APSRTC to move more cargo, develop properties: Chairman

Visakhapatnam: The APSRTC or the state public transport department plans to widen the cargo network, develop its properties and build malls across the state to augment its income.

Revealing this to Deccan Chronicle here, corporation chairman Mallikarjuna Reddy said the entity has huge parcels of land at every district headquarter. What had been acquired in the outskirts long ago were now in the heart of the developed cities and towns. These could be commercially exploited.

Taking advantage of the fast-rising property value and location, an aim is to develop malls on a profit-sharing basis in association with reputed private agencies.

“To begin with, we would develop the integrated Maddilapalem depot and bus complex spread over five acres adjacent to the national highway in the heart of the city. An eight-floor building will come up there, integrating it with the Metro station,’’ the chairman said.

The developed structure would also see a state-of-the-art bus complex and integrated high-end floors.

The corporation has 129 depots all over the state. The other source of income the corporation is looking at is cargo movement, which has been increasing steadily. This sector would be expanded to far corners of the statem delivering goods at the doors in just 24 hours, unlike private agencies.

“A private agency in the combined state was giving us just Rs 12 crore per annum. After taking over, we started earning Rs 75 crore. We want to raise this earnings to Rs 125 crore per annum very soon,’’ the chairman said.

He said the corporation was also purchasing diesel in the retail market as the bulk procurement proved to be expensive. This would save Rs 14 crore per month to the RTC, he claimed.

The corporation with a fleet of 11,500 buses including 3,000 hired buses carries 30 lakh passengers every day covering a distance of 39 lakh km. The present occupancy rate is 61 per cent. An average of 71 per cent occupancy would break the business even.

“On an average, we are earning Rs 13 crore per day and we want to raise this to Rs 16 crore,’’ the chairman added.