Terms of Reference

Evaluation of Karnataka State Road Transport Corporations (KSRTC,

NWKRTC and NBKRTC) from 2014-15 to -2019-20

Table of Contents
l. Title of the study ........ .................2

2. Department................ ..................2

3. Background and Context..... ........2

(KSRTC)...............
3.1 Karnataka State Road Transport Corporation .............3
3.2 North Western Karnataka Road Transpoft Corporation (NWKRTC)............. ..............4

3.3 North Eastern Karnataka Road Transporl Corporation (NEKRTC).............. ...............6

4. Evaluation Need, Scope and Objectives........... ..............7

4.1 Need for Evaluation .............. ............1

5. Methodology............. ..................9

techniques.................
5.1 Analytical ........................ I I

6. Deliverables and time schedule.... ...............12

7. Quality expected from the Evaluation Repor1....... ........ 15

8. Structure of the report ............... 16

9. Administrative arrangements ...................... 16

5. Professional competencies expected to handle the assignment ......... ...............17

10. Cost and Schedule of Budget Releases ..................... 17

11 . Contact person for the details of the study .. .. .. .. . . .... .. 17

Page L of 22
 1. Title of the study
Evaluation of Karnataka State Road Transporl Corporations (KSRTC, NWKRTC, NEKRTC)
from 2014- 15 to 2019-20

2. Department
Deparlment of Public Enterprises

3. Background and Context

Road transport is vital to economic development, trade, and social integration, which rely on
the conveyance of both people and goods. Easy accessibility, flexibility of operations, door-to-
door service and reliability have earned road transport an increasingly higher share of both
passenger and freight traffic vis-d-vis other transport modes. The bus-based transport system plays
a major role in providing short, medium, and long-distance mass passenger mobility and for the
movement of goods, thereby offering a cost-effective alternative to various modes of transport in
India. The bus services are provided by both Private Bus Operators (PBOs) as well as publicly
owned State Transport Undertakings/Corporations (STUs).

Karnataka State Road Transport Corporation (KSRTC) was established in 1961 with the aim
to provide efficient, adequate, economic, and well-coordinated transport services to the commuters
of the State with its head office at Bangalore. GoK decided to divide the Corporation into four
separate Corporations based on geographical location to fulfil the diverse needs of commuters
through effective and efficient control. Accordingly, KSRTC has been divided into Bangalore
Metropolitan Transport Corporation (BMTC) functioning from 15-08-1997, North Western
Karnataka Road Transport Corporation OIWKRTC) from 0l-11-1997 and North Eastern Districts
of Karnataka (NEKRTC) from 01-10-2000. KSRTC remained as an independent Corporation with
effect from October 2000 catering to the needs of 17 southern districts. Measuring performance,
understanding external environment, determining motivation, and examining capacity of RTCs is
crucial for its future development. RTC is considered as a good performer when it balances
effectiveness, efficiency and relevance while being financially viable. The current study is limited
to evaluation of KSRTC, NWKRTC and NEKRTC. The major goal of the
KSRTCAIWRTCAIEKRTC is to increase traffic revenue and non-traffic revenue by optimum
utilisation of resources and assets. The objectives of the KSRTCA{WRTC/I{EKRTC is to provide:

o The public with road transport facilities marked by high reliability, reasonable comfort,
and moderate costs, within the existing technological and economic constraints.

o To constantly explore the newest and latest technological development in the field of road
transport to provide better, safer, and cheaper road transport to the travelling public.

o To build up and maintain a high technological capacity in the Corporation to keep ever
growing fleet in an excellent condition

The Corporation functions in 3 - tier system, i.e., Corporate offrce, Division office and Depots.
All the Directors are appointed by the State Government.

Page 2 of 22
Managerial, operational, and financial status of KSRTC, NWKRTC andNEKRTC are presented
in separate sections below.

3.L Karnataka State Road Transport Corporation (KSRTC)

Managerial aspects

Management: Board of KSRTC consisted of 6 Directors including a Chairman (non-official).

The remaining 5 Directors are official Directors. There are totally 17 Divisions, Bangalore
Central, Ramanagara, Tumkur, Kolar, Chikkballapur, Mysore City, Mysore Rural, Mandya,
Chamarajnagar, Hassan, Chikmagalur, Mangalore, Puttur, Davanagere, Shivamogga,
Chitradurga and Kempegowda Bus Station. There are 84 depots, 166 permanent bus stations, 2
regional workshops, 1 central training institute, 4 regional training institutes, 1 printing press and
I hospital.

Services and Fare Structure: The Corporation adopts a differential passenger fare for each
class of service based on the type of service and comfort level. For instance,65.9 paise per km
for ordinary services 240 paise per km for the Multi- axle NC and sleeper coaches A"/C.

Subsidies and Best Practices: Free Bus-passes to all SC/ST students till 7th standard and an
additional 25Yo concession to girls studying in high school and to senior citizens. Free bus passes
are issued to National Shourya Prashasti award winning children up to the age of 18 years,
freedom fighters and blind persons. In addition, concessional bus passes to the physically
handicapped persons.

Any Where Any Time Advance Reservation (AWATAR) service facilitates commuters on
user friendly features including display of layout of vacant seats in the bus, facility for pre i
postponement, partial cancellation, online reservation through payment gateway, e-ticket
printing of home PD / anywhere, booking of tickets through credit cards, etc.

Intelligent Transport System (ITS) has been implemented in all buses of Mysore City
Transport Division. The project scope includes 500 buses, 105 bus shelters and 45 platforms.
ITS project is disseminating the bus arrival and departure information in real time through 167
passenger information system boards, 20 small screens and 16 big screens. The same is also
provided through SMS, IVRS and Commuter Portal for public usage.

Electronic Ticketing Machines (ETM) with GPRS/GSM and Bluetooth are being used
and software has been developed to get Real Time Passenger Information. Software has been
implemented to calculate GST for each ticket in premier services. Daily passes for City Service
and Volvo services are issued through ETM machine. Issue of intercity and integrated passes
has been developed.

