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Utilization of passenger transport subsidy in Kolkata: A case study of Calcutta State Transport Corporation

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  • Gupta, Sudakshina
  • Mukherjee, Aparajita

Abstract

The present study tries to see whether the subsidy given to CSTC, which is the oldest and the largest state transport corporation operating in and around Kolkata, is really being used to cover the losses they make over the years or to merely cover-up an inefficient performance. The state owned buses are required to serve, not only non-profitable routes in off-peak hours, but also to give social security or employment to a large section of society. The burden of carrying a huge staff structure and serving at an administered and less than competitive price for welfare reasons, makes CSTC liable to an operating loss. Therefore, it makes a case for subsidy. However, the regular commuters experience regarding the condition of and the services provided by these raises a question about the justification of subsidy. In the study it is seen that the subsidy given is not based on any of the components on which it should, economically.

Suggested Citation

  • Gupta, Sudakshina & Mukherjee, Aparajita, 2013. "Utilization of passenger transport subsidy in Kolkata: A case study of Calcutta State Transport Corporation," Research in Transportation Economics, Elsevier, vol. 38(1), pages 3-10.
    • Handle: RePEc:eee:retrec:v:38:y:2013:i:1:p:3-10
    DOI: 10.1016/j.retrec.2012.05.011
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    References listed on IDEAS

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    1. Dougherty, Christopher, 2011. "Introduction to Econometrics," OUP Catalogue, Oxford University Press, edition 4, number 9780199567089, Decembrie.
    2. Karlaftis, Matt G. & McCarthy, Patrick, 1998. "Operating subsidies and performance in public transit: an empirical study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(5), pages 359-375, September.
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    Cited by:

    1. Cinzia Daraio & Marco Diana & Flavia Di Costa & Claudio Leporelli & Giorgio Matteucci & Alberto Nastasi, 2014. "Efficiency and effectiveness in the urban public transport sector: a critical review with directions for future research," DIAG Technical Reports 2014-14, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    2. Telecký Martin & Čejka Jiří & Guchenko Mykola, 2018. "Determining of Provable Loss in Municipal Bus Transport and Its Influence on Public Budgets in Sparsely Populated Areas of the Czech Republic," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 9(1), pages 105-113, May.

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