Daijiworld Media Network - Bengaluru (SS)

Bengaluru, Nov 18: The Karnataka State Road Transport Corporation (KSRTC) plans to foray into logistics business and is set to deploy 20 trucks in the first phase to kick start the business, officials said on Friday, November 17.

Officials said the KSRTC has placed an order to buy vehicles which are likely to be delivered by December 10.

Transport minister Ramalinga Reddy said KSRTC expects to earn Rs 100 crore annually in revenue from the logistics venture. He said the KSRTC has around 8,000 buses and each of them has space for luggage. Earlier, a tender used to be called and luggage space in these buses would be awarded to a private contractor who would go on to charge a fee for customers using the space which earned the KSRTC annually Rs 3 crore.

Ramalinga Reddy said the KSRTC had itself started booking the space last year for the first time through agents who were given 20% commission for booking parcels.

He said the KSRTC’s revenue in one year jumped to Rs 13 crore from the earlier annual revenue of Rs 3 crore thus prompting the transport corporation to venture into the logistics business independently. The KSRTC proposes to have its own fleet of vehicles for the venture, Ramalinga Reddy said.

"The corporation suggested buying 10 trucks but I suggested they start with 20 trucks in the first phase. So, each of these trucks would cost us about Rs 17 lac. The KSRTC will have 20 trucks which will be delivered to them by December 10 from Pune," he added.

Reddy said the KSRTC has enough manpower to venture into the logistics business.

"We have manpower, bus stands and depots throughout the state. Just like how you book tickets, this service can also be availed and booked even via certain apps. The service as of now will be limited to the state of Karnataka and with this KSRTC is expected to make a revenue of Rs 100 crore every year," he said.