Most depots offer facilities like Digital Display and Intelligent Transport System, Tourist
Information System, Two Wheelers and Four Wheelers Parking Facility, Public Addressing
System, Pre-paid auto rickshaw and taxi, etc are provided in addition to basic facilities like
drinking Water, Seating Arrangements, Modern Toilets, Canteen Facilities and Reservation

Page 3 of 22
Counters. The employees are offered benefits like credstaff rest rooms, Leave Management
System through Kiosk located in depot and divisional workshops, Online Provident Fund and
Voluntary Provident Fund facility and Health check-up schemes which are common to all
corporations.

Operational Aspects
KSRTC operates 8145 Schedules utilizing 8535 vehicles, operating 29.26lakh kms/day
eaming gross revenue of Rs.947.83 lakh and carrying 29.65 lakh commuters daily with
workforce of 38880 employees. Thus, KSRTC operated 7138.57 lakh effective kms during the
year 2019-20 (up to November-2}L9) as against 7042.641akh effective kms Operated during the
same period of previous year. The percentage fleet utilization has increased to 93.0 during the
current year from 91.6 in previous year. During the current year period it has inducted 162 new
buses and replaced 304 old vehicles which were not fit for operation. The percentage of vehicles
scrapped to the total vehicles was 3.4. More details on operational indicators is given inAppendix
Table l.

The overall rate of breakdown was 0.02 per 10000 kms and rate of accidents was 0.10
per 100000 kms. The percentage of regularity in arrivals declined from 95.2Yo to [Link], while
percentage regularity in departures declined from95.2 in2017-18 to 94.7 in 2018-19. The rate
of public complaints per lakh passengers was 0.87.
Financial Status
During the year 2018-19, the Corporation incurred a loss of Rs.134.93 crores as against
a profit of Rs.4.50 crores made during 2017-18. KSRTC need to pay 5.55% of traffic revenue as
motor vehicle tax and during the year 2018-19, the Corporation has paid motor vehicle tax of
Rs.175.35 crores.

The corporation incurs operating expenditure and non- operating expenditure. The
operating expenditure includes all items of revenue expenditure and capital charges like
depreciation, interest on capital and loans, etc while the non-operating expenses which includes
dependent depreciation, insurance, and registration fees, etc. The operating expenses increased
from 3238.29 crores in2017-18 to 3597.16 crores in2018-19 while the non-operating cost
increased from78.67 to 86.77crores. More details on financial indicators is given inAppendix
Table 2.

3.2 North Western Karnataka Road Transport Corporation (NWKRTC)

Managerial Aspects

Management: The Board of NWKRTC consists of 7 Directors of which the chairman is the
non-official Director and remaining are official Directors who are representatives of State
government. The NWKRTC has the Corporate Office at Hubballi with 9 operating Divisions at
Belagavi, Hubballi, Dharwad, Bagalkot, North-Canara, Gadag, Chikkodi, Haveri and 51
operating depots and 158 bus stands in its jurisdiction. Besides there is one Regional Training
Institute and Regional Workshop at Hubballi.

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Services and Fare Structure: Besides operation of ordinary services, Corporation operates
Mofussil routes, the Express, Non-stop, and Night services in addition to premier services on
long routes. The corporation adopts a differential passenger fare for each class ofservice based
on the type of service and comfort level ranging from 65.9 paise per km for ordinary services
240 paise per km for the Multi- axle A/C and sleeper coaches A/C.

Subsidies and Best Practices: NWKRTC is extending concessional bus passes to the public for
the few routes for school and college students, physically handicapped persons, senior citizen
fare concession (25%) for passengers of age 65 and above. Free bus-passes to the freedom
fighters and to the blind persons. It also provides services with concessional rate for
schools/colleges for excursion, educational tour, etc.

Its recent contribution is women buses from Hubli to Dharwad. It has tie-up with'Hubli
- Dharawad- One' service providers. To analyse schedule wise Activity Based Costing (ABC),
in house IT team has developed ABC software was and is implemented in all Divisions of the
Corporation. IT department has successfully developed and installed Sevo Spandana softwarc in
all the depots, divisional offices, regional workshop, and central offices of Corporation to address
the employee grievances proactively and it is working successfully.

With Smart Leave Application Management System, crew can apply leave online and get
acknowledgement for the same. Based on quota leave will be automatically get sanctioned. To
bring transparency and to avoid partiality in duty allocation and to allocate duty as per rota,
"Seniority based duty allocation through counselling" software is developed by IT Department
and this software has been installed in all the depots.

Operational Aspects

During 2019-20 (up to Nov-2019), the Corporation has a workforce of about 23171
employees. It operated 4631 schedules utilizing 4899 vehicles, operating 15.82lakh Kms per
day, earning gross revenue of Rs.493.80 lakh and carrying22.46lakh passengers on an average
daily. It has extended services to 4519 villages out of 4609 villages, the percentage service
provided being 98%. More details on operational performance is given in Appendix Table 3.

The overall rate of breakdowns per 10,000 kms during the year 2018-19 has been static
at0.03 asin20l7-lS.Therateofaccidentsperlakhkmsisalsostaticat0.0Tasinpreviousyear.
Rate of public complaints per lakh passengers is increased to 0.03 from 0.02 during 2017-18.

Financial Aspects

During the year 2018-19, Corporation incurred loss of Rs.89.07 crores as against the
losses of Rs.71.98 crores during 2017-18. During 2018-19, there is increase in HSD (High Speed
Diesel) cost by Rs. 102.24 crores and staff cost by Rs. 59.00 crores as compared to previous year.
In spite of this, loss is increased by Rs. 17.09 crores. During 2019-20 (up to 30-ll-20l9) loss is
decreased to Rs. 105.08 crores from Rs. 180.26 crores during the corresponding period of the
previous year. It is mainly due to increase of Rs. 79.82 crores reimbursement towards concession
pass from Government as compared to previous year. The operating expenses increased from

Page 5 of 22
Rs.1845.84 crores in 2017-18 to Rs.1998.47 crores in 2018-19, while the non-operating cost
increased from Rs.33.78 crores to Rs. 37.43 crores. More information on financial indicators of
NWKRTC is given inAppendix Table 4.

