In November 2024, the Maharashtra State Road Transport Corporation (MSRTC) achieved a milestone by recording a revenue of Rs 941 crore, driven by a surge in passenger traffic during the month.
According to an official, corporation, which operates one of the largest bus networks in the state, transported an impressive 60 lakh passengers on average daily, generating an average daily income of Rs 31.36 crore. This represents a significant increase of Rs 26 crore compared to the same period last year.
Dr. Madhav Kusekar, Vice Chairman and Managing Director of MSRTC, attributed the surge in revenue to the trust and loyalty the public has shown towards the state-run bus service. Notably, while MSRTC had implemented a 10% fare hike during last year’s in the November , no such fare increase was imposed this year, highlighting the growing passenger reliance on the service.
However, alongside this increase in revenue, MSRTC has also seen a rise in its operational expenses. “Factors such as higher fuel prices, salary hikes for employees, and increased costs of tires and spare parts have put significant pressure on the corporation’s finances. Additionally, the payment of Diwali bonuses to employees further added Rs 52 crore to the financial burden for November, pushing the corporation’s cumulative loss to an alarming Rsc11,000 crore ” said an official.
The corporation is also grappling with the issue of pending dues for increased salaries, which amount to several thousand crores. “In light of these financial challenges, MSRTC has submitted a proposal to the state government to implement a fare hike to address the widening gap between income and expenditure” he said.
MSRTC’s fleet currently operates around 14,000 buses, connecting over 4,400 villages with city areas and district headquarters across Maharashtra. Despite financial strains, the corporation is planning to expand its fleet, with a target of adding 3,500 new buses by 2025, aiming to improve service efficiency and cater to increasing passenger demand.
As the backbone of the state’s transportation system, MSRTC’s performance remains critical to millions of commuters across Maharashtra. “The planned fare hike, while necessary, is expected to face public scrutiny, particularly given the corporation’s ongoing financial difficulties and its reliance on government support” said another official.
