Factors Affecting Financial Performance of State Transport Undertakings (STUs) in India

Buses cater to nearly 20% of travel demand in major Indian cities. The majority of the bus transport system in India is operated by state transport undertakings (STUs). However, despite a high proportion of transit-dependent passengers, city bus services operated by STUs in India have seen a decline in revenue. For Indian cities to meet their mobility needs efficiently, improving the performance and maintaining the services of public buses are essential. This study examines the performance of STUs in India and examines the factors affecting the financial performance of STUs in India. The present study applied hierarchical cluster analysis and K-mean cluster analysis in order to classify the STUs based on their performance and identify physical performance parameters affecting the financial status of STUs in India. An ANOVA test tested the validity of the results obtained through cluster analysis. Based on results obtained from cluster analysis, it was determined that the average age of buses and passenger occupancy were the two most significant factors affecting the financial performance of STUs in India.