3.3 North Eastern Karnataka Road Transport Corporation (NEKRTC)

Managerial Aspects

Management: NWKRTC consists of 8 Directors of which the chairman is the non-official

Director and remaining 7 are official Directors. It has the Corporate Office at Kalburgi with 9
operating Divisions at Yadagiri, Kalaburagi,Bidar, Raichuru, Ballari, Koppala, Sedam, Hosapete
and Vijayapura. It has 52 depots, 149 bus stands, 1 regional workshop and2 training institute.

Services and Fare Structure: Besides operation of ordinary services on mofussil routes, the
Corporation operates Express, Non-stop and Night services, in addition to Deluxe and Ultra-
Deluxe/Rajahamsa [Link] Corporation adopts a differential passenger fare for each class
of service based on the type of service and comfort level ranging from 71.23 paise per km for
ordinary services to 240 paise per km for the A/C sleeper coaches.

Subsidies/ Externalities and Best Practices: NEKRTC is extending concessional bus passes to
the public for the few routes, school and college students, physically handicapped persons, senior
citizen fare concession (25%) for passengers of age 65 and above. Free bus-passes to the
NEKRTC employees, freedom fighters, blind persons, and district-recognised journalists.
Concession of 50%o on fares is provided to drama troupes/yakshagana troupes sponsored by the
Karnataka Sangeetha Nataka Academy. Widows/Wives of freedom fighters are issued with free
journey coupons of Rs. 2000 per annum. The children who were honoured by the Central
Govemment with "Shourya Prashasti" are issued free pass to travel in mofussil, city/sub-urban,
express and Rajhamsa services throughout the state until they attain 18 years. The city buses
have been fittedwith GPS-based present and next stop announcement, LED destination boards,
pneumatic doors and comfortably ergonomically designed seat facility. The computerised Public
Information System (PIS) was introduced in 53 bus stations in the Corporation.

Operational Aspects

NEKRTC is serving 92o/o of the villages in its area (3,859 out of 4,203) with transport
facility. During the year 2019-20 (up to Novemberl g), the Corporation operated 4256 schedules
utilizing 4701 vehicles. It has scrapped 166 old vehicles which were not fit for operation. It has
operated 14.17 lakh km and earning daily gross revenue of Rs.4.91 crores. More information on
operational indicators of NEKRTC is given in Appendix Table 5.

The overall rate of breakdowns per 10,000 kms during the year 2017-18 has been reduced
to 0.08 from the previous year which was at 0.09. The rate of public complaint per lakh
passengers was at 0.07 during 2017-18. All 328 complaints received from the public during the
year were investigated and suitable action taken wherever warranted. In all, 263 complaints were
disposed of and remaining 65 complaints were under various stages of disposal as at the end of
the year.

Page 6 of 22
Financial Aspects

During the current year 2019-20 (up to November 2019), the Corporation incurred loss of
Fts.92.29 crores on total revenue as against the previous year period loss of Rs.123.69 crores.
The loss of the Corporation is decreased by Rs. 31.40 crore as compared with the margin of the
previous year period. The operating expenses during the same period was increased from 923.39
crores to 947.63 crores, while the non-operating cost increased from Rs. 260.58 to Rs. 287.63
crores. More Information on financial indicators of NWKRTC is given inAppendix Table 6.

4. Evaluation Need, Scope and Objectives

4.L Need for Evaluation

There is dire need for the RTCs to balance effectiveness, efficiency, relevance, and
sustainability while being financially viable considering following factors.

o Financial status of Corporations is influenced by five major factors. First, Government

bus operators are liable for as many as 13 different taxes on their assets and operations.
Second, non-refund or delayed re-imbursement of subsidies to compensate for bus travel
concessions to different segments of society. Third, State Governments' compulsive
directives to operate bus services to connect remote villages has resulted in low
occupancy in buses. Fourth, inflexibility of their fare structure due to lack of economic
principles of demand and supply and economic valuation while developing pricing
system and finally, crew productivity and utilisation of resources. This has influenced in
rising operating and non-operating expenditure.

Quality assumes greater importance and better quality of service by way of improving
punctuality, regularity in services and reducing the rate of breakdowns, accidents and
providing courteous services, etc bring good name to the undertaking. It is imperative on
the part ofservice provider to design and develop specific services at an appropriate cost
to address the needs of different categories of commuters.

The halt or reduction to the transport operations due to COVID- 19 pandemic has
aggravated the financial viability of the Corporations arising from declining revenue and
increasing operating and non-operating expenditures.

4.2 Scope

The scope of the study covers the assessment of perforrnance of the three corporations across all
the divisions and districts in the State during the period 2014-15 to 2019-20 covering interstate
and mofussil services, long and short routes, rural and urban and night services and different
types of bus services. The purpose of evaluation is to examine to what extent the objectives of
the Corporations are achieved with respect to operational efficiency, technology adoption and
delivery of services and suggest suitable measures to increase competitive strength and service
delivery.

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4.3 Objectives
1. Estimate the efficiency of the Corporations and Depots and suggest measures for
promoting efficiency
2. Comparative analysis of KSRTC, NWKRTC and NEKRTC across all types of services
and terrains
3. Examine existing pricing policy (fare structure) of the corporations for all types of
services and terrains and suggest effective pricing policy.
4. Perform supply-demand analysis considering both public and private service providers
across all types ofservices and terrains.
5. Study the modern technological developments, best and sustainable practices (including
e-mobility) in road transport from national and state experiences and suggest its
relevance for Karnataka.
6. Impact of Covid-19 on functioning of corporations in general, on operational modalities
and financial status of the corporations and contract workers and hiring services.
7. Study the impact of the Covid-l9
8. Review of existing policies of the organtzations and hurdles in flexibility of operations
Indicative information on indicators is providedinAppendix Table 7.
The following issues need to be factored into the objectives of the study.
Managerial Aspects
o The manpower planning strategies adopted at headquafters and district level offices and
estimation of actual requirement of various staff.
o Demand-supply analysis of buses, depots, training institutes, bus stands and other facilities.
o The best and sustainable practices adopted by the corporations leading to better delivery of
services including dispute settlement mechanism
o Steps taken by the corporation for the development of professional competencies of the
employees and to what extent these trainings have translated into efficiency of the staff
. Review the existing policy for quality control in comparison with other such organization
in the State and in other States
o Review the annual business/action plan of the corporation, policy hurdles hindering
flexibility of operations, procedures / guidelines and examine to what extent the corporation
can achieve the set targets and identify the factors hindering the target achievement by the
corporation.
Operational Aspects
o Services rendered in terms of regularity, maintenance of service quality and time schedule.
o Reasons for low occupancy rates and identifu trends observed across types ofservices and
terrains and suggest measures for its improvement.
o Implications of the competition by private transport and the initiatives taken to compete
with the local private road transporters effectively
o Factors influencing preparation of transport-time schedule, criteria for bus cancellation and
additional bus for a particular location

