Reports & Papers
Comparison of Cost of Operations in KSRTC, Private Stage Carriages, and AITP Buses
Kerala’s bus-based public transport system, which has long been regarded as the backbone of the state’s everyday mobility, has witnessed a steady decline in the past two decades—from 35,000 in the early 2000s to 12,500 in 2023. This decline, driven by mounting financial and operational stress, has contributed to the rapid growth of personal vehicle ownership in the state. The research paper examines the cost of operations of bus services in Kerala by comparing the performance of Kerala State Road Transport Corporation (KSRTC), private stage carriages and All India Tourist Permit (AITP) buses.
Using official records and field-level data, the study analyzes the key cost components such as personnel cost, fuel cost, maintenance, taxes, insurance, permits, depreciation and other operational expenses. The analysis indicates that KSRTC incurs significantly higher operating costs, amounting to ₹1.35 per kilometre per seat, compared to ₹1.02 for private stage carriages and ₹0.95 for AITP buses. The paper observes that the higher cost of operations in KSRTC is largely due to institutional factors such as workforce structure, pension obligations, aging fleet, etc. In contrast, private stage carriages and AITP services demonstrate higher asset utilisation and greater cost efficiency. The study highlights the uneven regulatory environment within which different operators function and argues that the continued decline of private stage carriage services, alongside the growth of AITP buses, underscores the need for regulatory reform, cost rationalisation, and service innovation to restore the financial viability and public service role of bus transport in Kerala.
Nikhil Ali is a Senior Research Associate (Urban) at the Centre for Public Policy Research (CPPR), Kochi, India.
Views expressed by the authors are personal and need not reflect or represent the views of the Centre for Public Policy Research.
Nikhil Ali is an Associate, Research at the Centre for Public Policy Research. He completed his graduation in Civil Engineering from Sree Narayana College of Engineering and is a seasoned Civil Engineer with working experience at Tata Realty and Infrastructure Ltd. With a passion for urban planning, he acquired his master's degree in Urban Planning from Hindustan Institute of Technology and Science, Chennai. His expertise lies in Urban Mobility, land use planning/analysis, and water-sensitive planning.
