In a move that will likely be welcomed by commuters in Maharashtra, the Maharashtra State Road Transport Corporation (MSRTC) has scrapped its planned 10% passenger fare hike, which was set to be implemented between October 25th and November 24th. This decision comes ahead of the crucial Maharashtra assembly elections, suggesting a potential link between the fare hike reversal and the political landscape.
The proposed fare increase was intended to generate approximately ₹ 70-80 crore in revenue for the cash-strapped state transport body. However, a senior MSRTC official revealed that the state secretariat, Mantralaya, rejected the corporation’s recommendation for the fare hike despite the usual practice of allowing such increases during festive seasons.
While the MSRTC chairman, Bharat Gogawale, had initially signed off on the proposed fare hike, the Mantralaya’s decision ultimately halted the implementation. The official attributed the cancellation to the upcoming Diwali festival, during which MSRTC is obligated to pay ₹ 40 crore in bonuses to its employees.
This decision leaves MSRTC facing a significant financial burden, especially considering the need to settle outstanding staff dues as well. The corporation’s fleet of 15,000 buses transports over 55 lakh passengers daily, making it one of the largest public transportation networks in India.
The cancellation of the fare hike comes amidst a broader context of rising public transport costs and the MSRTC’s ongoing financial struggles. The corporation has been grappling with financial challenges for some time, with its employees engaging in protests demanding better working conditions and improved pay. The upcoming assembly elections have undoubtedly added another layer of complexity to the situation, prompting a focus on public sentiment and the impact of policies on voters.
The decision to reverse the fare hike highlights the delicate balance between generating revenue for public services and ensuring affordability for commuters. It also serves as a reminder of the significant financial challenges faced by public transport bodies, particularly in a time of economic uncertainty and rising inflation.