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 . Gross, effective, and dead kilometre operated by bus type vary across divisions. Identify
the reasons for increase in dead kilometres and suggest measures for its reduction.
. Influence of technology upgradation like advanced automation -Intelligent Transport
System (ITS) in improving performance and reducing accidents.
o Measures taken by the corporation for providing modern, safe, and affordable transport
services while being financially viable.
o Operational indicators to be estimated using formulas provided in the Appendix Table 8.
Financial Aspects
. The capital structure of the corporation and different categories of revenue receipts earned
by the corporation at divisional and depot level.
o Mapping the traffic revenue generated by route and bus type lservice type across division
and depots and suggest measures for higher revenue generation.
o Present and the future earning capacity, profitability, and solvency status of the
organrzation.
. Ways to reduce the operating and non-operating expenditures and increase revenues
considering changing costs and subsidies
o Current pricing policy and suggest affordable pricing policy considering sustainability of
the corporations.
o Financial indicators to be estimated using formulas provided in the Appendix Table 9.
Lubour Productivity and Welfare measures
o Nature of staff- permanent- contract- and hiring practices.
o Measures taken to increase labour productivity -Training and capacity building.
o Functioning of Labour unions in the corporations- Strikes and lock outs
o Measures taken for the welfare of staff and other contract workers
. Wages and working conditions
. Gender issues- safety and security
o Staff and management relations- Review of Committees.
o Impact of Covid-l9 on contract workers and hiring services.
Other Issues
o Comparative study of an efficiently performing organrzation from neighbouring states.
o Best and sustainable practices adopted in different organ\zations including e-mobility

5. Methodology
5.1 Data

The study should consider both secondary and primary data from 2014-15 to 2019-20 for
organisation evaluation of KSRTC, NWKRTC and NEKRTC.

Secondary data: should be collected from different sources like annual reports, publications,
transportation journals and operational records of KSRTC, NWKRTC and NEKRTC.

Page9 of 22
Primary data: should be collected from corporation staff, private service providers and
commuters covering the jurisdiction of KSRTC, NWKRTC and NEKRTC using multistage
stratifi ed proportional random sampling.

Board and Corporation Staff: Sampling framework is presented in Table l. In the first stage, 6
divisions out of 17 from KSRTC, 3 divisions out of 8 from NWKRTC and 3 divisions out of 9
from NEKRTC should be selected following the criteria of low, moderate and higher profits (one
in the bottom, one in middle range and top one division based on ranking on the basis of financial
performance of divisions).This criteria would correspond to about 35 %( 12) of the total divisions
(34). In the second stage, 3 depots from each division should be selected following the same
criteria, totalling to 36 depots. This would coruespond to about 19 % (36) of the total depots
(1 87).

Table L: Sampling framework

Cornoration Division (Staee 1) Depot (Stase 2)
Total Sample Total Sample
KSRTC I7 6 84 6*3:18
NWKRTC 8 J 51 3*3:9
NEKRTC 9 J 52 3*3:9
Total 34 t2 187 36

*Note: The depots to be drawn in a representative manner to include interstate and

mofussil services, long and short routes, rural and urban, day and night services,
different types of bus services - ordinary, express and luxury, city, suburban, interstate,
express, ordinary, Rajahamsa, Sleeper and Multiaxle, different terrains -hinterland,
plains, hilly, coastal, monopoly, non-monopoly.

In the final stage, data should be collected using a structured and pre-tested questionnaire
from 5%o of the board and staff of RTCs including the printing and training wings. By using this
criterion, if less than 1 sample respondent is arrived, then minimum of 1 sample respondent
should be considered. Sample respondents should be selected based on the Probability
Proportional to Population criteria. Interactions will include office support staff performing
various roles and at various levels. Sample respondents include Managing Directors, Divisional
Controllers, Divisional Traffic Officer, Divisional Mechanical Engineer, Civil Engineering
Department staff, Depot Managers, Training Managers, MIS Staff, Drivers, Conductors and
Regional Workshop Staff- Assistant Works Superintendent (AWS)/ Helpers (A &B). In addition,
information should be collection using semi-structured interviews from Transport Secretariat,
Commissioner for Transport and Road safety, Deputy Secretary to Transport and Corporation
Board Chairman.

Passengers

Sampling of Public and Private Passengers is presented in Table 2. Data should be

collected using a pre-tested structured questionnaire from public and private bus commuters from
each of the 36 depots (area of operation) covering rural and urban routes, night services and

Page 10 of 22
luxury services. Therefore, the questionnaire to be canvassed with 1440 public and 180 private
commuters, totalling to 1620 commuters.

Table 2: Sampling of Public and Private Passengers

Operation atea of Public Private transport

Corporation operators
KSRTC 18 * 40 (10 each from rural and urban 3-local State + 3-
routes night services and luxury services) National* 15:90
:720
NWKRTC 9 * 40:360 3*15:45
NEKRTC 9* 40:360 3*15:45
Total 1440 180
Grand total 1620

Focussed Group Discussions (F''GDs): FGDs with a group of sample officials at various levels
in the corporation, passengers, and policy makers. It should have representation across levels and
functions. FGD participants should be (a) homogeneous group and (b) heterogeneous group
across verticals and levels, to capture perception differences, to enrich the outcome of the
exercise and add value to the study. A minimum of 54 FGDs to be carried with the composition
given in Table 3.

