Maharashtra Transport Minister and Maharashtra State Road Transport Corporation (MSRTC) Chairman, Pratap Sarnaik, said that the organisation that is facing financial crisis for a long time will be brought into profit in the next four years. Pratap Sarnaik stated that MSRTC has been operating in the state for 45 years and registered profits only in eight years. He said that despite the financial issues, the ‘lifeline of Maharashtra’ plays a critical role in daily lives of all the commuters. It transports over 55 lakh passengers across the state daily. It covers nearly 90% of Maharashtra’s geographical area.
The organisation earned profits in the following eight financial years, as per Minister Pratap Sarnaik:
- 1987-88
- 1990-91
- 1994-95
- 1995-96
- 2006-07
- 2007-08
- 2008-09
- 2009-10
MSRTC published a White Paper outlining its financial predicament and strategic intentions to increase revenue and cut expenses as part of a renewed commitment to transparency and reform. The White Paper states that MSRTC's total losses for 2018–19 were Rs 4,600 crore. However, the COVID-19 epidemic and a protracted employee strike combined to cause losses of more than Rs 10,322 crore. Employees are owed approximately Rs 3,000 crore of this in the form of unpaid pay and other benefits.
Pratap Sarnaik said that the government support through the grants is critical. He said, "As the Transport Minister, I will ensure continuous and active follow-up with the state government to stabilize MSRTC's financial condition. But this effort must be complemented by internal reforms as well. MSRTC officers and staff must shoulder their responsibilities, improve productivity, and eliminate unnecessary expenditures to ease the financial burden."
Sarnaik also announced that the MSRTC is taking special measures to improve accessibility for the tribal population of Maharashtra. He highlighted that operating standard 11 to 12 meter long buses in the remote, hilly terrain. He said that to overcome this issue, MSRTC plans to deploy 50 mini-buses that will be specifically designed for remote and hilly areas. He said that even though these services may not be viable financially, yet they are planning to bear the operational losses. He said that transportation is a basic right and the government will ensure that tribal people are not left behind.
These proposed changes are a part of a larger restructuring plan that involves modernising of buses, procurement of new buses, rationalization of routes, digitization of operations, and potential public-private partnership to improve the services.