Managing the financial crisis in Uttar Pradesh State Road Transport Corporation (With Special reference to Cost Management)

Road transport is the most preferred mode of transport among common mass. In India, State Road Transport Undertakings (SRTUs) are engaged in providing road transport facility to public. They run their services on the basis of business principles. Their practices are motivated to provide transport facilities to public with resultant profitability. But in recent years the SRTUs are suffering from huge amount of losses. The current study is focused on the Cost Management aspect of the SRTUs. The area of study selected is Uttar Pradesh. The study discusses about the cost management with special reference to Uttar Pradesh State Road Transport Corporation (UPSRTC). It discusses the various components of total cost and analyse its share in total cost. Further, the study suggests some valuable measures for improving the cost effectiveness of the Corporation. This paper is an important avenue available for the Corporation to improve their economic and financial viability which in turn enhance their profitability.