Table 3: Sampling of FGDs

SI
Type Composition No of FGDs
no
Depot Managers * Mechanical
12
Depots Ensineers + Civil Ensineers
I
(1 Depot/Division) Bus Driverst Conductors *
12
Helpers/maintenance
Division
Divisional Controller + Divisional
2 (1/Division) t2
Traffic Officer + Depot Manager
Boards a
J Off,rcials J
(1/Board)
Passengers Passengers using RTCs -| Private
4 12 +3
(1 Depot/Division) transport
Grand total 54

5.1 Analytical techniques

Primary and secondary data collected should be analysed using qualitative and
quantitative analytical techniques such as

. descriptive statistics (measures of central tendency & dispersion),

. scaling, correlation, regression (quantitative & qualitative),
o manog€rial, operational and financial ratios,
o SWOT,
o customer satisfaction index,

Page Lt of 22
 a financial sustainability index, and cost-benefit,
a sensitivity, productivity and efficiency {Estimation of output - input specific
effi ciencies ) analysis.

Comparative analysis of the three corporations.

Note that Consultants ore encouraged to propose robust sampling criteria, analytical tools
and techniques or improvements to the suggested methodology to realise the larger goals of the
study. Any minor change by Consultant to the suggested methodology should be duly approved
by KEA on or before the approval of the inception report.

6. Deliverables and time schedule

The concerned department implementing the scheme and KEA will provide the necessary
information pertaining to the study and co-operate with the consultant organization in completing
the assignment task within the stipulated time. It is expected to complete the present study in 6
months' timeline, excluding the time taken for approvals at KEA. The exercise is expected to be
completed in an elapsed time of six calendar months from date of agreement.

I. Inception Report in four weeks from commencement on basic understanding of the

problem, key issues identified, directions for subsequent stages, detailed work plan,
meetings / FGDs planned including names / designations of personnel and schedules,
impediments if any to realise the work plan. Inception report is a road map of how the
Evaluation Consultant Organization (ECO) intends to proceed with the evaluation work
in terms of ToR. It is a road map and action plan for conducting the study, evolved through
the study team effort, based on the basic framework provided by the ToR and bring in the
study team insights and contributions. It shall be structured into different chapters and
headings and contain
(1) Evaluation title and background information in brief;
(2) Review of Literature
(3) Theory of Change/ output outcome framework - input-activities output-outcome-
impact
(4) Evaluation criteria and framework: purpose, scope, Objectives.
(5) Evaluation approach (with-without; before-after), stakeholders involved sampling
and limitations, Evaluation ethics -ECO must obtain aconsentof thestakehotdersbeforedata
collection (As per UNEG Guidelines)
(6) Evaluation Framework- Evaluation criteria - relevance, effectiveness, efficiency,
impact and sustainability and Evaluation matrix*x*: It sets out the conceptual
framework to be used in an evaluation, Main evaluation issues, Key evaluation
question, Sub-question, Indicator(s), Normative/baseline value, Success threshold,
Data sources, Data collection method, Method of data analysis***.
***Note: the evaluation matrix is a six-column table consolidation of the material at Sl. No. 4 to
[Link] criteria at Column 1 added for clarity and follows the REESI format as under. The
table is illustrative and not exhaustive.

Page L2 of 22
 Specific sub Data Analytical
Key Indicators /
questions## collection
Evaluation Evaluation success Data Method /
for each Key methods /
criteria Question## standards/ sources Analysis
Question Analytical
KPI method
tools#

(l) (2) (3) (4) (5) (6)

Relevance

Key
Evaluation
Question###
Organisation
objectives & Key
Actual Evaluation
requirements Questlon"""

Key
Evaluation
Questron"""
Effectiveness
Key
Evaluation
Inputs & Process Question###
of implementation Key
Evaluation
Questlon"""
Efficiency
Cost benefit Key
analysis Evaluation
Question###
Fund utilization Key
and capacity Evaluation
building Question###

Output produced I(ey

Evaluation
Question###
Imnac'
Outcomes- Key
immediate Evaluation
Questlon"""
Outcomes- Short Key
term Evaluation
Ouestion###
C)utcomes- Key
Medium tenn Evaluation
Question###
Outcomes--Long Key
Term Evaluation
Question###
Sustainability
Sustainability of Key
the project in the Evaluation
long run Question###

Page 13 of 22
 # Specific tool and subsection to be referred to / connected
oo
K.y Evaluation Questions and sub questions to be derived from the objectives of evaluation
in ToR and from pilot study insights
###
There will and can be many key evaluation questions for each evaluation issue and many
sub questions for each key evaluation question. These need to be framed by the study team
in question format.
(7) Data Analysis Techniques- All statistical and Mathematical techniques to be used in
data analysis

(8) Table templates and chapter outline

(9) field observations from pilot survey

(10) Work Plan
(11) Study Team with their contribution details

(12) List of persons conducting the FGD along with their qualifications and
(13) Training schedule of field enumerators with the details of trainers.

Appendix

o Questionnaire & Interview Schedules for all stake holders

o Check list for FGD

o List of field Investigators

Evaluation ethics -Evaluation Consultants will be held to the highest ethical standards and are
required to sign a code of conduct upon acceptance of the assignment. To be included in MoU.

Timeline for inception report

Briefing of the evaluation team,

preliminary PPT presentation to KEA Details of the secondary data
required for the study as
Within one week of issue
on study methodology proposed by of work order
perceived to be provided
team with data requirernents

Field investigation to prepare

One week from
Pilot study completion preliminary meeting with
and fine tune Inception Report
KJ,A
Submission of detail Pilot study report 4 days from submission of
Approvalof KEA
to KEA report
Finalization of study tools Incorporating all changes l week
Subrnission of IR to KEA
Approval of KEA for
2 days after submission
presentation
Presentation of IR before KEA As per time schedule in KEA - One week
Submission of revised Inception Report
Incorporating the suggestions 2 days from PPT
ofKEA presentation
Presentation of revised PPT Within 4 days of
{if necessarv} submission of revised IR

Page L4 of 22
II. Interim Report, on findings from officers and field respondents and FGDs (covering at
least 50% of planned meets and FGDs) at the end of eight weeks, after the inception repoft,
followed by presentation of Interim Report

Interim report should mainly include the progress and initial findings of the evaluation
study.

(1) Evaluation title and background information.

