MSRTC Seeks Funding Relief Amid Electric Bus Losses

The Maharashtra State Road Transport Corporation (MSRTC) seeks Rs 3,191.42 crore in viability gap funding from the state government due to losses incurred from operating electric buses. The agency faces escalating operational costs and challenges amid its push for eco-friendly transport solutions.

The Maharashtra State Road Transport Corporation (MSRTC) is appealing for crucial financial support due to substantial losses tied to its electric bus initiative. Officials said on Friday that MSRTC is seeking Rs 3,191.42 crore as viability gap funding from the state, underscoring the challenges in eco-friendly fleet management.

Transport Minister Pratap Sarnaik disclosed that a staggering Rs 750 crore loss was recorded this fiscal year, Rs 125.5 crore of which was due to electric buses from EV Trans Private Limited under the Gross Cost Contract. With accumulative losses reaching Rs 12,000 crore, Sarnaik emphasized the urgent need for state intervention.

Sarnaik urged the state's support for VGF citing environmental goals. Despite similar ticket rates to diesel counterparts, higher operational costs led to current losses and future estimates could breach Rs 718 crore as MSRTC scales its electric fleet. Among challenges cited were consumer preferences for diesel buses and supply delays from EV Trans.

(With inputs from agencies.)