MSRTC presents financial white paper with 19-point revival plan

In 2018-19, accumulated loss of MSRTC was about Rs 4600 cr. Pics/By Special Arrangement

The Maharashtra State Road Transport Corporation (MSRTC) on Monday presented a financial white paper and listed a 19-point plan to breathe new life into one of India's biggest public transport bus fleet organisations, with the Maharashtra transport minister and chairman of the undertaking seeking four years for its revival and profits. Insiders, experts and trade unions said the report was nothing new but a rehash of already-known points and was like an "old wine in a new bottle."

The financial white paper submitted on Monday stated that in the past 45 years, the MSRTC was profitable for just eight years. Given the fact it provides public transport service to the deepest rural pockets of the state, making it affordable to the common man, the corporation needs to be turned around to become financially viable in the future. In the year 2018-19, the accumulated loss of the MSRTC was about Rs 4600 crore, but after the pandemic, lockdown and long-term strike by its employees, the accumulated loss has now reached Rs 10,322 crore. Of this, employees' dues account for about Rs 3000 crore, the paper stated.

Transport Minister Pratap Sarnaik at MSRTC headquarters in Mumbai Central yesterday

"I assure you that I shall try and bring the corporation back on track. With such losses, it is very necessary for the government to help the MSRTC in the form of grants. As a cabinet minister, I will definitely follow up on this. However, to reduce the financial losses of the organisation, officers and employees also need to increase their productivity and save the corporation's assets," said Transport Minister Pratap Sarnaik. He also announced that the undertaking was aiming to cover major tribal belts in Maharashtra and was planning to procure 50 minibuses for hilly regions, as traditional buses were unable to negotiate the narrow stretches.

Stakeholders dismissed the report as old wine in a new bottle. "This white paper does not mention anything about identifying the potential challenges faced by the corporation, and there is no clarity on the measures to be taken. The information shared in the white paper, compiled by the statistics department, has already been published and presented during every legislative session. Until a decision is taken regarding the payment of arrears amounting to R7000 crore, there will be no real solution," Shrirang Barge, general secretary, Maharashtra ST Employees Congress, said.

19-point plan for future progress

Inclusion of 5000 new buses every year
Inclusion of high-tech Volvo buses on lease
Starting retail fuel sales service centres for private vehicles on a revenue-sharing basis at MSRTC fuel supply sites
Development of MSRTC plots on a build-operate-transfer or public-private partnership basis
Rationalisation of bus routes
Increase in non-operating income
Creation of better passenger facilities and amenities
Setting practical targets for increasing income
Inclusion of 5000 LNG-fuelled buses
Inclusion of 1000 CNG-fuelled buses
Development of enterprise resource planning for the management
Setting targets for cost-saving performance
Inclusion of 5300 electric buses in the corporation's fleet
Implementation of the National Common Mobility Card scheme
Implementation of an electronic ticketing system
Installation of CCTV systems for passenger and property security
Reduction in the number of accidents
Provision of concessions to long-distance passengers
Implementation of various welfare schemes for employees

Reasons for losses identified
>> Shortage of buses
>> Buses running beyond their lifespan
>> Loss-making operations due to mandatory routes
>> Irregular fare hike
>> Illegal traffic