Maharashtra ST Cuts Diesel Costs, ₹241 Crore Annual Savings Through New Tender Process

The Maharashtra State Road Transport Corporation is taking significant steps to improve its financial health, with a projected annual saving of ₹241 crore from diesel procurement alone. The move comes as part of a broader strategy to reduce operational costs while building new revenue streams.

The savings have been made possible through a revised and competitive tender process for diesel procurement, aimed at securing better pricing without external influence.

Mounting Losses Drive Urgent Reforms

The corporation continues to face severe financial strain, with cumulative losses estimated at around ₹12,000 crore. In the current financial year, losses have already reached approximately ₹750 crore by the end of February 2026.

Daily expenditure continues to exceed income by ₹1 to ₹2 crore, making it clear that relying solely on ticket revenue is no longer sustainable. This has pushed the organisation to rethink its financial model and explore alternative income avenues.

Higher Discounts Bring Big Savings

The revised procurement strategy has significantly improved diesel discounts. While earlier discounts stood at around ₹2.70 to ₹3 per litre, the new competitive bidding process has secured a discount of ₹5.13 per litre.

With an annual diesel consumption of nearly 40 crore litres and a yearly expense of about ₹3,400 crore, the improved rate is expected to generate substantial savings. With plans to add 8,000 new diesel buses, fuel costs could rise further, making such savings even more critical.

New Revenue Streams in Focus

To strengthen its financial base, the corporation is also targeting additional income sources. A revenue target of ₹250 crore has been set through advertising and diesel savings in the current financial year.

In addition, plans are underway to set up multi modal fuel stations across 100 to 110 locations under a public private partnership model. These outlets will cater to diesel, petrol, CNG, LNG and future electric vehicle charging needs, with an estimated annual income of ₹100 crore.

Tech Driven Monitoring to Plug Leakages

The corporation is also introducing technology driven solutions to improve efficiency. Artificial intelligence based sensors will be installed in fuel tanks and dispensing systems to monitor usage and prevent leakages or irregularities.

These combined measures reflect a broader effort to modernise operations, reduce losses, and steer the state transport body towards a more sustainable future.