MSRTC posts ₹591 cr. loss in FY2025-26, 23 divisions in the red

Against this backdrop, state transport minister and MSRTC chairman Pratap Sarnaik highlighted the urgency of corrective measures

The Maharashtra State Road Transport Corporation (MSRTC) has reported a loss of ₹591 crore, with total revenue of ₹11,475 crore against expenditure of ₹12,066 crore for the financial year 2025-26. What’s more, only eight out of 31 divisions of the public transport utility are currently profitable while the remaining 23 divisions continue to incur losses. Furthermore, major divisions such as Nashik, Kolhapur, Nagpur, Ratnagiri, Satara, and Thane have recorded deficits that are particularly concerning.

Furthermore, major divisions such as Nashik, Kolhapur, Nagpur, Ratnagiri, Satara, and Thane have recorded deficits that are particularly concerning. (HT)

Against this backdrop, state transport minister and MSRTC chairman Pratap Sarnaik highlighted the urgency of corrective measures, stressing the need for efficient utilisation of buses and manpower, in-depth analysis of loss-making divisions, improved administrative accountability, and appointment of capable officers to curb the daily loss of nearly ₹1.6 crore.

Sarnaik was speaking at a review meeting held on Wednesday at the MSRTC headquarters, attended by vice-chairman and managing director Dr Madhav Kusekar along with all department heads. Sarnaik pointed out that the corporation’s average daily revenue stands at ₹31.40 crore while its average daily expenditure has reached ₹33 crore, resulting in a consistent daily loss of around ₹1.6 crore. The minister noted that despite a few divisions performing well, the overall financial condition of the corporation remains strained due to persistent operational and administrative inefficiencies.

“It is absolutely essential that we undertake systematic transport planning and ensure optimal utilisation of available buses and manpower in the coming financial year. Our primary objective must be to reduce and eventually eliminate the daily loss of ₹1.5 to ₹2 crore through disciplined operations and better resource management,” Sarnaik said.

He further emphasised the need for a detailed investigation into loss-making divisions. “We must carry out a thorough analysis of each loss-making division to identify the root causes, whether they are related to poor route planning, inefficient operations, or administrative shortcomings, and implement concrete corrective measures without delay,” he said.

The minister also underlined the importance of strong and effective leadership in the underperforming divisions. “In the divisions that are consistently reporting losses, especially the larger ones, there is an urgent need to appoint capable and efficient officers who can take decisive action. Administrative discipline, accountability, and clearly defined responsibilities must be strengthened if we are to make MSRTC financially sustainable,” he said.

Expressing concern over administrative lapses, Sarnaik specifically highlighted the situation in the Nagpur division, which has been incurring losses for the past two years. He criticised the appointment of officers without adequate financial and statutory powers in key roles. “Officials who do not have the necessary authority cannot maintain effective control over administration. Such appointments weaken the system. These officers should be reassigned, and strong, empowered leadership must be put in place,” he stated.

Sarnaik also noted that in the previous financial year, eight divisions namely Jalna, Parbhani, Buldhana, Bhandara, Gadchiroli, Akola, Dhule, and Wardha had reported profits, demonstrating that improved performance is achievable with the right approach. Sarnaik concluded by stating that a comprehensive reform plan focusing on administrative discipline, efficient use of resources, and strict accountability will soon be implemented to strengthen MSRTC’s financial position and ensure long-term sustainability.