Maharashtra News: 'MSRTC Faces ₹10,322 Crore Loss, Will Be In Profit In 4 Years,' Says Minister Pratap Sarnaik

Transport Minister and MSRTC Chairman Pratap Sarnaik assured on Monday that the Maharashtra State Road Transport Corporation (MSRTC), which has been grappling with financial distress for decades, will be brought into profit within the next four years.

Sarnaik stated that the state-run transport corporation commonly known as the "lifeline of Maharashtra" has registered profits in only eight of the last 45 years. Despite this, MSRTC continues to play a critical role in the daily lives of citizens, transporting over 55 lakh passengers across the state every day and serving nearly 90% of Maharashtra’s geographical area. According to Sairnaik, the corporation was profitable for eight years
(1987-88, 1990-91, 1994-95, 1995-96, 2006-07, 2007-08, 2008-09 and 2009-10) in four years out of eight years, the state's current principal secretary for finance, O P Gupta, was the MSRTC's vice chairman and managing director.

As part of a renewed commitment to transparency and reform, MSRTC released a White Paper detailing its financial crisis, along with strategic plans to boost revenue and reduce expenditure. According to the White Paper, MSRTC’s accumulated losses stood at Rs 4,600 crore in 2018–19. However, the dual impact of the COVID-19 pandemic and a prolonged employee strike pushed the losses to over Rs 10,322 crore. Of this, nearly Rs 3,000 crore is owed to employees in the form of pending salaries and other benefits.

"Government support through grants is critical," Sarnaik said. "As the Transport Minister, I will ensure continuous and active follow-up with the state government to stabilize MSRTC's financial condition. But this effort must be complemented by internal reforms as well. MSRTC officers and staff must shoulder their responsibilities, improve productivity, and eliminate unnecessary expenditures to ease the financial burden."

Sarnaik also announced special measures to enhance transport accessibility for Maharashtra’s tribal populations. Recognizing the difficulty of operating standard 11-meter and 12-meter buses in remote, hilly terrain, MSRTC plans to deploy 50 mini-buses specifically designed for such regions.

“Even though these services may not be financially viable, we are committed to absorbing the operational losses,” Sarnaik stated. “Transportation is a basic right, and we will ensure that our tribal brothers and sisters are not left behind.”

The proposed changes are part of a larger restructuring and modernisation plan that includes the procurement of new buses, rationalization of routes, digitization of operations, and potential public-private partnerships to strengthen the fleet and services.

"With a clear roadmap laid out in the White Paper, the next four years could be transformative for MSRTC—a corporation long burdened by losses but vital to Maharashtra’s social and economic connectivity," said an official.