Maharashtra State Road Transport Corporation (MSRTC) is grappling with a worsening financial crisis, as its daily revenue continues to fall short of targets—raising alarm bells about the future viability of the state-run transport service.
According to MSRTC Workers’ Union General Secretary Shrirang Barge, a review of earnings for the first five days of August shows a staggering daily shortfall of over Rs 5 crore. While the corporation was expecting to generate Rs 32.36 crore in daily income following a fare hike earlier this year, the average daily earning has been hovering around Rs 27 crore.
“This is one of the largest deficits we’ve seen in four decades,” stated Barge in a written note issued by union, calling the situation a “red alert” for the organization. With accumulated losses now crossing Rs 10,000 crore, the MSRTC’s financial health appears to be in dire straits.
Peak Season Fails to Deliver
The months of June and July, which traditionally bring in higher passenger traffic following summer vacations, also failed to boost revenues. This continuing trend of declining income has left the MSRTC unable to meet its operational costs, even during what should have been its most profitable season.
Barge criticized the corporation's management for failing to address the root causes behind the sharp decline in ticket sales. “Blaming the drop in revenue solely on reduced passenger numbers is a sign of administrative inefficiency,” he said, adding that no effective remedial steps have been taken in the past month and a half despite the continuing revenue slide.
Mounting Employee Grievances
Financial stress isn’t limited to the corporation’s books—it is also deeply affecting its employees. Workers union leader alleged that around Rs 2,500 crore, which had been deducted from staff salaries towards Provident Fund and Gratuity, has yet to be deposited in the respective trusts. With the Ganesh festival approaching, the corporation is reportedly unable to provide advances to employees.
"Currently, monthly salaries are being disbursed using compensation funds allocated by the government for concessional travel, a move Barge described as “a temporary patch on a deep financial wound.” alleged Barge
Adding to the strain, employees have yet to receive pending payments for dearness allowance and salary revisions. With inflation continuing to rise, staff members are struggling to manage basic expenses.
A Call for Accountability
Workers union leader emphasized that while financial assistance from the state government is critical, MSRTC must also adopt proactive measures to boost its revenue and ensure sustainability. “Unfortunately, no such initiatives are visible. The management seems helpless and inactive,” he said.
He urged citizens to hold the administration accountable for the current state of affairs, warning that without immediate intervention, the MSRTC—the “lifeline of the common people”—may be pushed to the brink of collapse.
The Maharashtra State Road Transport Corporation (MSRTC) is widely regarded as the lifeline of the state. On average, nearly 55 lakh passengers rely on MSRTC buses each day for their commute. The corporation plays a crucial role in connecting over 90 percent of the state's villages to district headquarters, schools, hospitals, and major cities, ensuring essential access to public services and infrastructure across Maharashtra.
