The Maharashtra State Transport Corporation (MSRTC) has reported a profit of ₹16.86 crore in August, marking its first profitable month in nearly a decade. After years of severe financial distress, largely exacerbated by the Covid-19 pandemic and a prolonged employee strike, this turnaround comes as a significant milestone for the state-run corporation. The latest figures highlight a positive shift in the fortunes of MSRTC, which had been facing a potential shutdown just two years ago.
The surge in revenue is largely attributed to a substantial increase in passenger numbers, driven by the state government’s recent initiatives. Notably, two schemes played a crucial role in this financial recovery free travel for citizens aged 75 and above and a 50% concession on tickets for women passengers. As a result of these measures, MSRTC witnessed a substantial rise in daily ridership, averaging 54 lakh passengers. According to MSRTC’s Public Relations Officer, 20 out of the corporation’s 31 departments turned profitable last month. Madhav Kusekar, MSRTC’s Vice-Chairman and Managing Director, lauded the efforts of the employees and acknowledged the impact of strategic interventions over the past year.
He congratulated the workforce for their dedication, which has been pivotal in achieving this financial turnaround. The financial recovery follows a period of significant challenges for MSRTC. The corporation was severely affected by the Covid-19 pandemic, which caused a sharp decline in passenger traffic and revenue. Additionally, a six-month strike by employees in 2021 further strained its financial position, raising concerns about its viability. However, since May 2022, the state-run corporation has undertaken a series of strategic measures to stabilize its operations and reverse the downturn.
Among the key initiatives was the “Hinduhridaysamrat Balasaheb Thackeray Swachh, Sunder Bus Stand Abhiyan,” which aimed to improve the condition of bus stands across the state. The corporation also launched schemes like direct passes for school students, Pravasi Raja Day, Workers’ Parents Day, and ST Sanghe Teerthatan in Shravan, aimed at increasing engagement with both passengers and employees. Furthermore, departmental heads were guided to address chronic losses, with regular meetings at district and taluka levels to realign operations.
Another significant step was optimizing bus routes and fleet management. The number of buses in operation was strategically reduced from 12% to 6%, focusing on profitable routes and discontinuing services on underperforming routes. These measures, along with fuel-saving initiatives, contributed significantly to cost reduction and revenue enhancement. Despite the recent success, challenges remain. Last week, MSRTC employees launched another strike, demanding a salary hike. The strike was called off after two days, following an intervention by Chief Minister Eknath Shinde, who assured that a ₹6,500 hike in basic salary would be implemented for MSRTC employees.
The profit of ₹16.86 crore in August represents a hopeful sign for MSRTC’s future. However, sustained profitability will depend on continued strategic management, cost control, and government support. With passenger numbers increasing due to favourable policies, MSRTC is poised to consolidate its recovery, but it must navigate labour concerns and operational challenges to maintain this positive momentum.
