Shifting Gears: Loss-Making MSRTC To Venture Into Retail Fuel Sale To Drive Up Revenue
The corporation has been procuring diesel from public sector oil companies like Indian Oil and Bharat Petroleum for over 70 years.
The Maharashtra State Road Transport Corporation is set to venture into retail fuel sale, a Cabinet minister said on Friday as the loss-making body looks to create new revenue streams.
Transport Minister and MSRTC chairman Pratap Sarnaik said the project will be implemented through a joint business partnership between central and state governments.
The corporation's financial situation is precarious, and relying solely on passenger ticket sales is not viable. Therefore, creating new revenue streams is essential, Sarnaik was quoted as saying in a news release issued by his office in Thane, from where he is an MLA.
The corporation has been procuring diesel from public sector oil companies like Indian Oil and Bharat Petroleum for over 70 years.
The MSRTC has already established 251 fuel stations at its own locations, which currently cater only to its buses. After getting experience in operating and maintaining these pumps, the corporation plans to leverage this expertise to set up new retail fuel outlets, said the release.
The state-run corporation will enter into a business partnership with oil PSUs like Indian Oil, Bharat Petroleum, and Hindustan Petroleum. This partnership will enable the corporation to set up gasoline outlets at strategic locations, providing fuel to both its buses and the general public, it said.
The corporation plans to establish 'Petro-Motel Hubs' at suitable locations, which will not only sell fuel but also offer retail shopping facilities. This will create opportunities for other businesses and generate additional revenue for the state transport corporation, according to the release.
The business partnership between the corporation and oil companies will ensure transparent revenue distribution, as the agreement will be between central and state governments, it maintained.
Minister Sarnaik stated that this initiative will provide reliable fuel to motorists and boost the MSRTC's revenue.
Accumulated losses of the MSRTC surged to Rs 10,324 crore in FY 2023-24 from Rs 4,603 crore in 2018-19 and the state-owned body clocked profit only in eight fiscal years in the last 45 years, according to a 'white paper' released by the corporation in late June.
The MSRTC, which came into existence on June 1, 1948, is the largest such transport body in India, with a fleet of more than 15,000 buses. Daily more than 55 lakh commuters travel on its buses.
