Against all odds, BMTC reaps a profit of ₹33.97 crore

 

Bangalore Metropolitan Transport Corporation (BMTC)  Chairman Nabhi Raj Jain, addressing a press meet Bengaluru's Shantinagar Central office, shared some good news - the Transport Department was making a profit after all.

 

“The department had taken a loan of ₹390 crore from leading commercial banks at 10% interest and from Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) at 6.5% interest.  The bank liabilities have been cleared, and the BMTC has saved ₹27 crore,” he said.

 

As far as liabilities are concerned, BMTC has a debt to the tune of ₹600 crore and has been paying an interest of ₹33 crore every three months, he remarked.

 

The increase of Metro Train traffic has resulted in a 10-15% reduction in the BMTC’s revenue. Besides, the service also saw a massive strike by employees last month, which ended with a rise in their salaries.

 

Despite this, the department has notched a ₹30 crore profit during the last fiscal.

 

Among other moves, the BMTC decided to construct and repair bus exteriors by itself - without outsourcing. The move saved the BMTC whopping ₹48 crore.

 

By awarding the fuel tender to Bharat Petroleum, instead of Indian Oil, the BMTC is also saving ₹2 on every litre of diesel, besides getting a 30-day deadline for payment of fuel bills.

 

"This has helped us save ₹6.70 crore additionally," Jain added.

 

The authorities are also contemplating installing solar energy plants on the roofs of BMTC offices, similar to those mounted on Chinnaswamy Cricket Stadium.

 

The project is expected to lower power bills, besides helping the organisation attain self-sufficiency in energy.

 

All of this is a good sign for Chairman Jain, who will end his tenure on a high note. His tenure in office will be completed on 24 August.