Mumbai, Jun 23 (PTI) Accumulated losses of the Maharashtra State Road Transport Corp (MSRTC) surged to Rs 10,324 crore in FY 2023-24 from Rs 4,603 crore in 2018-19 and the state-owned body clocked profit only in eight fiscal years in the last 45 years, said a 'white paper' released on Monday.

Transport Minister Pratap Sarnaik, who is also MSRTC chairman, said possibility of the corporation coming out of huge losses anytime soon is very slim, but efforts were on to improve its financial condition as he announced induction of more buses and measures to boost revenue.

The state-owned transport corporation's accumulated losses surged to Rs 10,324 crore in FY 2023-24 from Rs 4,603 crore in 2018-19, as per the MSRTC's white paper on its financial status released in the presence of Sarnaik here.

MSRTC officials said the accumulated losses of the country's largest state-run transport undertaking is likely to rise further as the corporation has reported an unaudited loss of Rs 1,217 crore for the financial year 2024-25.

Major factors contributing to the financial crisis included a shortage of buses, frequent breakdowns due to aging vehicles, and the need to operate on loss-making routes for social obligations. Inadequate fare revisions and the impact of illegal transport operations have also reduced revenue, as per the white paper.

The corporation is considering fare concessions for long-distance passengers who currently do not receive any discounts and planning welfare schemes its employees.

Interestingly, white papers are typically demanded by opposition parties, but in case of MSRTC the document was published under an initiative taken by the transport minister. Sarnaik, who was given the key portfolio in December, directed the corporation to prepare a white paper and ensured it was released within a few months.

Before this, the Maharashtra government had released a white paper on the financial condition of MSRTC in 2014-15.

A white paper is an authoritative, in-depth report on a specific topic.

"Had the government paid attention 3-4 years back, the ST corporation would not have been in such a situation. Losses of Rs 10,000 crore is not a small amount. The possibility of overcoming these losses is quite less," Sarnaik noted.

The minister said the corporation was profitable for eight financial years in the last 45 years. In four years out of these eight, the state's current principal secretary (finance), OP Gupta, was MSRTC vice-chairman and managing director.

However, the conditions were different then and now. At the time, the corporation had more than 1 lakh employees and 18,500 buses. Now, the number of employees has come down to 87,000 and the buses to 14,500, he said.

He said MSRTC plans to induct 5,000 new buses annually, including 100 high-end Volvo buses on lease. Fuel pumps for private vehicles will be set up on MSRTC-owned land through revenue-sharing agreements with fuel suppliers. Corporation-owned assets will be developed under BOT (Build-Operate-Transfer) or PPP (Public-Private Partnership) models.

The white paper noted that as of March 2025, MSRTC owes over Rs 3,500 crore in dues, including Rs 1,262.72 crore in PF arrears, Rs 1,114.89 crore for the gratuity trust, Rs 217.19 crore in fuel supplier bills, and Rs 821.13 crore in unpaid passenger taxes.

It pointed out that between 2001-2024, the state government extended Rs 6,353.80 crore in capital assistance. During the COVID-19 pandemic and a subsequent strike by employees, Rs 4,708.73 crore in grants were provided. In the past four years, MSRTC received Rs 9,922.78 crore in government support.

MSRTC, which came into existence on June 1, 1948, is the largest such body in India, with a fleet of more than 15,000 buses. Daily more than 55 lakh commuters travel on its buses.

As per the officials, the financial data of the last 45 years was taken into consideration for preparing the white paper. During this period, the corporation was in profit only for eight financial years -- 1987-88, 1990-91, 1994-95, 1995-96, 2006-07, 2007-08, 2008-09, and 2009-10.

In 1981-82, the corporation operated an average fleet of 10,028 buses, maintained 396 bus stands, and employed 79,458 people. It transported approximately 127.52 crore passengers during that year, as per the white paper.

By the end of 2024-25, MSRTC operated an average fleet of 15,764 buses, managed 598 bus stands, and employed 86,317 personnel. During the year, it transported 213.34 crore passengers.

The document provides a clear picture of MSRTC's current financial condition and outlines possible measures for improvement.

"The white paper has been published to transparently inform people, government, employees, and other stakeholders about MSRTC's financial health," according to the corporation.

The document details upcoming policy decisions, cost-cutting steps, and plans to increase revenue and enhance passenger services.

Replying to questions from the media, the MSRTC officials said they are going to bring a GPS-based application for passengers to help them track the exact location of buses.

To reduce costs, MSRTC will introduce 5,000 LNG and 1,000 CNG buses. An ERP (Enterprise Resource Planning) system will be implemented to improve operational efficiency.

The white paper proposes deployment of 5,300 electric buses to improve passenger safety and convenience. The National Common Mobility Card (NCMC) scheme will be implemented for concessional passengers and digital ticketing will be expanded.

CCTVs will be installed for safety of passengers and measures will be introduced to reduce accidents, it said. PTI KK GK RSY

Financial distress in state transport: white paper details causes and a package of fleet, revenue and asset-monetisation reforms. MSRTC's accumulated losses reached Rs 10,324 crore in FY2023-24 with an unaudited loss for FY2024-25; causes include aging and insufficient fleet, loss-making social routes, inadequate fare revisions, and illegal competition. The white paper proposes fleet expansion (leased high-end coaches, LNG/CNG, electric buses), annual procurement targets, ERP and GPS passenger app implementation, digital ticketing and NCMC rollout, CCTV installation, welfare measures, and asset monetisation via fuel-pump revenue-sharing and BOT/PPP models to increase revenue and reduce costs.