(2) Log Frame/Theory of Change/Program Theory as observed in the field.
(3) Redesigned evaluation framework: purpose, scope, stakeholders involved, input-
output-outcome-impact
(4) Analysis of secondary data and findings.

(5) Primary data -

analysis and Findings based on the 50%o of the field work, table
templates and chapter outline for the report; and

(6) Analysis of case studies and Focus Group Discussions.

a) Draft Report covering all items in the ToR including key issues identified, directions
for the future (vision, mission, organisational objectives, organisational form
including any that are external to the parent, working / reporting modalities, objectives
of all entities, performance criteria ...) within eight weeks from submission of Interim
Repoft.

b) Final Report within four weeks of approval of Draft Reporl by Technical Committee.
Timelines and deliverables
Inception Report 1 month after signing the agreement
Interim Report 2 months after the date of approval of Inception report
Draft reporl submission 2 months after Interim Report
Final report 1 Month after approval of the Draft reporl
Total duration 6 Months

7. Quality expected from the Evaluation Report

Following are the points, only inclusive and not exhaustive, which need to be mandatorily
followed in the preparation of evaluation report:

The evaluation report should generally conform to the United Nations Evaluation
Guidelines (UNEG) "Standards for Evaluation in the UN System" and "Ethical Standards
of Evaluations".

a) The results should correspond to the ToR objectives.

b) Regarding recommendations, the number of recommendations is no measure of the
quality of evaluation. Evaluation should be done with a purpose to be practicable to
implement the recommendations. The practicable recommendations should not be
lost in the populationmaze of general recommendations

Page LS of 22
 c) The report should be complete and logic ally organized in a clear but simple language.
Evaluation report should conform to standard report writing style and structure.
Harvard report writing and referencing standard to be adopted.

8. Structure ofthe report

The following are the points, only inclusive and not exhaustive, which need to be mandatorily
followed in the preparation of evaluation report. The report should be complete and logically
organized in a clear but simple language. Besides conforming to the qualities covered in the
Terms of Reference, report should be amanged in the following order:

o Title and Opening Page

. Index (Table of Contents)
o List of acronyms and abbreviations
o Executive Summary- A standalone section that describes the
program/organisation and its objectives, pu{pose, scope and objectives of
evaluation, methodology, key findings, and recommendations.

1. Background- A section that briefly covers the scenario of the program/ organisation in
the State including rationale and importance, physical and financial analysis, scope and
objectives of evaluation, outline of the report.
2. Review of literature- objective/Issue based from reports, journals, etc.
3. Evaluation Methodology - research design, Log-frame and Evaluation Matrix, Data
collection (tools and techniques) and analysis (analytical techniques), limitations of the
evaluation study.
4. Results and Discussion- objective/issue based and discussion of results to be also drawn
from literature, FGDs and case studies
5. Findings- to be arranged as per the objectives/issues
6. Recommendations - to be arranged as per the objectives/issues

Annexures
a. Sanctioned Terms of Reference of the study.
b. SurveyQuestionnaires
c. List of persons with addresses personally interviewed.
d. Place, date and number of persons covered by Focus Group Discussion
e. Compilation of case studies/best practices (brief socio-economic background of the
sample unit, intervention, and outcome)
f. Table showing details of major deviations and non-conformities

9. Administrative arrangements
Introduction to KSRTC, NWRTC and NEKRTC and authorisation to carry out the tasks
and meet relevant personnel, facilitating access to stakeholders for meetings / FGDs. Timely
response to submissions and presentations by KEA.

Page tG of 22
;. Professional competencies expected to handle the assignment
sr. Subject
No. Experts Qualification Experience
Requirements
1 Principal PhD/Post Graduate Degree in 5 years ofrelevant evaluation
Investigator Economics/ experience (strategy, policy,
Commerce/Management/ Public government,) as team leader
policy
2. 1tt Core team Post Graduate degree in Finance 3 years ofexperience in
member and Accountingl commerce/ MBA or ganizational ev aluati on
Economics/ Chattered Accountant
J. 2nd Core team Postgraduate in Statistics/ Knowledge of organrzation and
member Economics/ MCA functional divisions and
familiar with govemment
accounting systems {Finance /
accountins)
4 3'd Core Team Degree in Mechanical engineering/ Experience in impact
Member Transport Engineering evaluation of developmental
Drograms

[Link] and Schedule of Budget Releases

The Output based budget release will be as specified in the RFP.

[Link] person for the details of the study

The Contact person details about the study is as below-
At KBA:
(i) Dr. Chaya Degaonkar, Additional Chief Evaluation Officer, 9342331301
(ii) [Link], Director (Evaluation), 9448402848
At RTCs:

(i) KSRTC: Ms. Veena Desai, Chief Planning and Statistical Officer, M-7760990170
(ii) NWKRTC: Mr Patil (M:7760991534); Mr Jaishankar Shetty (M:7760991519)
(iii) NEKRTC: Mr. Shivappa (M 7760992046)
TOR Prepared by:

Dr. M. R. Sangeetha
8a
Dr. A.V. Manjunatha
il)
Research Fellow Director (Evaluation)
Karnataka Evaluation Authority Karnataka Evaluation Authority

Under the Guidance of:

L\oo1c"\c'"'/--
Dr. Chaya Degaonkar
.\C\}r
G A, uts
Additional Chief Evaluation Officer Chief Evaluation Officer
Karnataka Evaluation Authority Karnataka Evaluation Authority

