Maharashtra govt to add 8,300 new buses to revive MSRTC and cut losses

Mumbai: The state govt on Feb 19 announced that MSRTC will procure 8,300 buses in its fleet this year to address an acute shortage that has affected services across routes.MSRTC caters to over 50 lakh commuters daily across Maharashtra.
An official from the bus corporation told TOI that the MSRTC has been under sustained financial stress and is currently losing Rs 1 to 1.5 crore every day.The MSRTC fleet and ridership have not returned to pre-pandemic levels. Before Covid-19, the corporation operated around 18,000 to 19,000 buses and carried nearly 66 lakh passengers daily. Bus procurement slowed over the last four to five years amid the pandemic and prolonged employee strikes, and by the end of 2024 the fleet had fallen to about 12,600 buses, leaving many routes with insufficient trips.Under MSRTC's long-term policy, the corporation plans to purchase 20,000 to 25,000 buses over the next few years. The govt has given in-principle approval, with 8,300 buses slated to join in the first phase this year.The first phase includes 3,000 high-capacity buses with a 3x2 seating layout and 55 seats, to be inducted in phases from March. Named after Rajmata Jijau Saheb, these buses will be deployed on heavily crowded intercity routes. The plan also covers 5,000 regular buses, with the tender process in its final stage, 100 midi buses intended to extend connectivity to remote and tribal areas, and 200 ultra-modern buses aimed at competing with private operators. After induction, MSRTC is targeting 70 to 75 lakh passengers daily in future.Passenger numbers had increased significantly last year after govt introduced a 50% fare concession for women and free travel for senior citizens above 75 years. The bus corporation now carries about 50 lakh passengers daily, but officials acknowledge that demand outstrips supply on several corridors.When contacted, state transport minister Pratap Sarnaik said, "If buses increase, passengers will increase, and if passengers increase, revenue will automatically grow." He said that that higher capacity will translate into stronger earnings and improved reliability.MSRTC's daily expenditure is estimated at Rs 35 crore, while revenue is around Rs 33 crore. Sarnaik said MSRTC is a public lifeline rather than a profit-driven enterprise, but added that balancing costs and income is essential to minimise losses."The overnight rural bus services, better access to tribal hamlets and additional buses on crowded routes will strengthen operations and curtail losses for the corporation by year-end," a senior official added.