Assam State Transport Corporation Essay Example
Assam State Transport Corporation Essay Example

Assam State Transport Corporation Essay Example

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  • Pages: 3 (566 words)
  • Published: September 21, 2018
  • Type: Case Study
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Brief History Of Public Transport And ASTC. India's public transport history started after gaining independence. Back then, the majority of the population lived in rural areas with limited access to developed villages and modern transportation options. The citizens, mainly impoverished, faced difficulties in availing private sector transportation services. Consequently, government planners undertook the responsibility of offering rail and road transport services through the public sector. They acknowledged that transportation plays a crucial role as a catalyst for development.

The government of all states initiated their bus transport system to link the villages with their political and commercial centers. Assam Government commenced this effort by operating only four buses between Guwahati and Nagaon in 1948. In order to enhance the efficiency of these services, the Government of India implemented the State Transport Corporation Act, granting these organi

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zations autonomous authority. Following this trend, the Assam State Transport department was transformed into Assam State Transport Corporation (ASTC) on 30th March 1970.

The Corporation initially provided a satisfactory service to the people, gaining public goodwill. However, due to inherent weaknesses in the public sector and other constraints, the corporation experienced economic decline and failed to deliver satisfactory service. Over time, ASTC faced various challenges such as overstaffing, an uneconomic fare structure, and the rapid growth of private buses. Additionally, it provided services at a loss for social obligations. These factors contributed to the gradual deterioration of the Corporation, ultimately leading to its inevitable closure.

During the year 2001, the State Government implemented measures to revive and reorganize the ASTC (Assam State Transport Corporation). These steps proved to be crucial in saving ASTC and positioning it as one of

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the beneficial corporations under the Assam Government. ASTC is led by a twelve-member Board and is divided into nine divisions, each supervised by a Divisional Superintendent. The divisional level maintains primary accounts which are then consolidated at Headquarters in Guwahati.

Business Model Pre ; Post Revival Scheme
Pre Revival scheme, ASTC operated as a traditional corporation, specifically in the public transportation sector. From 1948 until the implementation of the revival scheme, their focus had been on providing transportation services to the public. Their primary objective was fulfilling social obligations, without concerning themselves with economic losses. Their revenue came primarily from passenger fares, cargo transportation, and advertisement fees. However, after the introduction of the "Revival scheme," ASTC altered their approach to revenue generation.

Originally focused on public transportation, ASTC has transformed into a comprehensive transport service provider. It now not only aims to transport the public from one place to another but also prioritizes comfort, affordability, and convenience. ASTC has fully utilized its resources in order to generate revenue. They have leased their land to unemployed individuals for opening shops in the area, resulting in rent/fees income. Furthermore, they have commercialized petrol pumps and allowed advertisement on buses. Additionally, private companies are now operating buses under the ASTC brand.

The concept was similar to the Airport Authority of India model, where private players were required to pay for using the name of ASTC, as well as utilizing parking and other facilities provided by ASTC. Private players willingly accepted this invitation, as it would grant them access to a vast network of routes and benefits offered by the ASTC, allowing them to expand their revenue

generation capabilities. The key aspect of this approach is its professionalism, but it also requires professional management in decision-making, implementation, and execution.

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