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Indian Express
5 days ago
- Business
- Indian Express
MSRTC will open public fuel stations in Maharashtra to boost revenue: Minister Pratap Sarnaik
The Maharashtra State Road Transport Corporation (MSRTC) has announced plans to open petrol and diesel pumps at its depots across the state for public use, aimed at generating extra revenue for the financially strained public transport system. Transport Minister and MSRTC Chairman Pratap Sarnaik stated on Friday that these retail outlets will be set up in partnership with central public sector firms such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum. 'The decision to launch these fuel stations was taken because the income from passenger ticket sales alone is not sufficient to sustain our operations. Our goal is to find new sources of revenue to finance MSRTC's stability,' he said. Currently, MSRTC purchases fuel from Indian Oil and Bharat Petroleum and provides diesel only for its buses from 251 pumps located on its property. The Corporation plans to convert such outlets and expand its services to cater to private vehicles as well. Under the proposed scheme, fuel stations will be set up at commercial buildings on MSRTC-owned land of 750 square metres, the minister said. In addition to fuel pumps, retail outlets can be installed to provide room for small businesses, which can also fetch additional income to MSRTC, he added. MSRTC has experience in running pumps and fuel supply, which the officials believe will facilitate this transition. Surveys are currently being conducted on MSRTC-owned plots to identify suitable sites for setting up commercial fuel stations. These stations, once removed from their current utilisation for bus fleets, will be reconfigured to sell fuel to the public as well, Sarnaik mentioned. The state government and MSRTC are actively working on official commercial partnership agreements with the central oil companies, which, according to Minister Sarnik, would enhance transparency as the agreement will involve the Central and State Governments. 'This initiative is not only a revenue-enhancing measure, but also a model of collaboration between state and central agencies, yielding public advantage,' Sarnaik added. The plan also involves transforming these new areas into 'petro-motel hubs,' providing room for fuel sales, simple retail, and facilities for MSRTC's internal operational purposes.
Hindustan Times
29-06-2025
- Automotive
- Hindustan Times
MSRTC to set up 100-acre vehicle scrapping facility near Sambhaji Nagar
MUMBAI: In a bid to increase the revenue of the debt-ridden Maharashtra State Road Transport Corporation (MSRTC), the transport department has decided to set up a mega vehicle scrapping facility near Chhatrapati Sambhaji Nagar on 100 acre of land. It will be on Public Private Partnership (PPP) basis and the bidder will be selected on the basis of share he offers in revenue. The upcoming facility would be around 20 times bigger than the existing facilities in the state, which are on 2-5 acre of land. Mumbai, India –08 June 2018: A View of ST buses lined up at the Mumbai Central depot, after Maharashtra State Road Transport Corporation (MSRTC) workers went on a flash strike, in Mumbai, on Friday, June 08, 2018. (Photo by Bhushan Koyande/HT) In 2021, the central government came up with a policy for scientifically scrapping vehicles which are over 15 years old, under the Registered Vehicle Scrapping Facility (RVSF) guidelines. Maharashtra government adopted this policy in 2023, and as per the Automotive Industry Standard (AIS), guidelines have been laid down for granting recognition to such scrapping centres. The largest facility will be built at Khuldabad in Chhatrapati Sambhajinagar district, on a 100-acre MSRTC-owned land parcel. Currently, eight authorised entities operate scrapping centers in the state, each with an annual capacity of scrapping a minimum of 1,000 vehicles. Transport minister Pratap Sarnaik on Friday held a meeting regarding the scrapping of vehicles and facility centres. 'This new centre will ensure that old vehicles are scientifically dismantled and their parts are permanently disposed off in a way that prevents reuse. The initiative is expected to generate a new and sustainable revenue stream for MSRTC,' he said. This decision is expected to earn revenue for the debt-ridden MSRTC. The white paper released last week on the financial situation of MSRTC showed that its accumulated losses for five decades stand at ₹ 10,322 crore while dues towards employees' provident fund and gratuity are ₹ 3,297 crore. A transport department officer said that the site for the new facility has access from different regions of the state. 'It's on a fast track route from Mumbai and Vidarbha region due to Samruddhi Express highway. It is close to north Maharashtra and also western Maharashtra. In the coming years, around 6000 ST buses of MSRTC would go for scrapping as they would be old. Vehicles from government offices will also go for scrapping. So there is a huge scope for this facility to give good revenue to MSRTC.' He also added that MSRTC is planning to float tender on the basis of revenue-sharing model instead of a one-time amount, and the company which will offer a bigger share would get the work.
