Mumbai: The Maharashtra State Road Transport Corporation (MSRTC) released a white paper on Monday, outlining decades of mounting losses and a roadmap for revival.
The report discloses that the state-run transporter has registered profits in only eight out of the last 45 financial years, while its cumulative losses have soared to Rs 10,324 crore by the end of 2023–24. An additional unaudited loss of Rs 1,217 crore has been reported for 2024–25, with an estimated loss of Rs 1,019.40 crore projected for the financial year 2025–26.
“The white paper aims to transparently present the corporation’s financial health to the public, government, employees, and stakeholders. It outlines upcoming policy decisions, cost-cutting strategies, and plans for improving revenue generation and passenger services,” said an official.
The document highlights that MSRTC has recorded profits in only eight of the past 45 years, while the remaining years have been marked by persistent losses.
According to an MSRTC spokesperson, several key measures have been proposed for the sustainable progress of the corporation, focusing on boosting revenue, reducing expenditure, and enhancing commuter safety and convenience.
“To increase revenue, the corporation plans to induct 5,000 new buses into its fleet every year. It also aims to include high-tech Volvo buses on a rental basis and establish retail fuel outlets for private vehicles on MSRTC-owned land through revenue-sharing partnerships with fuel suppliers. Additionally, MSRTC will develop its land assets on BOT (Build-Operate-Transfer) or PPP (Public-Private Partnership) models. Efforts will also be made to upgrade C-category routes to B-category and B-category routes to A-category. The corporation also plans to augment non-operational revenue, improve passenger amenities, and set clear targets to enhance earnings,” he said.
“On the expenditure side, cost-saving measures include the induction of 5,000 LNG-powered buses and 1,000 CNG-powered buses into the fleet. The implementation of an ERP (Enterprise Resource Planning) system is also planned to improve management efficiency, alongside setting cost-reduction benchmarks,” stated the white paper.
The corporation also plans to gradually introduce 5,300 electric buses and implement the National Common Mobility Card (NCMC) scheme for concessional passengers. Digital ticketing will be expanded through ETIM (Electronic Ticket Issuing Machines) and ORS (Online Reservation System).
CCTV systems will be installed to ensure passenger and asset security, and efforts will be made to reduce accidents. Additionally, fare discounts will be offered to long-distance passengers not eligible for existing concessions, and several employee welfare schemes will be introduced.
MSRTC, which began operations on June 1, 1948, from Pune to Ahmednagar (now Ahilyanagar), expanded steadily in its early decades.
Starting with just 35 buses, the corporation has since expanded its network to nearly every village in the state, steadily improving its services, safety measures, and infrastructure.
The operational summary in the white paper, covering the past 45 years, highlights both growth and challenges. It includes key data points from different time periods — 1981–82, 1991–92, 2001–02, 2011–12, 2021–22, and 2024–25 — reflecting fluctuations in fleet size, workforce, passenger volume, and service reach.
In 1981–82, the average fleet size was 10,028 buses, which increased to 18,275 by 2011–12. However, it later declined, with only 15,764 buses operating in 2024–25. Employee strength, which stood at 79,458 in 1981–82, peaked at 1,12,200 in 1991–92 before decreasing to 86,317 in the latest figures.
Annual effective kilometers covered grew from 79.94 crore km in 1981–82 to 198.38 crore km in 2011–12, but dropped to 185.80 crore km in 2024–25. Passenger traffic followed a similar trend, rising from 127.52 crore in 1981–82 to 260.04 crore in 2011–12, before falling to 213.34 crore in 2024–25.
The number of bus stations has steadily grown from 396 in 1981–82 to 598 in 2024–25, indicating MSRTC’s continued commitment to accessibility.
The white paper also identifies several key reasons behind the financial crisis. One of the primary issues is the shortage of buses in the MSRTC fleet, which has severely hampered its ability to meet rising passenger demand across the state. Compounding the problem is the fact that many of the existing buses have exceeded their operational lifespan, resulting in frequent breakdowns and high maintenance costs.
Another major concern is the mandatory operation of loss-making routes. In an effort to fulfill social obligations and ensure connectivity to remote areas, the corporation continues to run buses on routes that generate little or no revenue. Additionally, the fare structure has seen irregular revisions over the years, with delays in necessary fare hikes placing further financial strain on the corporation.
Illegal transport operations also pose a significant threat, as unlicensed private operators continue to eat into MSRTC’s passenger base, often offering lower fares and more flexible timings. These factors have collectively contributed to the deepening financial crisis, prompting urgent calls for reform and government intervention.
Despite financial hurdles, MSRTC has made commendable efforts to expand connectivity. The percentage of villages within 0–3 km of MSRTC services rose from 59.40% in 1988–89 to 76.84% in 2021–22. Currently, over 90% of the state’s population is covered by its network.
The white paper paints a stark picture of MSRTC’s financial position. In 2023–24, accumulated operating losses amounted to Rs 10,322.32 crore. Employee costs were pegged at Rs 4,864.34 crore, while fuel expenses stood at Rs 3,656.76 crore. By comparison, in 2018–19, employee costs were Rs 3,787.92 crore and fuel expenses Rs 3,013.67 crore.
Compared to its counterparts in Andhra Pradesh, Telangana, Karnataka, and Rajasthan, MSRTC lags in daily vehicle utilization, which stands at 347.44 km — below the national average. However, its fuel efficiency is 4.45 km per litre, which is better than these states, and its revenue per kilometre stands at Rs 55.03 — higher than in the aforementioned states.
As of March 2025, MSRTC faces pending liabilities of over Rs 3,500 crore. These include Rs 1,262.72 crore in Provident Fund dues, Rs1,114.89 crore owed to the Gratuity Trust, Rs 217.19 crore in unpaid fuel and supplier bills, and Rs 821.13 crore in passenger tax dues. A large amount in pending Dearness Allowance and other employee dues also remains unpaid.
The white paper acknowledges that MSRTC’s survival has been made possible by consistent government support. Between 2001 and 2024, the state provided Rs 6,353.80 crore in capital support. In the wake of the pandemic and staff strikes, revenue grants totaling Rs 4,708.73 crore were issued between 2020 and 2023. Subsidy reimbursements over the last four years have totaled Rs 9,922.78 crore.
The document concludes with an appeal for sustained government assistance and reiterates MSRTC’s commitment to reform, improved public service, and financial discipline.
