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In an effort to revive the loss making, Maharashtra State Road Transport Corporation, the State Government has decided to pump in Rs 570 crore on Friday. The State Cabinet would be soon expected to approve this decision.
The Maharashtra State Road Transport Corporation (MSRTC), has been reeling under severe financial stress for the past 10 years due to ageing fleet, subsidised fares, competition from private players and operation losses.
However, the buses provided essential connectivity to even the most inaccessible areas of the State.
Similar to the suburban Railways in Mumbai, the MSRTC buses, which are popularly called ST buses, are the lifeline of rural Maharashtra.
The decision to provide to funds was taken by the Finance Minister of Maharashtra, Ajit Pawar at a meeting with the management of MSRTC.
Pawar, also asked the management to reduce passenger tax on rural fares, which today stands at 17 per cent to 10 per cent.
A senior MSRTC official told Business Line that that new tax would be ring fenced and used only for improving passenger services.
Efforts are also on to exempt MSRTC buses from paying toll on plazas, which are managed by contractors appointed by Central Government.
Soon the MSRTC will approach the Centre for getting the exemption. But the Centre is unlikely to heed to the demand because similar exclusion would be sought by other state transport corporations, the official said.
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