. The investment in the special bonds             have to raise standards of its product and     bined losses estimated at Rs 12,000
by the banks and insurance companies will             service to levels comparable with those        crore, which would bring the total for the
not be reckoned as an eligible investment             of other Star carriers. AI will benefit from   three quarters to over Rs 25,000 crore
in government securities for their statutory          its participation in the Star Alliance by      for IOC, HPCL and BPCL. The silver lin-
requirements, the RBI said in a release.              way of network expansion and increased         ing in the cloud is that the next three
However, such investments by the insurance            traffic feed through commercial coopera-       months, which will bring the curtains
companies will be eligible to be reckoned             tion arrangements like code sharing,           down on 2008-09, could see marginal
as investment under ‘other approved securi-           network connectivity, schedule coordina-       profits but this will not be enough to off-
ties’ category as defined under the Insur-            tion, special prorate agreements.              set the losses accumulated thus far (it
ance Regulatory and Development Author-                                                              would be for the first time, since they
ity (Investment) Regulations, 2000. Further,          Air India has reported a loss of Rs 2,226
                                                      crore for 2007-08. The latest losses are       were nationalised, that these oil compa-
the investment by the provident funds, gra-                                                          nies would be reporting losses for an
tuity funds and superannuation funds in the           almost three fold more than the com-
                                                      bined loss of Rs 722 crore that Air India      entire fiscal).
special bonds will be treated as an eligible
investment under the administrative order of          and Indian reported during the previous
                                                      year. The rising cost of aviation turbine
the Ministry of Finance. The special bonds
will be transferable and eligible for market          fuel and increase in the wage bill for its
                                                      employees are being cited as the main          Andhra Pradesh Generation Corpo-
ready forward transactions.
                                                      reason for the airline reporting these         ration Ltd (AP Genco) is planning to
                                                      losses. The accounts were presented to         plough back its profits into business as
                                                      the airline board at its meeting in            ‘owner’s equity’ in view of the massive
                                                      Mumbai.                                        capacity expansion programme they have
   Ten companies including windpower major                                                           undertaken. The AP Genco board of di-
   Suzlon have bid for Gujarat State Pe-              The Punjab State Electricity Board
                                                                                                     rectors has, therefore, decided against
   troleum Corporation’s (GSPC) pro-                  (PSEB) enters 2009 in deep financial
                                                                                                     any dividend payout to its shareholders
   posed 200 mw windpower project in the              crisis and an uncertain future with no
                                                                                                     for 2007-2008.The corporation has an
   State. Companies in the bidders list in-           money to undertake the much-delayed
                                                                                                     installed capacity of 7,044.66 mw, includ-
   clude Suzlon, Danish company Vestas,               restructuring exercise or assure regular
                                                                                                     ing thermal 3,382.5 MW, hydel (3,659.76
   French companies Theolia, Globalwind,              power supply to its consumers. Although
                                                                                                     mw) and wind (2 mw).AP Genco regis-
                                       Spotlight : Central & State Public Enterprises : 4 (12)                             December, 2008

tered sales income of Rs 5,195 crore and
net income of Rs 197.64 crore for 2007-                          MOVERS & LEADERS – A LIMELIGHT
2008 against total income of Rs 4,324.74        Mr. V.S. Sampath, I.A.S,
crore and net profit of Rs 151 crore for        Secretary,                                        Mr. Vivek Sahai,
the previous fiscal.In a statement to the       Ministry of Power,                                General Manager,
company’s shareholders, AP Genco has            New Delhi.                                        Northern Railway.
said that during 2007-2008, the company
generated 33,323 million units from all         Mr. V.V. Bhat, I.A.S,                             Mr. M.S. Jayanth,
sources with thermal, hydel and wind            Principal Secretary (Finance & Planning)          General Manager,
contributing to about 50% of energy of          &Chairman & Managing Director                     Integral Coach Factory,
the AP Grid. The AP Genco’s coal-               (Addl. Charge),                                   Chennai.
based thermal plants achieved a plant           Delhi Finance Corporation,
load factor (PLF) of 85.68% against PLF         New Delhi.                                        Mr. I.J. Kapoor,
of 84.95 per cent last fiscal.                                                                    Director (Commercial),
The Indian Railway Finance Corpo-               Ms. Nita Bali, I.A.S,                             National Thermal Power Corporation Ltd.
ration (IRFC) has raised about Rs 2,700         Chairman & Managing Director,
crore till date this fiscal at a weighted       Delhi State Civil Supply Corporation,             Mr. Ashwani Jain,
average cost of 9 % and an average tenor        New Delhi.                                        General Manager (In-charge),
of 10.22 years. In 2007-08, IRFC had                                                              Northern Region Transmission
raised Rs 4,609 crore at 9.3% As on             Mr. Jaspal Singh, I.A.S,                          Power Grid,
March 2008, IRFC had financed 54% of            Secretary,                                        Jammu.
3,447 electric locos of Indian Railways,        Home Affairs and Justice.
43% of 5,210 diesel locos, 66.43 per cent                                                         Mr. Pradeep Ramnath,
of 41,623 coaches, and 51.55 % of               Mr. Ashok Kumar Gupta, I.A.S,                     Executive Director,
2,40,562 wagons of Indian Railways. The         Secretary,                                        Central Bank of India.
financing arm of railways is looking to         Agriculture.
raise $400 million more from the exter-                                                           Mr. Bharat Lal Meena, I.A.S,
nal market this fiscal when the market          Mr. K. Chandramouli, I.A.S,                       Commissioner in-charge,
conditions are conducive, having recently       Commissioner,                                     Bruhat Bangalore Mahanagara Palike.
raised $100 million.                            Central Provident Fund &
                                                Employees Provident Fund Organisation.
The Himachal Pradesh State Civil
Supplies Corporation Ltd has regis-             Mr. Gurdev Singh, I.A.S,
tered a net profit of Rs 128.12 lakh dur-       Director,
ing the current year. Presiding over a re-      Rural Development and Panchayats
view meeting of the Board of Directors of       and ex-officio Secretary &
the Food, Civil Supplies and Consumer           Joint Development Commissioner, I.R.D
Affairs Minister, Mr. Ramesh Dhawala            (Addl. Charge)
said that a turnover of Rs 908.86 crore
had been achieved. He added that there
had been an increase of Rs 259.34 crore
over last year. Mr. Dhawala said out of
this profit a sum of Rs 21 lakh had been                         ( Appointments in the month of December 2008)