PageLT of22
Appendices
ix Table 1: Onerational lndicatc ,rs of KSRTC
[Link]. Particulars 2017- 2018-19 2018-19 2019-20 7o Variation
18 (up to (up to (4 compared
FY F'Y 30-l I - 30-1 1- to 3)
20r8) 2019)
I 2 3 4 5
I No. of buses at the end of the period 8784 869-5 8713 8-535 -2.0
2. %o of over aged buses (7.50 lakh Kms) 33.4 31.5 28.8 42.5
3. Routes operated at the end of the year 571 4 5495 6 t06 5495 - 10.0
(No.)
4, Route length at the end ofthe year (in 96.8 95.82 96.8 18.4 - 19.01
lakhs)
5. Avg. Eff. Kms operated/ day (in lakhs) 28.73 29.04 28.86 29.26 t.4
6. Avg. passengers carried / day (in lakhs) 29.68 30.t2 28.89 29.65 ./-.o
7. Avg. number of buses held 8s63.4 8178.t 8164.5 8611.4 1.7
8. Avg. number of buses on road 19 t 5.2 7915.1 8030. I 8016.4 -0.2
9. % of Fleet utilisation 92.6 92.1 91.6 93.0
10. Avg. Vehicle Utilisation (in Kms.) 363 361 360 365 1.4
t1 Total Traffic receipts (Rs. In Crores) 3488.2 3724.35 2t82.47 2312.7 t 6.0
9
2. Avg. Seating capacity 50.7 52.9 5 1.5 5t.4
J. Yo ofLoad Factor 69.9 71 .4 71.8 77.4
4. Bus Staff Ratio 4.69 4.70 4.66 4.77 a1

15. Total vehicles (including scrapped 982s 9114 93 83 8839 --5.8

vehicles held)
Source: Economic Survey of Karnataka2019-20

able zi
Appendixx Table 2: l{tnanc a Indicators
Financial icators of KSRTC (Rs. in crore
sr. Particulars 2017-18 201 8-r 9 2018-19 2019-20 7o Variation
No (up to (up to (4 compared
30-1 r -201 8) 30-1 1-2019) to 3)
1 1 3 4 5
I Total Receipts 3488.29 3724.35 2364.34 2.500.09 5.7
2. Total Expenses (Excl.
Taxes)
a) Operating Expenses
b) Non- Operating 3238.29 3597.16 2386.42 2456.855 3.0
expenses 18.61 86.17 54.49 58.41 1.2
3. Profit before taxes
4. Total Taxes
a) Passenger tax
b) Motor vehicle & 166.83 l7-5.35 I t6.27 t22.22 5.t
other taxes
5. Total expenses 3483.19 3 859.28 2557.18 2637.48 3.1
6. Net profit/ loss 4.50 134.93 192.84 137.40
7. Prior period adjustment
(profit / loss)
8. Total profit i loss 4.50 t34.93 t92.84 t37.40
Source: Economic Survey of Karnataka2019-20

Page tB of 22
Appendix Table 3: Operational lndicators of NWKRTC
[Link]. Particulars 2017- 20r 8-r I 2018-l 9 2019-20 %o Variation
18 (up to 30- (up to (4 compared
1 1-2018) 30-1 1- to 3)
2019)
I 1 3 4 5
I No. of buses at the end of the period 5048 5013 4886 4899 0.3
2. 7o of over aged buses (7.50 lakh Kms) 34.4% 44.8% 40.6% 49.1%
Routes operated at the end of the year 4126 4067 4095 4031 1.6
(No.)
4. Route length at the end of the year (in 3.68 3.62 3.80 3.s8 -5.8
lakhs)
5. Avg. Eff. Kms operated/ day (in lakhs) 16.56 16.14 16.18 15.82 aa

6. Avg. passengers carried / day (in lakhs) 22.s0 22.46 22.4s 22.46 0.0
7. Avg. number of buses held 4999.8 4990.1 5002.5 4940.9 1.2
8. Avg. number ofbuses on road 47 57 .7 4710.6 4737.4 4579.5 -J.J
9. % of Fleet utilisation 9s.2% 94/% 94.7% 92,7%
10. Avg. Vehicle Utilisation (in Kms.) 348 343 347 345 -0.6
11 Total Traffic receipts (Rs. in Crores) 1589.5 1664.98 1120.41 1138.02 1.6
9
.)
Avg. Seating capacity 51,4 51.5 s 1.0 51.3 1.6
o/o
3. of Load Factor 60.80A 65.2% 66.1% 68.3%
4. Bus Staff Ratio 4.70 4.72 4.76 4.73
15. Total vehicles (including scrapped 5618 5285 5142 5076 t.3
vehicles held)
Source: Economic Survey of Karnataka2019-20

Tahl 4: Financ al lnclicators of NWKITTC (Rs. in crore

dix Table
Appendix
st. Particulars 2017-18 20r8-19 201 8-1 9 2019-20 7o Variation
No (up to 30- (up to 30- (4 compared to 3)
l 1-2018) tt-2019)
1 2 3 4 5
I Total Receipts 1884.45 2021.60 t25t 18 1358.t2 8.5
') Total Expenses (Excl.
Taxes)
a) Operating Expenses 1845.84 1998.41 1348.99 1367.69 1.4
b) Non- Operating 33.78 37.43 24.26 35.04 44.4
expenses
Profit before taxes 4.83 -8.30 -122.07 -44.61
4. Total Taxes
a) Passenger tax 0.00 0.00 0.00 0.00
b) Motor vehicle & 76.80 80.77 s8.1 9 60.47 3.9
other taxes
5. Total expenses 1956.42 2116.67 1431.44 1463.20 2.2
6. Net profit/ loss -71 .97 -89.07 180.26 I 05.08
7. Prior period adjustment
(profit / loss)
8. Total profit / loss -71.97 -89.07 180.26 I 0s.08
Source: Economic Survey of Karnataka 20 19 -20

Page 19 of 22
Appendix Tatrle 5: Operational lndicators of NEKIITC
st. Particulars 2016- 2017- 2017-18 2018-19 2019- o/
/o
No: t7 18 (up to30- (up to 20 Variation
1t-2017) 30-11- (up to (s
2018) 30-1 1- compared
2019) to 4)
I 2 3 4 5 6
I Routes operated at the end ofthe year 3948 4159 3948 3973 4030 1.4
(].,1o.)
2. Route length at the end of the year (in 3.93 3.98 3.96 3.87 3.94 1.8
lakhs)
3. Avg. Eff. Kms operated/ day (in lakhs) 13.30 13.83 13.69 14.05 14.17 0.9
4. Avg. passengers carried / day (in lakhs) 13.50 13.52 13.52 13.55 13.55 0
5. Avg. number of buses held per day 4384. 4501 446s.4 4746.3 4747.4 0.02
8 I
6. Avg. number ofbuses on road per day 3969. 4071 4036.s 4112.0 4134.9 0.6
0 4
7. % of Fleet utilisation 90.5 90.5 90.4 86.6 87. I 0.6
8. Avg. Vehicle Utilisation (in Kms.) 33s 340 339 342 343 0.3
9. Total Traffic receipts (Rs. in Crores) t324. 1415. 949.17 1022.60 106 l .5 3.8
71 50 9
10. Avg. Seating capacity 50.6 51.1 51.0 51.3 50.1 -1.2
il o%
of Load Factor 64.1 65.8 64.1 69.6 72.1 3.6
12. Bus Staff Ratio 4.94 4.67 4.79 4.74 4.81 1.4
13. Total vehicles (including scrapped 4819 553 8 4999 5218 4867 -6.1
vehicles held)
Source: Economic Survey of Karnataka 20 19 -20