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Business Standard
23-06-2025
- Business
- Business Standard
MSRTC's accumulated losses rise to ₹10,324 cr in FY24, reveals white paper
Accumulated losses of the Maharashtra State Road Transport Corp (MSRTC) surged to Rs 10,324 crore in FY 2023-24 from Rs 4,603 crore in 2018-19 and the state-owned body clocked profit only in eight fiscal years in the last 45 years, said a 'white paper' released on Monday. Transport Minister Pratap Sarnaik, who is also MSRTC chairman, said the possibility of the corporation coming out of huge losses anytime soon is very slim, but efforts were on to improve its financial condition as he announced induction of more buses and measures to boost revenue. The state-owned transport corporation's accumulated losses surged to Rs 10,324 crore in FY 2023-24 from Rs 4,603 crore in 2018-19, as per the MSRTC's white paper on its financial status released in the presence of Sarnaik here. MSRTC officials said the accumulated losses of the country's largest state-run transport undertaking are likely to rise further as the corporation has reported an unaudited loss of Rs 1,217 crore for the financial year 2024-25. Major factors contributing to the financial crisis included a shortage of buses, frequent breakdowns due to aging vehicles, and the need to operate on loss-making routes for social obligations. Inadequate fare revisions and the impact of illegal transport operations have also reduced revenue, as per the white paper. The corporation is considering fare concessions for long-distance passengers who currently do not receive any discounts and planning welfare schemes for its employees. Interestingly, white papers are typically demanded by opposition parties, but in the case of MSRTC, the document was published under an initiative taken by the transport minister. Sarnaik, who was given the key portfolio in December, directed the corporation to prepare a white paper and ensured it was released within a few months. Before this, the Maharashtra government had released a white paper on the financial condition of MSRTC in 2014-15. A white paper is an authoritative, in-depth report on a specific topic. "Had the government paid attention 3-4 years back, the ST corporation would not have been in such a situation. Losses of Rs 10,000 crore is not a small amount. The possibility of overcoming these losses is quite less," Sarnaik noted. The minister said the corporation was profitable for eight financial years in the last 45 years. In four years out of these eight, the state's current principal secretary (finance), OP Gupta, was MSRTC vice-chairman and managing director. However, the conditions were different then and now. At the time, the corporation had more than 1 lakh employees and 18,500 buses. Now, the number of employees has come down to 87,000 and the buses to 14,500, he said. He said MSRTC plans to induct 5,000 new buses annually, including 100 high-end Volvo buses on lease. Fuel pumps for private vehicles will be set up on MSRTC-owned land through revenue-sharing agreements with fuel suppliers. Corporation-owned assets will be developed under BOT (Build-Operate-Transfer) or PPP (Public-Private Partnership) models. The white paper noted that as of March 2025, MSRTC owes over Rs 3,500 crore in dues, including Rs 1,262.72 crore in PF arrears, Rs 1,114.89 crore for the gratuity trust, Rs 217.19 crore in fuel supplier bills, and Rs 821.13 crore in unpaid passenger taxes. It pointed out that between 2001-2024, the state government extended Rs 6,353.80 crore in capital assistance. During the COVID-19 pandemic and a subsequent strike by employees, Rs 4,708.73 crore in grants were provided. In the past four years, MSRTC received Rs 9,922.78 crore in government support. MSRTC, which came into existence on June 1, 1948, is the largest such body in India, with a fleet of more than 15,000 buses. Daily more than 55 lakh commuters travel on its buses. As per the officials, the financial data of the last 45 years was taken into consideration for preparing the white paper. During this period, the corporation was in profit only for eight financial years -- 1987-88, 1990-91, 1994-95, 1995-96, 2006-07, 2007-08, 2008-09, and 2009-10. In 1981-82, the corporation operated an average fleet of 10,028 buses, maintained 396 bus stands, and employed 79,458 people. It transported approximately 127.52 crore passengers during that year, as per the white paper. By the end of 2024-25, MSRTC operated an average fleet of 15,764 buses, managed 598 bus stands, and employed 86,317 personnel. During the year, it transported 213.34 crore passengers. The document provides a clear picture of MSRTC's current financial condition and outlines possible measures for improvement. "The white paper has been published to transparently inform people, government, employees, and other stakeholders about MSRTC's financial health," according to the corporation. The document details upcoming policy decisions, cost-cutting steps, and plans to increase revenue and enhance passenger services. Replying to questions from the media, the MSRTC officials said they are going to bring a GPS-based application for passengers to help them track the exact location of buses. To reduce costs, MSRTC will introduce 5,000 LNG and 1,000 CNG buses. An ERP (Enterprise Resource Planning) system will be implemented to improve operational efficiency. The white paper proposes deployment of 5,300 electric buses to improve passenger safety and convenience. The National Common Mobility Card (NCMC) scheme will be implemented for concessional passengers and digital ticketing will be expanded. CCTVs will be installed for the safety of passengers and measures will be introduced to reduce accidents, it said.
Time of India
23-06-2025
- Business
- Time of India
MSRTC losses over 10,000cr, up 124% in 5 yrs, shows white paper
Mumbai: The accumulated losses for the state bus corporation surpassed the Rs 10,000 crore mark, revealed Maharashtra State Road Transport Corporation (MSRTC) chairman Pratap Sarnaik in the financial white paper released for the bus corporation on Monday. The accumulated losses rose by 124% over five years. Sarnaik announced to the media that he will transform the loss-making corporation into a profitable entity within four years. According to the white paper document, the corporation made a profit in only 8 of the last 45 fiscal years, with consistent losses in the remaining years. The document emphasised upcoming policy decisions, cost-cutting plans, and strategies to increase revenue and improve passenger services. According to the white paper, MSRTC plans to add 5,000 new buses annually to its fleet to boost revenue. This includes leasing high-quality Volvo buses. "Fuel pumps for private vehicles will be set up on MSRTC-owned land, with revenue-sharing agreements with fuel suppliers. Additionally, MSRTC properties will be developed under BOT (Build-Operate-Transfer) or PPP (Public-Private Partnership) models," it stated. "To reduce costs, there is a plan to include 5,000 LNG and 1,000 CNG buses in the fleet, and introduce 5,300 electric buses to improve passenger safety and amenities," said Sarnaik. The NCMC (National Common Mobility Card) scheme will be implemented for concessional passengers, the white paper mentioned. "Digital ticketing machines with conductors and On-Board Readers (OBR) will be increased in buses, while CCTV systems will be installed for passenger safety," it stated. Sarnaik further said that there were plans to offer fare concessions for long-distance passengers and welfare schemes for employees. The organisation, serving as Maharashtra's primary public transport provider, facilitates daily travel for nearly 58 lakh passengers. The accumulated losses escalated from Rs 4,600 crore in 2018-19 to Rs 10,322 crore, attributed to Covid-19 lockdown and prolonged employee strikes.