                                                            PRINTED MATTER

    From :
    Dr. K.Trivikram,
    Sr. Faculty Member,
    Institute of Public Enterprise,
    O. U. Campus, Hyderabad - 500 007.
    Tel : 27095480 , Fax : 27095478
    E-mail : trivikram.ipe@gmail.com

  Printed, Published & Edited by Dr. K.Trivikram & Prof. R.K. Mishra for Institute of Public Enterprise, O.U. Campus, Hyderabad - 500 007
                                                      (Annual Subscription Rs.100/-)
contributed towards the chief minister’s      award, instituted by the IEI to honour
relief fund. He said the corporation had      eminent engineers in their fields of
achieved a sale turnover of Rs Rs 524.82      specialisations, commended Mr.
crore up to November 2008, registering        Ananthakrishnan for ‘spearheading the
an increase of Rs 57.65 crore. The min-       capacity expansion programme’ at
ister also approved the directors’ report     Bharat Heavy Electricals Limited, Tiruchi,
balance sheet and profit and loss account     and for his ‘significant contributions in
for the current financial year. He appre-     the fields of Industrial Engineering, Op-
ciated the role of the BoD and the em-        eration Planning and Control, Production
ployees of the corporation in ensuring a      and Materials.’
consistent profit and timely availability
                                              Allahabad Bank Ltd reported a 28%
of essential commodities to the consum-
                                              jump in operating profit at Rs 666.06
                                              crore for the quarter ended December 31,
The Andhra Pradesh State Road Trans-          2008 from Rs 521.12 crore a year ago.
port Corporation (A.P.S.R.T.C) has con-       Net profit remained flat at Rs 369.47 crore
tinued its profit making for the third con-   for the quarter compared with Rs 365.05
secutive year by registering a surplus of     crore in the corresponding period last year
Rs.118 crore for the third quarter of 2008-   according to Mr. K.R. Kamath, chairman
09 fiscal year., APSRTC Vice-Chairman         and managing director of Allahabad
and Managing Director Mr. V. Dinesh           Bank. The bank allocated Rs 193.61
Reddy said the profits could touch            crore for income taxes in the quarter
Rs.120 crore by the end of the current        compared with Rs 31.06 crore a year ago.
fiscal. In spite of Rs.300 crore additional   Total provisioning stood at Rs 296.59
annual burden due to hike in diesel price,    crore against Rs 156.07 crore in the pre-
RTC could still earn profits without in-      vious year. Net profit for the nine months
creasing the fare, he said. Mr.Reddy          (April to December) of the current finan-
however said notwithstanding Rs.300           cial year declined 37.35 per cent to Rs
crore profit of last three years, RTC’s       504.51 crore from Rs 805.23 crore a year
accumulated losses stood at Rs.1,200          ago despite 15.99 per cent growth in
crore thus ruling out downward revision       operating profit.
of fare. The financial turnaround became
possible because of substantial improve-
ment in efficiency parameters with oc-
cupancy ratio touching a record 73% with
1.4 crore passengers travelling per day
by RTC. By giving its vacant sites for
commercial exploitation through BOT
mode, RTC saw significant increase in
its non-traffic revenue from Rs.99 crore
to Rs.235 crore. ‘Palle Velugu’ buses for
rural bus passengers were another
money spinner. ‘Meghamala’ AC buses
for short distance travel would be plied
from Jan.26 from Visakhapatnam to
Vizianagaram, Vijayawada to Guntur and
‘Saptagiri’ super luxury buses from Feb-
ruary 1 from Tirumala to Bangalore and
Mr. V. Ananthakrishnan, Executive Di-
rector, Bharat Heavy Electricals Limited
(BHEL), Tiruchi, has received the Emi-
nent Mechanical Engineer Award for the
year 2008 from the Institution of Engi-
neers India (IEI). Mr. T. M. Gunaraja, a
Fellow and the Chairman of Mechanical
Engineering Division, Board of IEI, pre-
sented the award and S. Dharmalingam,
Additional General Manager, Bharat
Heavy Electricals Limited presented the
citation to Mr. Ananthakrishnan. The

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