Turnaround of the GSRTC (29)

29. Turnaround of the GSRTC 

Safe Travel — Our ST (27)

Raise your hand and board the bus.

When an officer gets a posting in the Corporation, officials are pleased — there’s a bit of freedom from the strict rules of government service. Bills at hotels can be put on account, and one gets a taste of “palace on wheels” travel. But even here it was a laborer’s world. I had to work. 

The tenures of the four MDs before me were: 7 months, 2 months, 7 months and 3 months respectively. In 1985 the MD at the time was driven out within a month and a half after an incident in which someone climbed onto his table and smashed the glass. 

In the 18-month stretch from 1998–2001 the GSRTC bought new buses on credit and things ran well for a while, but debt repayment, interest and rising costs together with falling daily loss of around ₹1 crore weakened the Corporation’s finances. Ageing fleet and negative network were bigger issues to be handled.

The Corporation of the Gods

When I took charge and sat in the office, creditors queued up. It felt as though they were demanding my father’s debts. Newspapers carried daily reports of ST bus breakdowns — a recurring saga. A staff of 58,000 and roughly 10,000 buses. The buses had grown old and employees’ focus was on wages, arrears and DA increases. Any attempt to raise revenue was immediately eaten away by higher diesel prices and DA hikes. 

The Corporation’s average annual loss had crossed ₹400 crore and accumulated losses reached around ₹2,800 crore. 

On top of that, the ST Corporation was known for the unions’ braggadocio. If you tried to curb employees, they would start agitations, each agitator costing ₹100–₹200 per person and breathing down your neck. Conductors and drivers often worked short trips of 15–20 km, so during an eight-hour shift they had only three to four hours of actual work. 

With government pay scales and union settlements being generous, the burden of losses fell squarely on the MD while others shrugged: “What can we do?” The state of the Corporation was discouraging, but how do you measure it without getting into the water?

I Drove ST

Having seen mill-worker unions and their games in my father’s time, I had no reason to fear unions.

The problems in ST were complex, but it was also a huge opportunity to do something substantial. I had a special affection for ST — its age matched mine; our birthdays were near each other. 

I also knew the Chief Minister had spent his youth standing at the tea counter of the ST canteen and learned political lessons from local leaders — so getting ST running properly became a mission. 

Between 1979 and 1985 I had sat in that seat and read for more than 150 hours and secured major jobs; now it was time to repay that debt and save the Corporation. When government commands you, you answer: we are ST’s caretakers.

Fortifying the Ramparts

Faced with those challenges, I decided first to fortify my personal discipline. We had always survived with thrift. 

I brought a bottle of drinking water from home and freed the peon from the duty of fetching water. I stopped taking tea, so that a cup of tea booked on ST account wouldn’t bother me. I brought lunch from home so there would be no expense on snacks. 

I cancelled subscription of magazines and extra newspapers except keeping two Gujarati newspapers. There was a section to place important news on ST before me. Why waste money on things we don’t read? 

Our family was health conscious and we protected our health with home remedies, therefore, no medication and burden of claim of medical reimbursement on the GSRTC. 

Except for an official flight to Delhi, I avoided TA-DA claims. My children traveled by bus, so I didn’t want to curry favours for their convenience. 

With these personal austerities, I gave myself the freedom to run ST with firm rules.

A Training in Japan

Earlier I had been selected for a three-week JICA-sponsored training on Gender Development in Fisheries Communities while I was Fisheries Commissioner. By the time I was to go, I was MD of the GSRTC. Our Transport Secretary said, “Parmar, you’re no longer in Fisheries, so I won’t let you go.” I argued that the Government of India had selected me, and JICA would bear the full cost; ST was not a permanent posting — I could return as Fisheries Commissioner or Secretary and apply what I learned. But she refused on file.

She, however, was not the final authority. Shri Ashok Saikia from the PMO had supported my nomination — how could I be stopped? I went to the Chief Minister’s office and met Dr. P. K. Mishra, who approved my travel. 

So I made my first trip to Japan and attended the training. I took Laxmi with me, but she found the cost of living there hard to bear and later left for America on her own — an adventurous journey across the Pacific to the American coast.

Facing the Fearsome Unions

The Project Development Matrix (PDM) method I had learned during my training in Japan turned out to be immensely useful in turning around the GSRTC. I began by listing out all the problems and creating a “Problem Tree.” To analyze each “why-because” cause, I organized a brainstorming session with senior officers. But before long, a storm broke out.

