Nagpur's Public Transport System Navigates Financial Challenges
The Nagpur Municipal Corporation (NMC) is currently managing a fleet of 580 city buses, with a significant financial commitment of nearly Rs 150 crore allocated as viability gap funding to ensure smooth operations. This funding was highlighted during the recent unveiling of the revised budget for 2025-26 and the proposed budget for 2026-27 by the civic transport department.
Budget Presentation and Financial Overview
Transport manager Meghna Vasanakar presented the budget before the transport committee, chaired by Mangala Khekre, emphasizing a continued focus on strengthening public transport in Nagpur. Key initiatives include the expansion of electric buses, development of modern depots, and enhancement of passenger facilities. However, the financial data reveals a heavy reliance on civic funding for the Aapli Bus service.
The revised estimate for 2025-26 projects total income at Rs 418.40 crore against expenditure of Rs 417.90 crore, indicating a relatively balanced budget for that period. In contrast, the 2026-27 proposal underscores growing financial pressures. Operational expenditure is expected to reach nearly Rs 350 crore, while revenue from ticket sales and other sources is likely to remain around Rs 190 crore. This disparity will necessitate the civic body to bridge a major deficit through municipal funds, requiring viability gap funding of Rs 150 crore to maintain smooth bus operations.
Fleet Expansion and Electric Mobility
Despite the financial strain, the department is advancing with fleet expansion. Currently, the city bus service operates 580 buses, comprising 385 electric buses, 150 diesel midi buses, and 45 mini buses. The service caters to an average of 1.61 lakh passengers daily, with over 7,000 bus trips operated every day.
Officials have reiterated that the shift towards electric mobility remains a top priority. Funds sanctioned during the tenure of former deputy chief minister Devendra Fadnavis enabled the civic body to procure 250 air-conditioned electric buses, of which 105 have already been received. Additionally, 144 air-conditioned electric buses, procured using 15th Finance Commission funds, are operational and supported by a modern charging depot at Bhandewadi.
Revenue Enhancement and Infrastructure Development
The budget proposes increasing revenue through advertisements at bus shelters and depots, along with commercial schemes to strengthen non-ticket income. Concurrently, the civic body has already spent Rs 31 crore this year on developing electric bus depots and plans to allocate Rs 35 crore in the coming financial year for further infrastructure improvements.
Officials acknowledged that the city bus service cannot survive solely on fare revenue but stressed that strengthening public transport is essential as Nagpur continues to expand and private vehicle traffic rises sharply.
Proposed Articulated Buses on Inner Ring Road
The Nagpur Municipal Corporation has proposed introducing 25 articulated buses on the Inner Ring Road to address rising passenger demand on high-traffic routes. The Centre has sanctioned Rs 152 crore under an electric mobility scheme for the procurement of these buses and related infrastructure. The civic body submitted the detailed project report (DPR) to the Centre in November last year, and approval is still awaited. Officials have not clarified the reason for the delay, despite Maha Metro expressing interest in operating services along the same corridor. Each articulated bus is expected to carry over 120 passengers in a single trip.
Bus Shelter Challenges and Future Plans
The civic transport department has admitted that a major infrastructure gap affects the city bus service. Currently, 244 modern bus shelters have been installed across the city under the Aapli Bus network. Work on another 35 shelters has been delayed due to strong opposition from residents and shopkeepers, who are preventing installations outside their properties.
In the next financial year, the NMC aims to erect 111 additional bus shelters. These shelters are being constructed on a build, operate, and transfer basis, with the department earning Rs 14,600 per bus shelter per annum, contributing to increased revenue. According to a recent NMC survey, the city still requires nearly 1,600 additional bus stops. In response to resistance, the department is now planning to install bus stop poles at several locations instead of full-scale shelters.
Infographics Summary
CITY BUS FLEET: 580 total buses, including 385 e-buses, 150 diesel midi buses, and 45 mini buses.
FINANCIALS (2026-27): Operational cost: Rs 350 crore, Expected revenue: Rs 190 crore, Viability gap funding: Rs 150 crore.
PASSENGER DATA: 1.61 lakh daily passengers, 7,000+ daily trips.
BUS SHELTERS: 244 installed, 35 pending due to opposition, 1,600 more required.
