Maharashtra News: MSRTC Faces Financial Crisis As Govt Allocates Only ₹350 Crore Against ₹993.76 Crore Requirement, Says Union Leader

Mumbai: The Maharashtra State Road Transport Corporation (MSRTC) receives a monthly reimbursement from the government to cover concessions and pay employees' salaries. However, the allocated amount has been insufficient for several months, resulting in pending dues such as Provident Fund (PF), gratuity, bank loans, and other obligations. Employees are currently receiving only their net salaries, alleged Shreerang Barge, workers' union leader.

According to Barge, this month, the government allocated only Rs 350 crore, far below the required Rs 993.76 crore. As a result, many pending dues will remain unpaid, causing distress among employees. Shreerang Barge criticized the government for neglecting and mocking MSRTC employees.

By the end of December 2024, MSRTC had accumulated pending dues of approximately Rs 3,260 crore. Despite requesting Rs 993.76 crore to meet expenses, only Rs 350 crore was sanctioned for this month. Barge called this decision unfortunate and accused the government of violating the affidavit submitted in the High Court.

During the MSRTC strike, the state government had assured the court that it would provide necessary funds to sustain operations. However, Barge claims that this promise has been broken. He alleged that the government has deceived both MSRTC employees and passengers by announcing concessions without providing full reimbursement.

The estimated cost of these concessions is Rs 360-380 crore per month. Previously, the government allocated around Rs 300 crore per month, but this has been increased to only Rs 350 crore for the past two months. Barge accused the government of misleading MSRTC employees and passengers through such tactics.

He criticized the finance department for delaying MSRTC's funds and disregarding its funding requests. Barge urged Maharashtra's Transport Minister, Pratap Sarnaik, to take immediate action by holding a joint meeting with MSRTC and the finance department of state government to resolve the issue.