Maharashtra Transport Minister Pratap Sarnaik To Release White Paper On MSRTC's Financial Crisis

Mumbai: Maharashtra Transport Minister Pratap Sarnaik is set to release a white paper on Monday detailing the current financial condition of the Maharashtra State Road Transport Corporation (MSRTC), commonly known as ST. The report is expected to shed light on the corporation’s mounting losses, total revenue, expenditure, outstanding loans and pending dues.

ST, which operates over 14,000 buses across and outside Maharashtra, is reportedly running at a daily loss of Rs 1–2 crore. Its accumulated losses have now crossed Rs 10,000 crore. According to transport department officials, the white paper aims to present a transparent account of the financial distress and outline a roadmap for recovery.

Maharashtra: MSRTC Faces ₹3 Crore Daily Loss Due To Bus Fare Concessions, Transport Minister Pratap Sarnaik Rules Out New Discounts

In a bid to enforce financial discipline, the government has mandated that any proposal involving expenditure of Rs 1 crore or more must receive prior approval from the Transport Minister. The move, officials claim, is designed to ensure timely disbursement of employee salaries, which have faced delays due to financial strain.

ST has been facing continuous losses for several years, with the only notable profit recorded in August 2023, Rs 16.08 crore, marking the first such instance in the last nine years. At present, around Rs 3,500 crore in employee dues remain unpaid, while pending payments for materials and infrastructure works amount to an additional Rs 7,000 crore, reported Loksatta.

Despite a 14.95 per cent fare hike implemented in March 2024 to mitigate losses, the corporation remains financially strained. ST continues to offer concessional travel to 31 categories of passengers, including students, senior citizens, women, and differently-abled individuals. In return, the government provides Rs 350–400 crore in monthly compensation, though approximately Rs 1,000 crore in these dues remain pending.

Maharashtra Transport Minister Pratap Sarnaik Hospitalised In Thane Following Body Pain & Fever

Corrective Measures To Be Proposed To Tackle Ongoing Crisis

To address the ongoing crisis, the white paper will also propose short and long-term corrective measures. These include trimming long-distance routes, increasing revenue from advertisements, activating commercial arms of the corporation, utilising vacant ST depot lands, and incentivizing employees to boost earnings.

Highlighting the dire need for reforms, Minister Sarnaik took direct control of financial decisions in his capacity as chairman of the corporation. He has issued orders that all major financial proposals , including contract approvals, deadline extensions, and procurement , must receive his sanction.

While employees have welcomed this step to ensure timely salaries, unions have demanded that the government ensure long-term implementation and fulfil pending provident fund and gratuity contributions withheld due to lack of funds.

Sarnaik who was admitted to Thane's Jupiter hospital last week was discharged yesterday at night. He was hospitalised on June 18 after complaining about fever and body pain. "Thank you to everyone who expressed concern about my health. I was discharged from Jupiter Hospital, Thane today. After taking some rest as per the doctor's advice, I will be ready to serve the people with renewed vigor. May your support always remain like this," wrote Sarnaik in a post on X.