Mumbai: The Maharashtra State Road Transport Corporation’s (MSRTC) electric bus initiative, implemented through a rental agreement, has come under intense scrutiny following allegations of severe financial losses. The MSRTC workers’ union has called on the state government to constitute an expert panel to evaluate the project’s long-term viability and determine whether it should proceed or be discontinued.
Srirang Barge, General Secretary of the union, stated that the corporation is currently losing approximately Rs 20 for every kilometre travelled by each electric bus. With 168 e-buses already operational and plans underway to expand the fleet to 5,150 vehicles, the union warned that the cumulative losses could grow substantially.
According to the terms of the current contract, each electric bus must complete a minimum of 325 kilometres daily. However, even when this target is not achieved, MSRTC is still required to make guaranteed payments to private operators. This arrangement is reportedly resulting in a daily outlay of around Rs 3.25 crore, which could translate into monthly losses of over ₹100 crore and yearly losses exceeding Rs 1,000 crore, the union claimed.
Barge also raised concerns about the pricing model adopted in Maharashtra, pointing out that the state is paying higher rates than other regions. At present, the corporation is billed Rs 58 per kilometre for 9-metre-long buses and ₹68 per kilometre for 12-metre-long buses. He called for a detailed audit of the pricing structure and questioned the transparency of the tendering process.
Urging the intervention of Deputy Chief Minister Devendra Fadnavis, Barge demanded a thorough investigation into the project’s financial arrangements and procurement procedures.
“The current trajectory of losses is unsustainable. A critical review of both the rental tariffs and the selection process is essential to protect the financial integrity of the corporation,” Barge said in a statement.