norx Table
Appendix 0: Financial
I ahle 6: tr tnan al Indicators of NEKRTC (Rs. i n cr0re
sr. Particulars 2016-17 2017-18 2017-18 2018-19 2019- 7o Variation (5
No (up to (up to 20 compared to 4)
30-r 1- 30-l r- (up to
2017) 20r 8) 30-l l-
2019)
I ) 3 4 5 6
I Total Receipts 15t9.42 1635.45 1028.50 ttt2.54 1191 .66 7.7
2. Total Expenses (Excl. 1504.44 1594.62 1037.01 1183.97 1235.26 4.3
Taxes)
a) Operating Expenses t127.97 1 189.90 776.69 923,39 947.63 2.6
b) Non- Operating 376.47 404.72 260.32 260.58 287.63 r0.3
expenses
Profit before taxes 14.98 40.83 -8.s 1 -11.43 -37.60 -47.4
4. Total Taxes 69.44 74.13 49.62 52.24 s4.68 4.7
a) Passenger tax 0.00 0.00 0.00 0.00 0.00 0.00
b) Motor vehicle & 69,44 74.13 49.62 52.24 54.68 4.7
other taxes

5. Total expenses I 573.88 1668.75 1086.63 1236.21 t289.94 4.3

6. Net profit/ loss -s4.46 -33.30 -58.1 3 -123.67 -92.29 -25.4
7. Prior peliod adjustment 0.00 0.00 0.00 0.00 0.00 0.00
(profit / loss)
8. Total profit / loss -54.46 -33.30 -58.13 -123,67 -92.29 -25.4
Source: Economic Survey of Karnataka 201 9 -20

Page 20 of 22
Appendix Table 7: Indicators of effectiveness, efficiency, relevance and financial viability
Effectiveness Efficiency
Achievement of obj ectives/goals Cost per service
Number of passengers served Overhead to total service
Quality of service Output per staff
Access to seruice and usage Cost per passenger served
Knowledge generation and its utilisation Staff absenteeism and turnover rates
Demand for services Frequency of system breakdowns
Growth indicators like coverage, services, revenues Timeliness of delivery of services
Relevance Financial viability
Stakeholders satisfaction Changes oveftime to net operating capital
Number of services Ratio of revenues to costs
Role changes Ratio of current assets to current liabilities
Changes n revenues Ratio of total assets to total liabilities
Changes in reputation among corporations Growth indicators in terms of sources of
revenues, assets, capital and revenues
Acceptance of the service by stakeholders Level of divers fication of sources of revenues
Budget earmarked for professional development Frequency of h ring to provide services
Changes in corporation innovation and adaptability
Changes in corporation reputation among key
stakeholders
Changes in services and programs related to
changing passengers

Appendix Table 8: Operational indicators and formulas

SN. Operational Formula
Indicators
I Vehicle Utilization Effective kms operated per day
VU: Average number ofbuses on road

2 Fleet utilization by No ofbuses on Road by bus type

FU=
bus type No ofbuses held by bus type

a total dead kms by bus type

J Percentage dead o/oDK
= Total effective kms
kilometre by bus by bus type
type
4 Kilometre per litre/ fuel cost per tank
KMPL =
fuel economy by bus kilometres driven
tvpe
5 Occupancy ratio Passenger Kms
OR=
Seat Kilometre offered

6 Load factor by bus Passenger Kms

LF: Seat or capacity Km
* 100
type

7 Passenger kilometres total passenger kilometre

PFH = total number of buses held by the corporation
per fleet held

Page 21. of 22
 Passengers carried Passengers carried per day
8
Passengers carried per bus on road per day :
per bus on road per No. of Buses on Road
day
9 Passenger Lead Total passenger kms. occupied
Passenger lead :
Total No. ofpassengers carried

10 Breakdown Rate per Total No. of breakdowns

Break down rate : * 10000
10,000 kilometres Total Effective kms.

11 Accident rate per Total No. of accidents

Accident Rate = * 100000
Total Effective kms.

12 Punctuality in Total [Link] scheduled trips actually departed - All late departures
PA= * 100
Arrivals

Appendix Table 9: Financial indicators and formulas

SN. Financial Indicators Formula
't' ot aL cost
1 Cost per kilometre by bus type CPk = x 700 paise
Total ef f ective [Link]

2 Cost per seat kilometre Total cost

CPk = seat [Link] ered * 100 paise
f
1
J Cost per Bus held and on cost per bus held and. on roacl per [Link] =
Total cost per day
Avergae number of buses on road during year
a
Road per day
4 Cost per passenger kilometre I o taL cost
CPPk = * 700 [Link]
T otal pass eng er Kilometre

5 Operating Expense Ratio Operating Expense Ratio =

Operating Expenses - (interest * tax)
Gross revenue

6 Revenue Turnover Ratio Gross revenue

RTR
Cqpital employed

7 Earnings per Bus held total earningsper day

LF: [Link] buses held

Earnings per Bus Total Earnings per day

8 EBR :
Road no. of buses onroad

9 Earnings per Kilometre EPKM =

Traffic receipts
by bus type Effective Km
IEPKM]
10 Earnings per seat kilometre EPKM : TotaLreuenue receipts
offered by bus type Total seat kilometre offered

Passenger per day by bus type LF

11 PPD : number of trips in a day * avergae seattng capacity
7oo*

12 Earnings per effective EPK =

Gross revenue

kilometre ef f ective kilometre operated

PageZ? of 22