Our income was like eight annas while expenses were a full rupee. Due to a shortage of spare parts, about a thousand buses were off the road, and with a poor market reputation, no one was willing to give us credit. Daily expenses were ₹3 crore and income only ₹2 crore — a shortfall of ₹1 crore every day. To pay interest and principal on old debts left behind by predecessors, we needed even more money.

The Finance Department insisted that grants like student concessions be compulsorily adjusted against our dues, so the state’s credit rating wouldn’t suffer. How can you swim with your hands and feet tied? Like a father struggling to marry off his daughter, we had no option but to implement internal reforms and austerity measures.

We began cutting all unnecessary expenses. Those who loitered or shirked work were put on active duty, and short routes were extended to increase working hours. Financial austerity resolutions were implemented strictly. The unions quickly realized the new MD was tough.

To intimidate me, one afternoon during the central bus station’s break time, a massive crowd of drivers and conductors gathered — hundreds of them — and stormed the lobby and corridor and some inside my cabin. The entire area echoed with shouting and abusive slogans, including caste slurs.

I was alone inside my chamber, surrounded and helpless. Only physical assault remained. My PA called the nearby police station; the PI rushed in, saw the mob, and asked for permission to fire if necessary to protect me. I refused. I sat silently, watching the clock on the wall, taking occasional sips of water from the bottle on my desk.

The shouting and chaos went on for nearly an hour. Then one of the union leaders came to his senses, gathered the crowd, and they dispersed. The next day, the three union leaders came to me with bouquets and hoarse voices to apologize. I smiled, advised them to gargle with warm salt water to recover quickly, and sped up the reforms to revive the ST Corporation.

The PDM Matrix 

I took the PDM process forward. I formed a group of heads of various wings, divisional controllers, and depot managers for brainstorming. Together we rebuilt the Problem Tree. Then, one by one, we took each problem and applied the “why-because” analysis to identify its root causes. Once causes were listed, the remedies became clear.

We categorized the solutions — those we could implement ourselves and those requiring others’ cooperation or financial support. We prepared an implementation plan and division of responsibilities, compiled it into a booklet, and distributed it to all officers responsible for execution.

Freedom for One Rupee

Our real strength was the drivers, conductors, and mechanical staff. To bring them on board, we had to create positivity toward reforms and build a sense of ownership — to make them feel that ST’s problems were their problems.

So I began writing direct letters from the MD’s desk to drivers and conductors. One letter titled “Ek Rupiyama Mukti” (Freedom in One Rupee) — referring to the goal of narrowing the gap between EPKM (Earnings per Kilometer) and CPKM (Cost per Kilometer) — made a deep impact. Gradually, everyone woke up and joined the collective mission to pull the Corporation out of its losses. The organizational culture began to change.

Motivational Speech

How can an army win without strong generals?

We organized a major Motivational Speech program at Tagore Hall. In addition to HQ staff, officers from regional divisions and depots were invited. The stage was kept empty — only “One mic, one MD, one voice.”

I spoke for nearly ninety minutes. The hall was packed, and you could hear a pin drop as everyone listened in silence. When I finished, thunderous applause erupted and everyone rose to their feet. Our army — the soldiers and commanders of the ST revival campaign — was now ready for battle.

Steps to Reduce Expenses and Increase Revenue

As my letters gained popularity and the staff wholeheartedly joined the mission to save ST, I began closely reviewing daily reports and examining every single expenditure item in detail. The corporation had accumulated losses of ₹2,800 crores, increasing by about ₹400 crores each year.

We met with the Gujarat government to resolve this. With the support of Transport Minister Amitbhai Shah and Finance Minister Vajubhai Shah, the Finance Department finally agreed to settle long-pending dues. 

Unlike government offices—where employees receive regular salaries and benefits without strict productivity standards, and where files can wait until tomorrow—we had to keep the wheels of transport running 24x7. We were operating as part of the government’s social responsibility, but the government itself decided bus fares, collected taxes on tickets, and imposed sales tax on diesel, while restricting us financially. Eventually, the government released funds, and our accumulated deficit began to close.

Our reforms, austerity measures, elimination of wasteful expenses, and initiatives to reduce CPKM (cost per kilometre) and increase EPKM (earning per kilometre) all succeeded.

We assigned disciplinary staff—once considered idle—to major bus stations to chase away unauthorized private vehicles.

We cut short unprofitable routes, rationalized crew deployment, and extended route lengths up to 500 kilometres. Unproductive and empty trips were cancelled, resulting in a significant rise in productive kilometres.

