MSRTC revenue rises by Rs 66 crore in August after buses are aligned with passenger demand

06 September,2026 01:21 PM IST |  Mumbai  |  mid-day online correspondent

The corporation has also recorded its highest-ever daily revenue of Rs 45 crore on August 31, while its monthly revenue crossed the Rs 1,000 crore mark for the first time

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The Maharashtra State Road Transport Corporation (MSRTC) recorded a Rs 66 crore increase in revenue in August compared with July, with changes to bus schedules and services based on passenger demand contributing to the improvement.

The increase followed a series of review meetings and directions from Transport Minister and MSRTC Chairman Pratap Sarnaik, who has been pushing the corporation to improve revenue and reduce operating losses. Sarnaik said the latest figures indicate that MSRTC's efforts to align services with passenger demand are beginning to produce results.

The corporation has also recorded its highest-ever daily revenue of Rs 45 crore on August 31, while its monthly revenue crossed the Rs 1,000 crore mark for the first time.

Depots asked to focus on local passenger demand

Each MSRTC depot is responsible for providing bus services to the population in its respective area. According to the corporation, more than 85 per cent of its passengers travel less than 100 km, making local and regional services an important part of its operations.

However, MSRTC said that in recent years, greater emphasis had been placed on long-distance services, including routes that did not always generate sufficient passenger traffic. This resulted in higher operating costs without a corresponding increase in revenue, contributing to the corporation's financial losses.

The issue was raised during a review of MSRTC's revenue performance last month. Following the review, depots began revising their schedules from August by taking into account passenger numbers and travel patterns on individual routes.

The changes included services aimed at daily commuters, farmers, women, students and senior citizens, particularly in rural and semi-urban areas. Depots were also directed to introduce additional services on routes that see increased passenger movement on weekly market days, during fairs and on other occasions that attract larger crowds.

Record daily revenue on August 31

The revised approach coincided with increased travel during the Raksha Bandhan period. On August 31, MSRTC recorded ticket sales of Rs 45 crore, its highest daily revenue since the corporation was established.

MSRTC's average daily revenue is currently around Rs 34 crore to Rs 35 crore. The August 31 figure was therefore about Rs 10 crore higher than the usual daily level.

The corporation attributed the record collection in part to the deployment of buses on routes where passenger demand was higher. Rather than maintaining services regardless of passenger numbers, depots adjusted frequencies and schedules according to actual demand.

Monthly revenue crosses Rs 1,000 crore

MSRTC's revenue exceeded Rs 1,000 crore in August, marking the first time the corporation has crossed that threshold in a single month.

The corporation said that continued growth in revenue could help it cover its current operating losses within the next two to three months. However, the outcome will depend on whether the improvement in collections can be sustained over the coming months.

The recent changes reflect a broader shift towards demand-based transport planning, with bus services being increased on routes that consistently attract passengers while reducing the emphasis on services that generate comparatively lower returns.

Sarnaik said the latest figures demonstrate the importance of matching bus services with passenger requirements rather than focusing primarily on the number of services operated.

"MSRTC is the lifeline of the common people. Therefore, its services must reach passengers according to their needs. Running more services on routes where passengers are available, rather than operating unproductive services, is the effective formula for increasing revenue. The Rs 66 crore increase in revenue recorded in August is an indication that changes have begun in the right direction. If transport planning continues to take passenger demand into account, it will be possible for MSRTC to generate enough monthly revenue to at least avoid operating losses," Transport Minister Pratap Sarnaik said.

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