Perform or face action, transport minister warns MSRTC officials

Sarnaik issued a one-month ultimatum to officials at all levels, stating that strict action would be initiated if they failed to increase the corporation’s revenue.

MUMBAI: In a bid to improve the financial health of the loss-making Maharashtra State Road Transport Corporation (MSRTC), Maharashtra transport minister and MSRTC chairman Pratap Sarnaik on Monday warned officials across the organisation to improve performance or face disciplinary action.

Perform or face action, transport minister warns MSRTC officials

Sarnaik issued a one-month ultimatum to officials at all levels, stating that strict action would be initiated if they failed to increase the corporation’s revenue.

“If concrete results are not seen in increasing revenue within this period, strict disciplinary action such as transfer, demotion or suspension will be taken against the concerned officials,” Sarnaik said.

According to MSRTC figures, eight of its 31 divisions reported profits in the previous financial year, demonstrating that improved performance is achievable with effective management. This year, two additional divisions have also turned profitable.

However, major divisions such as Nashik, Kolhapur, Nagpur, Ratnagiri, Satara and Thane continue to report losses. During earlier review meetings, officials were asked to focus on administrative discipline, efficient utilisation of resources and greater accountability to improve MSRTC’s financial position and ensure long-term sustainability.

For the financial year 2025-26, MSRTC reported a loss of ₹591 crore, with revenue of ₹11 crore against expenditure of ₹12 crore.

In a statement, Sarnaik said the state government had provided substantial relief to MSRTC employees by accepting several long-pending financial demands. “The management and officers must now recognise their responsibility and make maximum efforts to increase revenue,” he said.

Earlier this month, the state government approved a 5% increase in the dearness allowance for MSRTC employees, raising it from 53% to 58% of basic pay and bringing it in line with state government employees. The hike is expected to increase MSRTC’s expenditure by ₹13 crore. The government also approved payment of house rent allowance, which is estimated to cost the corporation an additional ₹100 crore annually.

MSRTC, one of India’s largest state-owned public transport undertakings, operates a fleet of over 15,000 buses, employs more than 86,000 people and transports over 55 lakh passengers daily.

Despite implementing a fare hike in April and May, the corporation has continued to incur losses. Officials have termed the decline in revenue during the summer vacation period, traditionally the most profitable season for the corporation, as a matter of serious concern.

“The performance of officers at depots, divisions, regional offices and headquarters will be evaluated separately. Their responsibilities will be assessed based on passenger growth, revenue growth, route planning, cost control, efficient utilisation of buses and innovative local initiatives,” Sarnaik said.

“It is time for officials to deliver results to improve MSRTC’s financial condition. Those who perform will receive full support. However, inefficiency, apathy and inaction will not be tolerated. After one month, decisions will be taken based on performance and, if necessary, strict action including transfer, demotion or suspension will follow,” he added.

As part of efforts to turn around the corporation’s finances, the state government is also pursuing a public-private partnership model to redevelop 216 MSRTC bus depots across Maharashtra and generate additional revenue to manage the corporation’s mounting debt of ₹4,400 crore.