MSRTC Will Own Buses From Now On: Says Goodbye to Private Contractors

Why in the News?

• MSRTC (Maharashtra State Road Transport Corporation) will no longer procure buses under the Gross Cost Contract (GCC) model.
• State Transport Minister Pratap Sarnaik announced that MSRTC will now own and operate its own fleet of buses.
• The announcement was made during the Commercial Vehicles Forum-2025 held in Pune.

Why will MSRTC now buy and own its own buses?

• Current GCC model involves private contractors operating buses for MSRTC, with MSRTC paying a fixed rate per kilometre.
• Due to poor execution and delays by contractors, the state is shifting toward a model where MSRTC will own buses to ensure control, efficiency, and reliability.
• A major contract signed in 2023 for 5,150 electric buses with Olectra Greentech and Evey Trans Pvt Ltd (worth ₹10,000 crore) failed to deliver—only 216 buses delivered so far.
• As a result, the MSRTC has decided to procure 5,000 self-owned buses annually. This includes:
  • 1,000 electric smart buses
  • 4,000 diesel buses
• Total target: 25,000 MSRTC-owned buses in 5 years
• The Maharashtra government will directly fund MSRTC to procure its own buses.

What happens to the delayed electric bus contract?

• Initial termination order was reversed.
• Revised delivery timeline:
  • 625 e-buses in 2025
  • 2,100 in 2026
  • Remaining in 2027

What features will the new smart buses have?

• AI-powered CCTV cameras to:
  • Detect if drivers are yawning or using phones
  • Alert passengers and trigger alarms
  • Ensure women’s safety by monitoring passenger activity
• Foam-based fire extinguishers
• Anti-theft alarms for unauthorized access when parked
  

MSRTC’s Current Fleet and Expansion Plans

• Present fleet: 15,000 buses
• 2,600 regular buses to be added by year-end
• Some old buses are to be scrapped
• The long-term goal is to completely replace third-party vehicles with a full fleet of MSRTC’s own buses.