APSRTC incurs losses due to poor planning

​Amaravati: The report of the Comptroller and Auditor General of India while reviewing the records of head office and five regional offices of Andhra Pradesh State Road Transport Corporation pointed out that the management had incurred loss due to poor planning and execution of allotting its vacant space on lease.

The APSRTC had two types of revenues—operational and non-operational. But the CAG reviewed the non-operational revenue of the organisation.

The CAG pointed out that the RTC had allotted on nomination basis an open space admeasuring 4,356 sqft at Pandit Nehru Bus Station, Vijayawada in August 2015 to an entrepreneur on lease for setting up of two mini-digital theatres for a license fee of Rs 3,53,185 per month at the rate of Rs 81.08 per sqft for a period of five years. The same entrepreneur had requested an additional space of 3,773 sqft on the same premises for setting up of food court and others. The RTC had allotted the space for the same rate of license fee for 15 years.

Two more open spaces for running bakery on the same premises had been allotted through open tenders at the rate of Rs 246 and Rs 253 which were much higher than that of allotment on nomination basis. The CAG highlighted the RTC had clearly suffered a loss of revenue of Rs 91 lakh due to allotment of open space on nomination basis in respect of additional space.  

The CAG did not accept the government contention that lesser areas of occupation will fetch more license fee compared to the larger areas, where the license fee will be less. Likewise, the Tirupati regional office also incurred loss due to the cancellation of eight allotted stalls for development of depot without any firm planning, the CAG pointed out.

The CAG found fault with the RTC for non-recovery of dues from two agencies after awarding them contracts for development of vacant lands at two locations—one at Visakhapatnam and the other at Rajamahendravaram for 33 years. 

The two agencies had to pay annual premium fee from the date of agreement and additional development premium after three years from the date of agreement. The two agencies have paid part of dues and the RTC is yet to recover Rs 1.75 crore as on March 2017.

The CAG did not accept the clarification that the RTC had forfeited the security deposit and bank guarantee stating that it had failed to recover dues and accepted part payment.