TU study exposes financial anomalies between TRTC and TUTCL, revealing profit distortions, asset mismanagement, and structural inefficiencies. Researchers recommend merging both transport corporations to improve fiscal transparency, and strengthen Tripura’s public transport sustainability.
The functioning of the Tripura Road Transport Corporation (TRTC) and the Tripura Urban Transport Corporation Limited (TUTCL) presents a compelling case of long-standing gaps in planning, coordination, and oversight within the State Public Sector Enterprises (PSEs)..
The contrasting trajectories of these two PSEs are both unusual and revealing.
A recent study titled “Evaluation of Finances of the State of Tripura,” conducted by a Tripura University research team highlights a long-overlooked fiscal anomaly in these two: while one entity thrives on paper despite having no infrastructure, the other is struggling despite possessing the necessary workforce.
The data reveals a stark inversion of assets and personnel between the two Public Sector Enterprises (PSEs).
Overall, the performance of several State Public Enterprises in Tripura has remained unsatisfactory, with many incurring persistent losses and contributing minimally to the State’s financial health. However, the contrasting performance of TUTCL and TRTC stands out sharply.
TUTCL has consistently reported profits over the years despite lacking basic infrastructure and manpower. In contrast, TRTC has struggled financially despite having a workforce of more than 125 personnel and necessary operational infrastructure, though it controls far fewer vehicles compared to TUTCL.
The study, led by Subhrabaran Das as Principal Investigator, with Kiran Bhowmik as Research Associate and Srijan Debnath as Research Assistant, conducted a detailed comparative analysis of both organizations.
It ultimately recommended structural changes in TUTCL and TRTC to ensure optimal utilization of assets and long-term sustainability.
According to the findings, TUTCL owns 173 vehicles but reportedly operates with just one employee. It does not have its own office premises, dedicated parking facilities, or directly employed drivers and conductors.
In contrast, TRTC operates with a full workforce but controls only 27 vehicles.
Despite these structural imbalances, TUTCL’s audit reports indicate consistent profitability from 2010–11 to 2023–24 (except in 2010–11).
TRTC, on the other hand, faced significant financial stress between 2017–18 and 2022–23.
During this period, it recorded a cumulative loss of Rs 4.35 crore, largely driven by a sharp loss of Rs 3.63 crore in 2022–23 alone.
Over six years, TRTC’s annual income declined drastically—from Rs 22.24 crore in 2017–18 to Rs 11.85 crore in 2022–23—nearly halving within that span. Notably, employee expenditure did not reduce proportionately, intensifying the financial strain.
At first glance, TUTCL’s financial performance appears impressive. The corporation recorded its highest profit of ₹56.89 lakh in 2015–16 and continued to post profits, including Rs 41.51 lakh in 2023–24. However, a deeper examination reveals a more complex reality.
The Tripura University study observed that TUTCL’s reported profits “do not show the actual picture.”
The corporation acquired 173 buses in two phases between 2010 and 2015 under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM).
The total cost of the buses was approximately Rs 43 crore, funded in a 90:10 ratio by the Ministry of Urban Development, Government of India, and the Transport Department, Government of Tripura. TUTCL’s authorized capital stands at Rs 10 crore, of which only Rs 90.10 lakh is paid-up capital.
Under Accounting Standard (AS) 12 relating to government grants, the book value of these 173 buses is recorded at just Rs 173 – just 1 rupee per vehicle – in TUTCL’s accounts.
Consequently, the revenue generated from operating these buses and the profits reported may not accurately reflect the corporation’s true financial position.
The study pointed out that TUTCL never had the financial capacity to independently procure such a fleet.
Moreover, it lacks adequate resources to replace aging buses and sustain urban transport services. Since 2017, TUTCL has reportedly not received any grants from the State Government.
Data from the Economic Review of Tripura 2022–23 adds further perspective regarding utilization of assets.
Of the 173 buses, only 47 were operational. Among 76 off-route buses, 50 were handed over to TRTC, while the remaining 26 were lying idle in TRTC’s parking facilities, undergoing depreciation.
The broader implications are significant. The coexistence of two transport corporations with almost similar functions, uneven asset distribution, and contrasting financial narratives points to systemic inefficiencies.
In this context, the Tripura University study recommended merging TUTCL and TRTC into a single unified entity.
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Justifying it’s recommendatiom, the TU Study mentioned, given the limited scale of Tripura’s urban landscape, maintaining a separate urban transport corporation may not be economically viable.
A consolidated transport body, the study argues, could improve operational efficiency, rationalize manpower and assets, enhance financial transparency, and potentially strengthen the overall fiscal health of the State.
