Thane’s 180 E-Bus Fleet Faces ₹430-Crore Revenue Gap; Fare Hike Likely To Ease TMT Losses

Thane: The Thane Municipal Corporation (TMC) and Thane Municipal Transport (TMT) initiative to introduce 180 eco-friendly, air-conditioned electric buses aimed at curbing urban pollution is set to impose a severe financial strain on local citizens and municipal funds.

Looming Deficit Over 12-Year Operation Period

According to official proposals, operating and maintaining the fleet of 180 AC electric buses over a 12-year contract period will cost an estimated ₹1,096.36 crore. In stark contrast, total revenue generated through ticket sales over the same period is projected at only ₹666.11 crore, leaving a staggering deficit of hundreds of crores that TMC will ultimately have to absorb.

Annual Financial Breakdown

Annual Operational Expenditure: ~₹91.36 crore

Annual Ticket Revenue Projection: ~₹55.51 crore

Annual Operational Deficit: ~₹35.85 crore

To offset this mounting deficit, transport administrators have proposed a hike in passenger bus fares. If approved, the fare hike could reduce the annual deficit by approximately ₹19 crore, bringing the average annual losses down to roughly ₹16 crore. However, TMT fare rates have not been revised since July 2015, as past proposals to raise fares due to surging fuel prices and administrative costs were repeatedly turned down.

Fleet Breakdown and Infrastructure Expenses

Under the 15th Finance Commission’s Clean Air Action Plan, TMC was allocated a grant of ₹64.52 crore to acquire e-buses, equating to a subsidy of roughly ₹35.84 lakh per bus.

To cater to the rising demand along high-density corridors like Ghodbunder Road, the proposed 180-bus fleet comprises:

100 units: 9-meter AC electric buses

70 units: 12-meter AC electric buses

10 units: 9–10 meter AC electric double-decker buses

Beyond vehicular operational expenses, massive capital investments are required for charging stations, electrical installations, and civil works across key depots:

Kolshet Depot: ₹14 crore for electrical/charging infrastructure and ₹10 crore for civil infrastructure.

Kalwa & Chhatrapati Shivaji Maharaj (Mullabag) Depots: ₹7 crore each for electrical infrastructure and ₹5 crore each for civil works.

Administrative Pressure and Deadline Warning

During a meeting held on July 28 with the Principal Secretary of the Environment Department, serious displeasure was expressed regarding the delay in utilizing allocated funds. Authorities warned that the central grant must be used promptly via tendering, failing which the funds risk being recalled. Consequently, the municipal administration is currently scrambling to expedite the tender process to avoid losing the grant.

"The TMT fare structure has remained unrevised since July 2015, whereas our operational costs have escalated significantly—including electricity charges for our e-buses rising from ₹4.51 to ₹8.92 per unit. Operating the 180 new AC electric buses under the Clean Air Action Plan over a 12-year period involves a projected expenditure of ₹1,096.36 crore against revenue of ₹666.11 crore. To bridge this operational gap and ensure long-term service sustainability, a rationalized fare revision proposal generating approximately ₹33.48 crore annually has been framed for consideration."

— Bhalchandra Behere, Transport Manager, Thane Municipal Transport (TMT)

Administrative Statement

"While Thane Municipal Corporation is committed to expanding green public transit along major routes like Ghodbunder Road, running an eco-friendly fleet requires financial balance. The proposed fare adjustment and central grant utilization under the Clean Air Action Plan are structured to minimize the net burden on civic funds down to roughly ₹16 crore annually while maintaining reliable, modern commuting options for citizens."

— Saurabh Rao (IAS), Municipal Commissioner & Administrator, Thane Municipal Corporation (TMC)

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