ASTC Worst Performing Public Service Body In Assam, CAG Report Exposes Shocking Inefficiencies

GUWAHATI: In a damning revelation, the Comptroller and Auditor General (CAG) of India has exposed severe financial mismanagement, operational inefficiencies, and blatant disregard for public funds by the Assam State Transport Corporation (ASTC). The latest audit findings, covering the financial years 2017-18 to 2021-22, paint a bleak picture of ASTC’s performance, establishing it as the worst-performing public service body in Assam.

ALSO READ: Assam Panchayat Elections To Take Place On May 2 And 7; Check Details

Massive Financial Losses and Unsustainable Operations

The CAG report underscores ASTC’s staggering financial losses, with the entity incurring consistent operational deficits. The corporation’s total accumulated losses have skyrocketed over the years, significantly outpacing its revenue generation. A key highlight of the audit states that ASTC's expenditure on salaries and operational costs far exceeds its revenue from passenger services, making the organization financially unsustainable.

Despite receiving substantial government grants and subsidies, ASTC has failed to improve its financial standing. The report indicates that mismanagement of funds and a lack of a coherent financial strategy have exacerbated the crisis.

Failure in Fleet Management and Service Delivery

ASTC’s core function—providing efficient and reliable transport services—has been severely compromised due to poor fleet management. The audit found that a significant number of ASTC buses remain non-operational due to inadequate maintenance and repair facilities. Shockingly, a large percentage of the fleet is outdated, with many buses running beyond their recommended lifespan, increasing maintenance costs and decreasing passenger safety.

The report also exposes the underutilization of resources, where a significant portion of ASTC’s bus depots and workshops remain non-functional or inefficiently managed, further hampering service delivery.

Corruption and Mismanagement

The CAG audit brings to light multiple instances of financial irregularities, including inflated procurement costs, improper contract allocations, and failure to adhere to transparency norms. The lack of accountability has enabled rampant corruption, leading to increased operational expenses without corresponding improvements in service quality.

Furthermore, the report highlights non-compliance with government-mandated performance improvement measures, indicating that ASTC has failed to implement necessary reforms despite repeated warnings and intervention attempts.

Declining Passenger Trust and Public Backlash

Once a crucial pillar of Assam’s public transport system, ASTC is now struggling with dwindling passenger numbers. The unreliability of services, frequent breakdowns, and lack of punctuality have driven commuters to seek alternative modes of transportation, further exacerbating ASTC’s financial woes.

The report warns that unless drastic remedial measures are undertaken, ASTC’s continued inefficiency could lead to complete operational failure, forcing the government to bear an even greater financial burden.

Recommendations and Government Response

The CAG has recommended a series of corrective measures, including overhauling fleet management practices, improving financial discipline, increasing transparency, and adopting modern technology to enhance efficiency. The Assam government has acknowledged the findings and assured corrective actions, but public skepticism remains high given ASTC’s history of failed reform attempts.

As ASTC grapples with its worst-ever performance crisis, stakeholders are calling for urgent intervention to salvage Assam’s public transportation system before it collapses completely.