Maharashtra Transport Authority To Review MSRTC Fare Revision Proposal Amid Daily Losses

The Maharashtra State Transport Authority (STA) is set to meet on Thursday after a prolonged gap of 30 months, during which key proposals and regulatory matters have remained unresolved. Officials have indicated that the meeting may approve the Maharashtra State Road Transport Corporation’s (MSRTC) proposal to increase passenger fares by 14 to 15 per cent to offset substantial daily losses of Rs 2 to 3 crore.

The MSRTC had proposed the fare hike last year under the Automatic Fare Revision Formula (AFRF), designed to adjust fares in response to rising operational costs. The transport authority’s last meeting in 2022 had approved a 17.17 per cent fare hike, implemented on October 26, 2022.

Largest Bus Network in India

MSRTC operates a fleet of 15,000 buses, catering to over 55 lakh passengers daily across Maharashtra. However, financial losses and an outdated fare structure have necessitated urgent action. The fare hike, if approved, would provide much-needed relief to the corporation.

Failure to Meet Statutory Requirements

Under the Maharashtra Motor Vehicles Rule 1989, the STA is mandated to meet at least twice a year. However, no meetings have been held since October 2021. The last meeting, chaired by then Transport Secretary Ashish Kumar Singh, was held on October 27, 2021.

Transport Secretary Anil Kumar, who assumed office on February 26, 2024, has not convened any meetings during his tenure, a lapse criticized by officials and experts. Pending matters include the issuance and renewal of motorcycle rental licenses, inter-state cab permits, and discussions on the All India Tourist Vehicles (Authorization and Permits) Rules, 2021.

Calls for Accountability

A retired transport official highlighted the statutory obligation of the transport secretary to convene meetings every six months. "It is the responsibility of the additional transport commissioner to ensure the secretary schedules these meetings," he said, emphasizing the importance of STA in regulating transport infrastructure, legal compliance, and safety standards.

The outcome of Thursday’s meeting is crucial for MSRTC and the state’s transport system, with stakeholders eagerly awaiting decisions that could shape the future of public transportation in Maharashtra.