Previously, purchase and store departments worked separately—one would buy without consulting the other, leading to duplication or unused inventory. To fix this, I merged both under one Head of Department (HoD), ensuring timely supply of required parts and better inventory management. The results were excellent.

Since the government could not fund new bus purchases, we remade old engines to keep ST’s wheels turning.

A cleanliness drive was launched. The long-neglected, foul-smelling bus stations were cleaned and restored to order. Passenger amenities were improved.

We restarted loudspeaker announcement systems, ensured staff presence at enquiry counters, locked cabin doors, and opened windows for answering.

Buses that once bore dried vomit stains were now regularly washed and maintained.

We invited creditors for debt resettlement, got excess interest waived, and negotiated lower interest rates.

ST buses began carrying public messages, turning the campaign into a mass movement. The slogan “Raise your hand, get on the bus” (“હાથ ઊંચો કરો બસમાં બેસો”) boosted passenger numbers and revenue, as buses began halting conveniently wherever passengers were.

We promoted highway bus stations to avoid delays caused by express buses entering congested city terminals.

I set up the Auction Committee under the Chairmanship of a senior General Manager to dispose of decades-old scrap, free up space, and raise additional funds for ST.

One after another, a series of reform initiatives took shape—collectively transforming the corporation.

Mobile Management

I had the habit of waking up early every morning. That’s when I began what I called “mobile management.” By 4:30 a.m., my messages would start landing on the phones of divisional controllers and depot managers. Their day began with the MD’s message and ended at night after reporting back with results.

We stabilized expenditure figures and boosted revenue. As a result, within the very first year, the annual estimated loss dropped from ₹420 crore to ₹119 crore. The corporation’s cumulative losses, which had reached ₹2,800 crore, came down to ₹1,100 crore — and later further reduced to ₹301 crore.

We worked even harder. Although diesel price hikes and DA payments added some financial strain, we managed to bring the ST Corporation to a zero cash loss position. The next goal was to eliminate depreciation losses and move towards becoming a profitable enterprise.

Awards and Recognition in Delhi

From operating buses to innovating their maintenance, despite an ageing fleet, we achieved the highest diesel kilometre efficiency (KMPL) in the entire country. The national Transport Minister presented us with an award for this achievement.

I was appointed as Chairman of the Purchase Committee and later elected Vice Chairman of the Association of State Road Transport Undertakings (ASRTU) — an organization representing ST corporations from 16 Indian states.

I also became Chairman of the Central Institute of Road Transport (CIRT), Pune.

We even went on a study tour to Europe, visiting the Volvo factory and observing transport management systems across different countries — gaining valuable insights for India’s own network.

CSR Support from IOC

At that time, IOC (Indian Oil Corporation) was our diesel supplier, but with Reliance entering the market, we gained negotiation leverage.

During monsoons, the Gandhinagar Pathikashram Bus Station used to be full of potholes. Buses would sink into slush, and passengers — even those parking scooters — had to jump across puddles to get out.

We negotiated diesel cost relief with IOC, and in return for renewing their contract, IOC undertook a CSR project worth ₹2.5 crore, constructing a RCC road at the Gandhinagar Bus Station as smooth and strong as an airport runway. Even after twenty years, not a single stone of that road has come loose.

Clearing Encroachments

At the ST Central Bus Terminus (Geetamandir, Ahmedabad), a non-Gujarati priest had encroached upon an open space within the premises. Officials were hesitant to act, fearing the issue might be given a religious colour or get stuck in legal proceedings.

We strategically chose Friday evening to carry out the eviction — successfully removing both the encroachment and the priest without incident.

Later, the cleared land was developed into a new terminal, the road was widened, and express services were strengthened.

This marked a new chapter in ST’s transformation — turning a struggling public utility into a disciplined, efficient, and forward-looking organization.

Beginning the Shift of the Central Office

At the Geetamandir Central Bus Terminus, gatherings of staff, drivers, and conductors would form within moments — giving unions frequent opportunities to stir up trouble. As a precautionary measure, I relocated my chamber and those of senior officers to the Naroda Central Workshop, thereby initiating the process of moving the headquarters there.

Free Riders and Reckless Drivers

Buses were not always well-handled. To control fare evasion, we launched a campaign and increased the number of flying squads. We stopped free travel by off-duty staff and their relatives, though we hesitated to collect fares from police personnel — fearing repercussions in MACT (Motor Accident Claims Tribunal) cases.

We faced a major moral dilemma: if we took action against a driver involved in an accident, the corporation risked a large MACT compensation claim. But if we tried to reduce MACT liability, the guilty driver went unpunished.

