Maha transport department to publish white paper on MSRTC finances

Officials from the state finance and audit department have been asked to submit the white paper by mid-June

Mumbai: Days after expressing concern over an estimated loss of ₹3,191 crore to the Maharashtra State Road Transport Corporation (MSRTC) in a deal to acquire 5,150 electric buses on lease, transport minister Pratap Sarnaik has asked for a white paper on the state-run bus service’s finances to be published. Officials from the state finance and audit department have been asked to submit the white paper by mid-June.

Pune, India - April 15, 2022: Number of MSRTC buses increased as employees resume duty after strike at Swargate ST Stand, in Pune, India, on Friday, April 15, 2022. (Photo by Ravindra Joshi/HT PHOTO) (Ravindra Joshi/HT Photo)

Confirming the development, Sarnaik said that MSRTC’s finances have been a point of concern for a few years. “After taking charge as chairman of a corporation, I got some idea of the financial condition. But considering the estimated loss of ₹3,191 crore in the next few years in the e-bus deal, if we want to operate MSRTC smoothly, a detailed report on the condition of MSRTC is a must. So, I have ordered to prepare and submit a white paper on it by mid-June. I will make it public,” he said.

Apart from the e-bus deal, various concessions for passengers in state transport (ST) buses, like the 50% concession for women, have led to losses of around ₹1,000 crore, officials said.

In April, MSRTC’s 87,000 employees received only 56% of their salaries initially. The remainder was paid only after the state government released grants to pay for the concessions. This also resulted in a delay in contributions to MSRTC employees’ provident funds and gratuity accounts, officials added.

Sarnaik said that the state government and his transport department have many plans to revive MSRTC, including adding to its fleet and using so-called smart buses. But knowing the ground reality would be important before executing the plans, which is where the white paper comes in, he added.

On Friday, after learning that MSRTC would suffer a huge loss in the e-bus deal, Sarnaik directed officials to prepare a proposal for viability gap funding, which would be sent to the state government. The corporation is incurring a loss of ₹12 per kilometre for 12-metre-long buses and ₹16 per kilometre for nine-metre-long buses supplied by Evey Trans Pvt Ltd, a subsidiary of Olectra Greentech Ltd.