CHAPTER 10
DEPARTMENT OF SPACE

10.1    Avoidable expenditure on hiring of buses

Space Application Centre, Ahmedabad incurred avoidable expenditure of Rs 50.15 lakh due to hiring of buses from AMTS when it had its own fleet.

The Space Application Centre (SAC), Ahmedabad a constituent unit of Department of Space (DOS) operated 16 bus routes for the benefit of its employees prior to January 1998. Of the 16 routes, 10 were operated with its own fleet and the remaining six were operated by hiring Ahmedabad Municipal Transport Service (AMTS) buses. Consequent on the introduction of transport allowance with effect from August 1997, the employees were asked to give their options either to draw the allowance or to avail of the free transport facility. Subsequently, SAC decided in January 1998 to operate only eight routes. Even though SAC had 12 buses and Heavy Vehicle Drivers (HVDs) to operate these buses, the Centre continued to operate two/three routes with buses hired from AMTS. SAC paid Rs 60.80 lakh to AMTS for the buses hired during the period February 1998 to July 2001. Had the Centre operated its own fleet, the operational expenses on running buses on these routes would have been Rs 10.65 lakh during the above period. Thus, avoidable expenditure of Rs 50.15 lakh had been incurred by hiring buses from AMTS.

SAC stated in July 2001 that the number of HVDs available for general pool operation was 14 of whom two were chronically ill. It was also stated that, six vehicles were more than 20 years old. However, they could not be condemned as the vehicles did not meet the norms of having run four lakh kms. The department further justified the hiring of AMTS buses on the ground that Ahmedabad city being prone to riots, it decided to use the service of AMTS also to avoid damages of Government vehicle in the event of a riot.

However, prior to January 1998, SAC operated 10 routes with its own fleet. The present reply of the department that some vehicles were more than 20 years old and that the city was prone to riots was not convincing.

Thus, the continued hiring of AMTS buses from February 1998 when the centre had adequate buses and drivers for general pool operation resulted in avoidable expenditure of Rs 50.15 lakh.

Audit reported the matter to the Department in November 2001, who have not replied as of December 2001.