MSRTC targets ₹241 Cr annual savings from diesel reform

MSRTC currently consumes about 10.87 lakh litres of diesel daily and nearly 40 crore litres annually, incurring a cost of around ₹3,400 crore each year, which could rise to ₹4,700 crore with the addition of 8,000 new buses

In a major push to strengthen the financial position of the Maharashtra State Road Transport Corporation (MSRTC), transport minister and MSRTC chairman Pratap Sarnaik on Friday announced a series of multi-dimensional measures focused on cost control and alternative revenue generation. He stated that a transparent and competitive diesel procurement process, carried out without any interference, will result in annual savings of around ₹241 crore.

Highlighting the financial stress on the corporation, Sarnaik noted that the MSRTC is currently burdened with a cumulative loss of nearly ₹12,000 crore, with an additional loss of about ₹750 crore recorded till February 2026 in the current financial year. (REPRESENTATIVE PHOTO)

“We ensured that the tender process was carried out in a completely transparent, rule-based and impartial manner, with zero tolerance for any kind of interference. Despite attempts by some companies to spread misinformation and even approach the court, the process stood firm, and the court’s refusal to intervene reaffirmed its fairness,” Sarnaik said.

Highlighting the financial stress on the corporation, Sarnaik noted that the MSRTC is currently burdened with a cumulative loss of nearly ₹12,000 crore, with an additional loss of about ₹750 crore recorded till February 2026 in the current financial year. “Our daily expenditure exceeds income by ₹1 to ₹2 crore making it clear that relying solely on ticket revenue is no longer viable. Creating alternative sources of income is no longer optional, but a necessity,” he said, adding that the corporation has set a target of generating around ₹250 crore through advertisements in the current year.

Providing details of the diesel procurement reforms, he explained that earlier, MSRTC received a discount of around ₹2.70 per litre, later increased to ₹3. However, through a competitive bidding process, the discount has now risen to ₹5.13 per litre— ₹2.13 higher than before—leading to substantial savings of ₹240–241 crore annually. MSRTC currently consumes about 10.87 lakh litres of diesel daily and nearly 40 crore litres annually, incurring a cost of around ₹3,400 crore each year, which could rise to ₹4,700 crore with the addition of 8,000 new buses.

Sarnaik also announced MSRTC’s entry into the commercial fuel retail sector to boost revenue. “We are setting up 100 to 110 multi-modal fuel stations under a public-private partnership model, offering diesel, petrol, CNG, LNG, and in the future, EV charging facilities. This initiative alone is expected to generate around ₹100 crore annually,” he said, noting that a pilot project has already been launched in Dhule. To curb fuel losses and irregularities, AI-based sensors will be installed in fuel tanks and nozzles. “Currently, we observe a loss of 4 to 5 litres per 100 litres due to outdated systems. With AI-based monitoring, we aim to eliminate such leakages and bring in greater accountability,” he added.

On the revenue front, Sarnaik emphasized the untapped potential of MSRTC’s vast network. “With 251 depots and over 600 bus stations catering to 50–55 lakh passengers daily, we have a massive platform for advertising. By leveraging bus interiors, exteriors, stations, and digital displays, we aim to generate ₹250 crore over the next five years, compared to the earlier annual revenue of just ₹20–22 crore,” he said.

The corporation is also focusing on renewable energy initiatives to reduce costs and generate income. Solar rooftop projects are being installed across depots, bus stations, and workshops to produce electricity. “After meeting our internal requirements, surplus power will be sold, generating savings and revenue of ₹10–15 crore annually. Additionally, we plan to use vacant land for solar farming and supply electricity to distribution companies, ensuring a sustainable revenue stream,” Sarnaik stated.

Reiterating the broader vision, Sarnaik said, “Our goal is to bring financial discipline, transparency, and self-reliance to MSRTC. We are committed to making the corporation strong and sustainable through innovative revenue models and strict cost control.” He further added that in the coming financial year, initiatives such as scrapping projects, AI-based duty management for drivers and conductors to reduce overtime expenses, and other reforms are expected to generate at least ₹500 crore in additional revenue.