The Balancing Act

By leveraging Al-powered, smart buses, MSRTC hopes to transform its operations. An aging fleet and growing losses continue to be the odds

- By Sahil Kesari

There is a crushing load on the Maharashtra State Road Transport Corporation (MSRTC). According to a recent white paper, cumulative losses climbed by 124 percent over five years, from Rs. 603 crore in FY2018-19 to Rs. 10,324 crore in FY2023-24. MSRTC has only turned profitable eight times in the last forty-five years as per an estimate. Unaudited data shows that the cumulative load increased by Rs. 1,217 crore in FY2024-25.

Operating conditions at MSRTC are an area that needs some doing. The fleet has shrunk from over 18,000 buses to about 15,560 its pensions are unpaid, and it has laid off about 86,300 employees. Even Maharashtra Transport Minister, Pratap Sarnaik acknowledged that short-term profitability is not attainable. The corporation's daily operations now face strain from both workforce shortages and outdated maintenance facilities, making routine scheduling a complex task. Add to it, MSRTC plays a crucial role in the festive season!

Maharashtra is eyeing a Rs. 2,300 crore turnover with the introduction of 3,000 buses equipped with Artificial Intelligence in the most recent initiative to turn the tide. Billed as the largest rollout of its kind in India, the big question is whether this investment will result in a recovery or just add to the costs.

LOSSES PILING UP, SAFETY EXPENDITURES ON THE RISE

The operations of MSRTC have long been beset by financial difficulties. Once a rural lifeline, the entity has been operating at a significant loss while cutting back on employee benefits and fleet size to sustain operations. Despite fare hikes and cost-cutting measures, the operational cost-revenue gap continues to widen the deficit. Fuel price volatility alone contributes to sudden spikes in operational expenses, further destabilising the budget.