MSRTC Chairman Mandates Urgent Reforms to Tackle Rs 591 Crore Annual Loss
In a decisive move to address mounting financial challenges, Maharashtra State Road Transport Corporation (MSRTC) chairman Pratap Sarnaik has issued a stern directive for implementing concrete, time-bound measures aimed at reducing losses in the upcoming 2025-26 financial year. The chairman emphasized the critical need for tighter transport planning, stronger administrative control, and enhanced accountability across all divisions during a high-level meeting held on Tuesday.
Alarming Financial Figures Reveal Daily Loss of Rs 1.6 Crore
According to detailed figures presented at the meeting, MSRTC recorded operational revenue of Rs 11,475 crore in the current financial year, while expenditure soared to Rs 12,066 crore, resulting in a substantial loss of Rs 591 crore. Breaking down these numbers further, the corporation's daily average revenue stands at Rs 31.40 crore against daily expenditure of Rs 33 crore, translating into a concerning daily loss of approximately Rs 1.6 crore.
Only Eight Divisions Profitable Among Thirty-One
A particularly troubling revelation from the meeting was that of MSRTC's thirty-one operational divisions, only eight are currently generating profits, while twenty-three are running significant losses. The profit-making divisions identified during the previous financial year include Jalna, Parbhani, Buldhana, Bhandara, Gadchiroli, Akola, Dhule, and Wardha.
Sarnaik expressed serious concern over the widening losses in major divisions such as Nashik, Kolhapur, Nagpur, Ratnagiri, Satara, and Thane, stating that these require immediate and comprehensive corrective action to prevent further financial deterioration.
Strategic Focus on Optimal Resource Utilization
"In the coming financial year, it is absolutely essential to make optimal use of available buses and manpower through proper transport planning," Sarnaik declared. "Our primary objective must be to recover the remaining daily loss of Rs 1.5 to 2 crore through strategic interventions and improved operational efficiency."
The chairman has instructed officials to conduct thorough, in-depth inquiries into all loss-making divisions to identify the specific reasons behind their poor performance. Following these investigations, division-specific corrective measures will be implemented to address unique challenges and opportunities within each operational area.
Leadership and Administrative Reforms Prioritized
Sarnaik also indicated that the government would focus on appointing capable and efficient officers in large divisions that have consistently posted losses, recognizing that leadership quality directly impacts financial performance. He expressed particular displeasure over the appointment of a divisional controller without adequate functional authority in Nagpur, a major division that has been incurring losses for the past two consecutive years.
"Officers who lack financial and statutory powers cannot exercise effective control over administration," Sarnaik emphasized. "Therefore, it is necessary to provide alternative postings to such officers and ensure capable leadership is established in critical positions to drive positive change."
Comprehensive Reform Framework Under Development
The chairman announced that a comprehensive reform framework will be introduced shortly, focusing on three key pillars: administrative discipline, effective utilization of resources, and enhanced accountability mechanisms. This framework aims to strengthen MSRTC's financial position through systematic improvements across all operational aspects.
The directive comes at a crucial time as public transportation systems nationwide face increasing pressure to balance service quality with financial sustainability. MSRTC's proactive measures could serve as a model for other state transport corporations grappling with similar challenges.
