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MSRTC strike: Final breakdown of mismanaged transport behemoth
Currently, MSRTC is running annual losses of ₹6,400 crore. Reducing footfall, increased operating costs and rising fuel prices, preceded the Covid- induced lockdowns that have all dealt a massive blow to the ST’s finances
PUNE The Maharashtra State Road Transport Corporation (MSRTC), which runs state transport bus service, is in bad shape financially. With a fleet of 18,500 buses, MSRTC catered to 6.7 million commuters, daily, in the pre-pandemic era. A true transport behemoth.
Currently, it is running annual losses of ₹6,400 crore. Reducing footfall, increased operating costs and rising fuel prices, preceded the Covid- induced lockdowns that have all dealt a massive blow to the ST’s finances.
Despite its large fleet and as many as 246 depots – some of them located at premium sites worth crores of rupees – the ST service in Maharashtra has lost its way over the past few years.
The allegation is mis-management and apathy shown by successive governments – first BJP and now the MVA alliance.
The ongoing strike by its staff, demanding a merger of the service into the state government structure of departments, has come at a time when the transport body is struggling to pay monthly salaries. However, privatisation may also not be a good option, say experts and retired officials from the MSRTC.
As the strike by staff continued into its 12th consecutive day on Wednesday, the transport body has now suspended 350 employees from 45 depots across the state and filed a contempt petition in the Bombay High Court against the protesting workers.
Despite an HC order deeming the strike “illegal” and several attempts made by the state government and even chief minister Uddhav Thackeray, who appealed to the protesting workers to go back to work, the strike continues.
The state transport corporation, which runs the inter- as well as intra-district public transport services, was facing a cash crunch before the lockdown and had a debt burden of ₹3,500 crore. The shutting down of services during the two lockdowns, imposed last year and this year, has increased its debt burden to ₹9,500 crore.
“There are several reasons for the losses due to mismanagement within the MSRTC, starting from negligence of better services for passengers, especially on the long routes. Also, depot development plan which was proposed 20 years back didn’t get implemented. On other hand, liabilities of the organisation kept on increasing. New means of income, like the newly started cargo services, should have begun long ago. As there were no frequent buses on long routes it gave the chance to private players to enter the market,” said Satish Mistry, a civic activist and transport expert.
Due to the ongoing strike of workers at all 250 depots across the state are not operational. The organisation’s 96,000 employees see the transport body becoming a state government department as the only option to stay alive.
“There are two angles to look at this strike called by the workers. First whether the merging of the organisation is possible or not; and then what other solutions can be offered to resolve the issue. By keeping the service shut during the peak festival period like Diwali workers are are causing losses to the organisation. Now as the state government has formed a three- member committee to review the situation and take corrective measures, for the benefit of passengers it is necessary that workers go back to work,” said Sharad Kenjale, a former senior Mumbai depot manager of the MSRTC .
As the stalemate continued on Wednesday, chief minister Uddhav Thackeray stated that the state government is trying its best to provide relief to the employees.
“For the last few days, the state government is taking all possible steps to resolve this issue and the High Court is also satisfied with the measures taken by the state government. So I appeal to all protesting workers of MSRTC not to hold people of the state hostage and get back to work,” Thackeray said in a message on Wednesday.
State transport minister Anil Parab said, “Since the strike began, we were always open for dialogue with union members and even later, we were ready to resolve their issues. The merging of an organisation into the government is not so easy and cannot be done in one day. It is a long process. We are following orders issued by the High Court and so workers should also follow it. Now we have filed a contempt of court petition in the High Court against the protesting workers, while at the same time we have formed a three-member committee which will be chaired by the principal secretary. Within three months the committee will submit its report to HC. Our request to all the workers would be to please go back to work. Solutions will be found only after fruitful discussions.”
During the pandemic, the MSRTC had launched special cargo services to give a financial boost to the organisation. Despite several measures, the situation has not augured well for the corporation.
The monthly financial losses of the organisation is now over ₹500 crore and till now, in the last two years, the losses has gone above ₹9,900 crore, according to MSRTC officials. If the strike continues and workers do not return to work the situation will worsen.
“MSRTC is the only transport body which goes to remote parts of the villages all across the state. Also, it is cheap and affordable for common people. There are various subsidies and discounts for senior citizens, ex-Army and other categories. For the last 10 days during Diwali people have had to travel by paying double or triple fares to private tourist buses. This strike should end now or else people, especially from the rural parts of the state will have to stop traveling,” said Mahesh Sarnaik, secretary, state MSRTC bus passengers’ forum..
