Mumbai: Amid growing global concerns over fuel supply disruptions due to the ongoing conflict in West Asia, Transport Minister Pratap Sarnaik on Friday assured that the Maharashtra State Road Transport Corporation (MSRTC) has sufficient diesel reserves and will not face any immediate shortage for at least the next two months. However, he admitted that the state-run transport body currently has no contingency plan in place if the crisis prolongs and supply chains are hit.
No Immediate Crisis
Addressing the media in Mumbai, Sarnaik said that while the broader energy situation remains uncertain due to geopolitical tensions in the Gulf region, the corporation continues to receive uninterrupted diesel supply. “At present, we are not facing any fuel shortage. The supply of diesel is stable, and our operations are running smoothly,” he said.
He explained that senior officials from MSRTC had held discussions with Indian Oil Corporation, which confirmed that fuel allocation is being prioritised by the central government. As per the current system, defence services receive top priority, followed by the railways, and then state transport undertakings like MSRTC. This structured allocation mechanism ensures that public transport services remain unaffected in the short term.
Procurement Savings
MSRTC, which operates a vast fleet of approximately 15,800 buses across Maharashtra, consumes around 10.87 lakh litres of diesel, amounting to nearly 40 crore litres annually. The current fuel expenditure stands at approximately Rs 3,400 crore per year. With the planned addition of 8,300 new diesel-powered buses, this cost is expected to rise sharply to around Rs 4,700 crore.
In a significant development aimed at reducing operational costs, Sarnaik announced a new diesel procurement arrangement that is expected to save the corporation about Rs 241 crore annually. Under this agreement, Indian Oil Corporation has offered an average discount of Rs5.13 per litre, marking the first time MSRTC has secured such a substantial price reduction.
Currently, MSRTC is grappling with severe financial stress, with accumulated losses touching Rs12,000 crore. In the ongoing financial year alone, the corporation has reported losses of nearly Rs 750 crore till February.
Fuel Retail Diversification
To address this, MSRTC has outlined an ambitious roadmap to boost revenue and improve efficiency. The corporation aims to generate Rs 250 crore through advertisements by leveraging its extensive network of 251 depots and over 600 bus stations, which collectively cater to 50–55 lakh passengers daily.
In a major diversification initiative, MSRTC is set to enter the fuel retail business by establishing 100–110 multi-modal fuel stations under a public-private partnership model. These stations will offer diesel, petrol, CNG, LNG, and EV charging facilities, and are expected to generate around Rs 100 crore annually.
Additionally, the corporation plans to deploy AI-based sensors at fuel pumps to curb leakages and irregularities, which currently result in losses of 4–5 litres per 100 litres of fuel. Renewable energy initiatives, including rooftop solar installations at depots and bus stations, are also being rolled out, with estimated savings and revenue generation of Rs 10–15 crore annually. Surplus solar power will be sold to Maharashtra State Electricity Distribution Company Limited.
Sarnaik said that the focus remains on financial discipline, transparency, and self-reliance. He added that MSRTC will introduce AI-driven staff duty management systems, dispose of non-performing assets, and implement additional reforms aimed at generating at least Rs 500 crore in additional revenue in the coming financial year.
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