Thane’s planned expansion of its electric bus network is exposing a difficult financial equation for the city’s public transport system. A proposal covering 180 air-conditioned electric buses projects operating and maintenance expenditure of about ₹1,096 crore over 12 years against estimated ticket income of roughly ₹666 crore. The resulting gap could increase pressure on Thane Municipal Transport and strengthen the case for a fare revision. The proposed fleet is intended for high-demand corridors and would combine 9-metre and 12-metre buses with 10 electric double-deckers. The investment would expand cleaner public transport while reducing dependence on conventional fuel-powered buses. TMT has already been adding electric vehicles, with 123 electric buses in its fleet by early 2025 and further expansion planned.
The financial challenge, however, goes beyond buying buses. Electric fleets require charging equipment, upgraded electrical connections, depot modifications and long-term maintenance. Under the proposal supplied for this project, charging and civil infrastructure at Kolshet, Kalwa and Chhatrapati Shivaji Maharaj depots would require substantial additional capital spending. The operating gap is also significant because fares have not kept pace with the cost of running urban bus services. TMT’s fare structure was last revised in 2015, while its administration has since sought a review to address rising expenditure. In its 2026-27 transport planning, TMT projected substantial civic support for its operations, highlighting the continuing dependence of the bus system on municipal finances.
A fare increase could therefore reduce the subsidy requirement, but it also creates a direct affordability question. Public buses serve students, workers, senior citizens and households that may have limited transport alternatives. A higher ticket price can improve revenue per passenger, yet it may also reduce ridership if service quality, route coverage and frequency do not improve at the same time. The economics of the new fleet will depend heavily on utilisation. Recent experience with TMT’s first electric double-decker service shows why route design matters. The service initially recorded weak passenger demand, with transport officials examining operating hours and route rationalisation. That experience suggests that adding capacity without matching buses to commuter patterns can leave expensive assets underused. There is also a strategic case for electric buses that goes beyond fare revenue. Shifting high-volume routes to electric mobility can reduce local tailpipe pollution and support lower-carbon urban transport. But the climate benefit is strongest when buses attract passengers away from private vehicles and are operated frequently enough to replace car and two-wheeler trips.
The proposed 180-bus programme should therefore be assessed on more than its headline fleet size. TMT will need transparent cost reporting, realistic ridership targets and clear service benchmarks before asking citizens to bear a larger share of the system’s costs. For Thane, financially sustainable electric mobility will depend on making each new bus both cleaner and economically productive.
