MSRTC Earns ₹56 Crore From Scrap Bus Sales As Centralised Auctions Boost Returns

Mumbai: The Maharashtra State Road Transport Corporation (MSRTC) has earned ₹56 crore from the sale of 1,473 scrap buses, with a shift to centralised auctions helping it secure nearly ₹1 lakh more per bus than the earlier system of selling vehicles department-wise.

Average realisation reaches ₹3.80 lakh per bus

The buses, each more than 15 years old, were sold in July through Registered Vehicle Scrapping Facilities (RVSFs). Officials said the centralised process attracted more bidders and resulted in better competition and prices. The average realisation was around ₹3.80 lakh per bus.

MSRTC operates through 31 divisions and 251 depots and has a fleet of around 14,500 buses. Every year, nearly 2,000 to 2,500 buses complete their service life and are sent for scrapping. Earlier, individual divisions conducted separate sales, a process that took longer and often failed to generate competitive prices.

New system improves disposal process

The corporation adopted centralised sales through RVSFs to address these shortcomings. Officials said the improved returns could encourage MSRTC to continue with the model for future scrap bus sales.

The additional revenue comes at a time when the state transport undertaking is looking for ways to improve its finances. Shrirang Barge, general secretary of Maharashtra ST Karmachari Congress, said savings in smaller areas, along with better use of revenue-generating opportunities, could help reduce MSRTC's losses.

The move also highlights how better management of existing assets can generate additional income for a financially stressed public transport undertaking. With thousands of buses expected to reach the end of their service life in the coming years, MSRTC is likely to continue exploring centralised disposal mechanisms to maximise returns from its scrap fleet.

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