Ananlysis of productivity and efficiency in MSRTC

Abstract

Maharashtra State Road Transport Corporation (MSRTC) has been instrumental in providing access and connectivity across the entire state of Maharashtra. Over the last few years, due to a variety of factors, particularly competition from the private sector, MSRTC’s financial performance has shown a marked deterioration. After the financial turnaround of Karnataka State Road Corporation when it was split in to four smaller organizations, the same solution was suggested by many for large corporations like MSRTC. In this paper, we examine the issue of splitting MSRTC into smaller regions to find out whether it would actually help in its financial recovery. Also, we examine the possibility of improvement in financial profitability by means of enhanced input productivity.State Road Transport Corporations, Scale Economies, Technical Efficiency, Total Factor Productivity