Ahead of Assembly polls, MSRTC withdraws passenger fare hike move for Deepavali season

MSRTC cancels 10% fare hike for Deepavali, providing relief to passengers and facing financial burden.

“The Maharashtra State Road Transport Corporation (MSRTC) on Monday (October 14, 2024) cancelled the proposed 10% fare hike scheduled to be implemented during the Deepavali season,” officials said.

The fare hike cancellation, announced ahead of the Assembly elections, is a huge relief for passengers opting to travel in State transport buses during the festive season. The MSRTC decision coincides with Chief Minister Eknath Shinde announcing an exemption from paying the toll to light motor vehicles entering Mumbai.

Initially, the revised fare was supposed to come into effect between October 25 and November 24 which could have fetched the cash-strapped transport body a revenue of ₹70 crore to ₹80 crore.

“The State-owned public transport corporation had already issued a circular to all regional heads asking to stop the implementation of the proposed fare hike,” the official said.

Traditionally, the MSRTC is allowed by the State government to raise the fare during the festive season every year and the hike typically translates into 10%.

A senior MSRTC official said the corporation's newly-appointed chairman Bharat Gogawale recently signed a proposal for the scheduled hike in fare. The recommendation was, however, turned down by Mantralaya, the State Secretariat.

"The cancellation of the proposed fare revision will put a financial burden on MSRTC as it has to pay ₹40 crore in bonus to eligible employees before Deepavali, apart from settling staff dues," he said.