Mumbai: Chief Minister Devendra Fadnavis has put a halt to a controversial decision by the Maharashtra State Road Transport Corporation (MSRTC) to rent 1,310 buses, potentially leading to a financial loss of approximately Rs 2,000 crore.
The decision came under scrutiny for allegedly favouring contractors with inflated rates and could have resulted in a significant burden on the state-run corporation.
Reports indicate that the tender process for the bus rental agreement was carried out hastily before the implementation of the election code of conduct, bypassing the state government’s involvement. The process reportedly gained traction after Bharat Gogawale took charge as the chairman of MSRTC, raising concerns over the transparency and integrity of the deal.
The proposed rental rates of Rs34.30 and Rs35.40 per kilometre, excluding diesel costs, were found to be excessively high. In addition to the rental charges, diesel expenses, estimated at Rs20 to Rs22 per kilometre, would have further strained the corporation’s finances. Compared to previous tenders, the new deal was expected to increase operational costs by Rs12 per kilometre, further compounding the financial strain on the state corporation.
Fadnavis expressed his dissatisfaction with the handling of the tender process during a recent review meeting. He ordered an inquiry to investigate the matter and ensure accountability. Transportation Minister Pratap Sarnaik, who has been criticised for mismanagement, also faced scrutiny over the deal’s lack of proper oversight.
The controversy surrounding the bus rental agreement has sparked widespread debate, with many claiming that the deal was tilted in favour of certain contractors, potentially at the expense of public funds. As part of the newly-formed Mahayuti government, Fadnavis has taken a firm stance to ensure transparency and accountability in the operations of the Maharashtra State Road Transport Corporation.
