The Maharashtra State Road Transport Corporation (MSRTC)’s electric bus project, launched under a rental agreement, is reportedly facing significant financial losses, according to allegations made by the workers' union. The union has urged the state government to appoint an expert committee to assess the project’s feasibility and decide whether it should continue or be terminated.
Srirang Barge, General Secretary of the union, revealed that the project is incurring an average loss of Rs 20 per kilometer per bus. With 168 electric buses currently in operation and plans to expand the fleet to 5,150, the financial burden could escalate significantly.
Under the current agreement, each bus must meet a daily operational target of 325 kilometers. However, even if the buses fail to meet this target, the MSRTC is obligated to pay a guaranteed amount. This results in a daily expenditure of Rs 3.25 crore, which translates to potential monthly losses exceeding Rs 100 crore and annual losses surpassing Rs 1,000 crore.
Barge raised concerns over the high rental rates for electric buses in Maharashtra compared to those in other states. The rates currently stand at Rs 58 per kilometer for 9-meter-long buses and Rs 68 per kilometer for 12-meter-long buses. He has called for an inquiry into the pricing structure, citing potential discrepancies.
The union also flagged alleged irregularities in a recent tender for 1,310 rental buses, claiming that last-minute changes to the tender terms appeared to favor specific contractors, which could worsen the financial strain.
Barge appealed to Maharashtra Chief Minister Devendra Fadnavis to intervene and initiate a comprehensive investigation into the project. He emphasized the urgency of addressing the mounting losses and ensuring transparency in the tendering process to safeguard MSRTC’s financial health.
“The projected losses from this initiative are deeply concerning. A detailed review of rental rates and the tendering process is essential to ensure the corporation's long-term sustainability,” Barge stated.
