Explained: Why MP Does Not Have RTC and What It Means for Public Transport

The question “why MP does not have RTC” is a valid concern, especially for citizens and travelers who depend on affordable public transport. Unlike most Indian states that run their own State Road Transport Corporations (RTCs), Madhya Pradesh (MP) is an exception.

The state once had its own RTC—Madhya Pradesh Road Transport Corporation (MPRTC)—which was shut down in 2005. But instead of reviving it or replacing it with a similar model, MP continues to operate without a state-run transport body.

So, the real reason why MP does not have RTC today lies in a mix of policy decisions, economic constraints, and legal challenges, rather than just history.

Also Read: How MSRTC’s Losses Mount to ₹3 Crore a Day – What’s Next?

Main Reasons Why MP Does Not Have RTC

1. Severe and Unrecoverable Financial Losses

One of the primary reasons why MP does not have RTC is the massive financial losses faced by its former state-run transport body (MPRTC).

• By 2005, MPRTC had accumulated losses of ₹756 crore, making it financially unsustainable.
• Continuous revenue deficits and a lack of government subsidies made recovery nearly impossible.
• The state decided that reviving or continuing the RTC was not economically viable.

Summary Table: MPRTC Financial Collapse

2. Legal and Administrative Barriers Post-Dissolution

Another major reason why MP does not have RTC is the legal hurdles that emerged after MPRTC was dissolved.

• Once MPRTC was shut down, its assets, staff, and liabilities became entangled in legal disputes.
• These include court cases related to pensions, unpaid salaries, and asset ownership.
• Due to this, forming a new RTC under similar conditions is legally complicated and administratively risky.

3. Strategic Shift Towards Private Partnership Models

Instead of setting up a new RTC, the MP government has chosen not to reintroduce a public transport corporation. Here’s why:

• The state is following a Public-Private Partnership (PPP) model.
• The government acts as an aggregator, allowing private operators to run buses under state guidance.
• This model avoids the financial burden of running a government corporation while providing flexibility and competition.

4. Lack of Political Will and Public Demand

Lastly, political priorities and public sentiment have also influenced why MP does not have RTC:

• Unlike in states like Maharashtra or Tamil Nadu, there hasn’t been strong political or public demand to bring back RTC.
• City-level transport bodies in Bhopal and Indore are seen as sufficient for urban needs.
• Intercity bus services are mostly managed by private players, and there’s no major crisis pushing for state intervention.

Current Public Transport Scenario in Madhya Pradesh

In the absence of a state-run RTC, Madhya Pradesh has adopted alternative models to meet public transportation needs:

• Private Operators: Private bus operators have filled the void, offering services across various routes within and outside the state.
• Urban Transport Initiatives: Urban centers like Bhopal and Indore have established city-specific transport services, such as Bhopal City Link Limited and Atal Indore City Transport Service Limited, to manage intra-city transit.

Also Read: Six Innovative Initiatives by KSRTC That Can Inspire Other State Transport Undertakings

Proposed Public Transport Model

Recognizing the need for a structured public transport system, the Madhya Pradesh government plans to introduce a new model within a month.

This initiative involves the government acting as an aggregator, collaborating with private companies to operate bus services. The proposed framework includes:

• Centralized Oversight: Establishing a central company at the state level, with subsidiary entities at divisional levels, to oversee operations.
• Government Facilitation: The state will determine routes, set fare structures, and provide subsidies to ensure affordability and inclusivity, particularly benefiting students and women.

This approach aims to balance governmental oversight with private sector efficiency, potentially revitalizing public transportation in the state.