Most of our staff were sincere, but a few were dangerously reckless. Once, when I stopped a rash driver on the road, he got down and came charging at me with the route board in hand — about to strike. Luckily, something made him pause; otherwise, I might have lost my life that day.

On another occasion, one evening during the monsoon, my Sikh driver sped over a dead sheep on the Gandhinagar–Ahmedabad road. I narrowly escaped death — and ironically, later I had to testify in court to defend that same driver out of humanitarian concern.

Meeting with the Chief Minister

By then, the Chief Minister’s attention had turned toward us. At that time, he used to hold departmental review meetings to understand problems and resolve them. To make governance more people-centric and forward-looking, he had started “Chintan Shibirs” (brainstorming retreats) for senior officers to deliberate on critical issues and chart the state’s future direction.

In the first Chintan Shibir, the MDs of boards and corporations were not invited, but by the second one, we were included — giving us new energy and a sense of purpose as karmayogis (dedicated workers).

He invited me to present our case of the GSRTC. The Minister, the Chief Secretary and other important functionaries remained present. Over two days, I gave a seven-hour presentation — five hours on the first day and two on the second. What other Chief Minister would listen to an MD with such focused attention for seven hours? Only Modi Saheb could.

Thanks to his support, the Finance Department began viewing us more favorably and approved a budget provision for 1,000 new buses each year through loan assistance. In the 42-year history of GSRTC, this was a major breakthrough.

Eco-Friendly Initiatives

Being deeply committed to environmental improvement, the Chief Minister suggested that we procure 15 CNG buses for the Ahmedabad–Gandhinagar route. Though the cost difference wasn’t financially beneficial, we accepted it for the sake of cleaner air.

Another initiative involved producing biodiesel from jojoba seeds and experimenting with 5% blending. On paper, the tax-free biodiesel seemed cheaper — and if we had received similar tax relief on regular diesel, GSRTC could have become a profit-making corporation.

Nevertheless, environmental protection was important in itself, even though the biodiesel project didn’t last long.

Just One Step Away from Profit

We continued our reform efforts. After achieving zero cash loss, our next goal was to eliminate depreciation loss, because unless we did that, the corporation could never become profitable. Without profits, no bank would lend us money to buy new buses or build new assets. The government would provide fund to buy new buses from the next year, but our fleet was mostly filled with old, worn-out vehicles — many of which had already run 750,000 kilometers, and most over 500,000 kilometers. How long could we keep them running by just rebuilding old engines?

Breakdowns began to increase, and the Finance Secretary locked the treasury. With no loans or state support available, it seemed only a matter of time before ST buses would stop running one by one — and staff would face layoffs.

Once again, I began scrutinizing each expense item closely. My eyes stopped at one particular item: according to the settlement with the union, PF (Provident Fund) deductions were at 10%, and the corporation had to contribute an equal amount. However, by law, loss-making organisations were only required to contribute 8.33%. Reducing the PF contribution from 10% to 8.33% could save the corporation ₹54 crore annually.

Before implementing it, I created an Employee Welfare Fund, contributing one month’s salary myself and appealing to all staff to donate one day’s salary each. Then, as a loss-making entity, we legally reduced both the employees’ PF deduction and the corporation’s share to 8.33%.

The unions took the matter to court. Fortunately, we had already filed a caveat, so the court did not grant a stay order.

Soon after, the unions called for a statewide one day strike, halting transportation across Gujarat. Negotiations were held in the presence of the Chief Secretary, but in my absence. The Transport Minister, through the Transport Secretary, sent me a message of apology — and my transfer orders followed.

The Municipal Commissioner of Surat, Mr. Aloria, was appointed as my successor, while I was transferred to serve as Commissioner of Cottage Industries, returning once again to a Gujarati assignment.

The 27 months I spent leading Gujarat State Road Transport Corporation (GSRTC) remain among the most significant in my administrative career. During that time, I successfully brought a debt-ridden, loss-making organization with 58,000 employees and an aging bus fleet to the threshold of profitability. I left it with the permanent gift of an annual budget provision for 1,000 new buses from the government.

I didn’t leave out of exhaustion, but with the deep satisfaction of having been a true karmayogi — one who works without attachment to results.

What did I gain in return?

A new opportunity — to play a long and meaningful innings in social service through the Cottage Industries Department. 

“कर्मण्येवाधिकारस्ते मा फलेषु कदाचन”

You have the right to work, but never to the fruits thereof.

4 October 2025