Maharashtra: MSRTC To Revamp 216 Bus Depots Under PPP Model To Cut ₹4,400-Crore Debt

Maharashtra: MSRTC To Revamp 216 Bus Depots Under PPP Model To Cut ₹4,400-Crore Debt

The Maharashtra government has drawn up a PPP plan to redevelop 216 MSRTC bus depots and boost revenue to tackle its ₹4,400-crore debt. Minister Pratap Sarnaik assured timely salaries and announced 8,000 new buses, plus conversion of 25,000 to electric. Fresh funds and commercialized depot spaces aim to pull MSRTC out of crisis while improving services.

Ramu BhagwatUpdated: Wednesday, December 10, 2025, 03:35 PM IST
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Maharashtra: MSRTC To Revamp 216 Bus Depots Under PPP Model To Cut ₹4,400-Crore Debt | Representative Image

Nagpur: The Maharashtra Transport Corporation is ready with a plan to develop its 216 bus depots across the state on private-public-participation(PPP) basis. Under the plan spaces available will be commercially exploited to shore up revenue of the corporation to meet its mounting liabilities to the tune of Rs 4400 crore and MSRTC is pulled out of red in next six months.

Assurance Given By Maharashtra Transport Minister Pratap Sarnaik

State transport minister Pratap Sarnaik gave firm assurance to concerned members of the upper house that a new plan is afoot to revamp the MSRTC so that its employees are paid salaries before 10th of every month. The poor financial of the corporation and plight of its employees was discussed during a question hour on Wednesday in the legislative council.

Shiv Sena (UBT) MLA Sachin Ahir and others raised the question on the unending woes of MSRTC and its ever-increasing liabilities, including salary dues and arrears of employees. They wanted to know when will be situation improve and if any measured were planned to meet needs of more buses.  Couple of years ago, non-payment of dues by MSRTC had led to around 100 employees committing suicide, the house was informed.

Sarnaik said that the losses had mounted over the years and that his department was now trying to get the MSRTC back on rails through various measures. He said earning revenue or profits was never a target as the service to 13 crore people of the state was the MSRTC objective.  The minister said 8000 new buses would be acquired to improve the services. Of this purchase ordered were issued for 3000 new buses to manufacturers Tata and Ashok Leyland. More importantly, 25000 existing diesel-run buses would be converted to electric in next five years.

Anil Parab of Sena (UBT) wanted to know how the revamp plan would be feasible as the MSRTC has to pay Rs 600 crore as salary and there were old unpaid dues. He warned that if retirement benefits were held up, the corporation ‘s managing director would be liable for legal action. He said the ministers was giving false assurances. Parab said the only solution for ending staff vows was to declare them as state government employees.

Sarnaik said that after he took reins, the MSRTC situation was steadily improving. There was no case of pending provident fund dues. “This Diwali we paid bonus to staff and cleared outstanding of Rs 65 crore to them.  In the supplementary budgetary demands, a provision of Rs 2800 crore would be made for MSRTC. This fresh funds and the expected revenue from re-developed depots would help the corporation in the future.

Responding to a suggestion of BJP member Shrikant Bhartiya that those wanting to voluntarily forego fare cuts given to women and senior citizens in ticket could be charged full fare to raise additional revenue, Sarnaik said  if all agreed  such an appeal could be raised. But said MSRTC was always seen as public service and never driven towards profit earning.

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