VEHICLE RUNNING COST- DEGREE OF ASSOCIATION WITH AGE OF THE VEHICLE: A STUDY IN A STATE ROAD TRANSPORT UNDERTAKING

After economic liberalization in India, the relevance of the competition has exponentially increased, driving the Public sector State Road Transport Undertakings(SRTUs) to accelerate their efficiency activities, to compete with co-existing private operators. More over the SRTUs needs to meet their requirement of funds towards Vehicle running costs ,vehicle replacement from their own resources. Hence Policies in operating , maintenance of passenger transport vehicles are necessarily guided by economic principles . The competition driving the SRTUs, to maintain their vehicles that are safe, reliable with more productive out put. The in-service failures are generally feared by bus operators. This normally contributes higher operational costs. It is well known that with the increase in age, maintenance costs increases on one hand and the vehicle productivity decreases and reliability also effects.. But at what degree , the associated vehicle running costs are influenced by the vehicle age in its life span is to be studied. This enables the vehicle operator to take decisions on vehicle replacement, Operation of vehicle, maintenance, repair practices etc., The above aspects are studied , taking a sample of 2107 passenger transport vehicles(Buses), constitutes 27% of its fleet, from Andhra Pradesh State Road Transport Corporation(APSRTC), which is the State public sector transport undertaking. The study with empirical data, results clearly revealed that the vehicle running costs , constituting Operating cost, maintenance cost, depreciation , Overheads and Miscellaneous Components, of a bus is significantly influenced by bus age, in spite of having professional preventive , bus maintenance systems are in place