MSRTC Proposes Fare Increase Amid Financial Struggles
The Maharashtra State Transport Authority (STA) is poised to reconvene on Thursday after a 30-month hiatus, a delay that has left several vital regulatory matters unresolved. At the forefront of the discussions is the Maharashtra State Road Transport Corporation’s (MSRTC) proposal to increase passenger fares by 14-15 percent, a move aimed at addressing its daily financial losses, which currently amount to between ₹2 crore and ₹3 crore.
The MSRTC, which operates the largest bus network in India with a fleet of 15,000 buses, had put forward this fare hike proposal under the Automatic Fare Revision Formula (AFRF) last year. This formula is designed to adjust bus fares in response to rising operational costs, ensuring that the corporation remains financially viable. If approved, this fare increase would provide much-needed financial relief to MSRTC, which serves over 55 lakh passengers daily across Maharashtra. The last fare hike, a 17.17 percent increase, was implemented on 26th October 2022, following the STA’s last meeting in 2022. Despite its critical role in the state’s public transport system, MSRTC has struggled with outdated fare structures and growing operational costs, making such fare revisions necessary for its survival.
The outcome of the STA’s Thursday meeting is expected to determine whether the proposed fare increase will be implemented, which will have far-reaching implications for Maharashtra’s public transport system. The STA is legally required to meet at least twice a year under the Maharashtra Motor Vehicles Rule of 1989, but its last meeting was held in October 2021, leaving a significant gap in regulatory oversight. Transport Secretary Anil Kumar, who assumed office in February 2024, has yet to convene any STA meetings during his tenure, drawing criticism from both officials and experts for the delay in addressing pending matters. These issues include the renewal of motorcycle rental licenses, inter-state cab permits, and discussions on the All India Tourist Vehicles (Authorization and Permits) Rules, 2021. Stakeholders are closely watching the outcome of Thursday’s meeting, as the decisions made could significantly impact the future of MSRTC and public transport across the state. The failure to resolve financial challenges and meet statutory requirements has raised concerns about the long-term sustainability of Maharashtra’s public transport infrastructure.
