Physical Performance of State Passenger Transport System: A Case Study of CSTC

State passenger transport everywhere runs on subsidy, its price (fare) being deliberately, kept lower than its cost of operation as transport is an intermediate good. The proper ulilisation of subsidy is reflected in an efficient performance of the enterprise. A case study of the Calcutta State Transport Corporation, however, shows otherwise. Cobb-Douglas Production Function and correlation and regression analysis of CSTC data reveal a significant relation between the output gross mileage and variable input HSD only, not others. The efficiency parameter is small. Batteries and buses are insignificantly related. All indicate a wastage of inputs, a defective Output policy and a lock of business attitude.