Tamil Nadu Transport Corporation’s Monthly Loss Crosses ₹566 Cr
Tamil Nadu’s state-run transport corporations are facing mounting financial pressure, with a monthly loss of ₹566 crore recorded for the financial year 2024–2025 as of February.
The Tamil Nadu transport corporation’s monthly loss has reached a staggering ₹566 crore in the 2024–2025 financial year as of February, marking a slight increase from ₹531.74 crore the previous year.
Transport Minister SS Sivasankar presented these figures in the Legislative Assembly, shedding light on the deepening financial crisis in the state’s public transport sector.
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Why Is Tamil Nadu Transport Corporation Facing Such Huge Monthly Losses?
The rising Tamil Nadu transport corporation’s monthly loss can be attributed to multiple persistent issues:
- Increasing fuel prices
- High employee salary expenditures
- Rising interest payments on loans
- Outdated fare structure
One major concern is that Tamil Nadu continues to maintain the lowest bus fares in the country, with no revision since January 29, 2018, limiting revenue generation.
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Which Transport Corporations Are Impacted?
The losses are affecting all eight of the state’s major transport corporations, including:
- Tamil Nadu State Transport Corporation (TNSTC) – with divisions in Coimbatore, Kumbakonam, Madurai, Salem, Tirunelveli, and Villupuram
- State Express Transport Corporation (SETC) – managing long-distance services
- Metropolitan Transport Corporation (MTC) – operating within urban centres
These corporations are struggling to remain financially viable amid escalating costs and fixed fare limits.
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How Is the Government Responding to the Monthly Losses?
To counter the rising monthly loss of the Tamil Nadu transport corporation, the state government has announced plans to purchase 11,907 new buses, with financial support including assistance from the World Bank.
The aim is to modernize the bus fleet, improve service delivery, and attract more passengers through better infrastructure.
