- Maharashtra State Road Transport Corporation (MSRTC) - Free Essays on Economics Maharashtra State Road Transport Corporation (MSRTC)

Essay Writing Service

Maharashtra State Road Transport Corporation (MSRTC)

1.10 Financial performance of MSRTC

It is clear that revenue from passengers was Rs 2638.77 crores in the 2002-03, which increased by 0.72 per cent in 2003-04. In the year 2004-05 revenue reflects increase significantly by 19.24 per cent, thereafter it was increased by 0.74 per cent, 9.21 per cent and 4.03 per cent in the year 2005-06, 2006-07 and 2007-08 respectively.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

In the year 2008-09, revenue from passengers increased by 12.80 per cent then, it increased by 4.45 per cent in the year 2009-10. But in 2010-11 and 2011-12 it increased by constant growth rate of 13.26 per cent and stood at Rs 5482.61 crore in 2011-12.

Revenue from other sources like rent from commercial complexes, advertisements on the buses and bus stations, etc was Rs 88.74 crores in the year 2002-03, which increase slowly and reached Rs 113.17 crores in 2007-08. Thereafter in 2008-09 to 2011-12 it shows decline trend except in 2010-11 it increased by 44.59 per cent and reached at Rs 138.81 crores. Total revenue was Rs 2727.51 crore in 2002-03 has increased significantly by 18. 80 in 2004-05 and thereafter it increased continuously and reached to Rs 5600.25 crores in 2011-12. It is conclude that share of the other revenue to the total receipts of MSRTC is less as compare to revenue from passengers.

It is seen that passengers and motor vehicle tax shows increasing trend, it was Rs 394.24 crore in 2002-03 increased to Rs 749.67 crores in 2011-12. During this period percentage of annual growth rate fluctuating between 3 per cent to 14 per cent.

Expenditure on depreciation recorded Rs 47.18 crores in 2002-03, which increased by seven times and reached to Rs 351.92 crores in 2011-12. It also seen that annual growth rate in depreciation expenditure is very high i.e. 163.03 per cent in 2008-09.

Other expenses such as toll tax, VAT, compensation for accidents, etc., even though it decline by -3.47 per cent in 2005-06 and -1.91 per cent in 2007-08. It rose continuously from Rs 2358.01 crores in 2002-03 to Rs 4439.50 crores in 2011-12.

Total expenditure shows increasing trends. It was Rs 2799.43 crores in 2002-03 to 5541.10 in 2011-12, except in the year 2005-06 and 2007-08 it declined by -1.77 per cent -0.14 per cent.

It is concluded that for four consecutive years form 2002-03 to 2005-06 MSRTC suffered a loss. It was very high in 2003-04 i.e. -205.07 crores. Thereafter MSRTC earn profit, it was high in 160.25 crores in 2007-08.

1.11 Operational Statistics of Msrtc

The following table gave the detail account on the operational statistics of Maharashtra State Road Transportation (MSRTC) during the study period from 2004-05 to 2011-12:

Table 1.2 : Operational Statistics of MSRTC

Particulars 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Average no. of passenger carried per day (lakh) 58.65 57.98














Average no. of buses owned by the MSRTC (No) 15992 15756












Average no. of buses on road per day (No) 15229 14679














Average effective kms operated per day (lakh) 49.25 47.16














Vehicle productivity (km) 307.90 299.30














Crew productivity in (km) 215.54 206.26














Average seating capacity utilisation of buses on road (% load factor ) 56.20 56.59












Bus: Staff ratio(on schedule) (as on 31 st March) 7.25 7.41














Total vehicles held 16472 15956














Source : Economic Survey of Maharashtra 2008-09 to 2011-12

It is clear from above table that the average number of passengers carried per day increased from 58.65 lakhs per day in the year 2004-05 to 71.05 lakhs per day in the year 2011-12. It is also seen that average numbers of passengers carries per day deducted in 2005-06 by -1.15 per cent and -0.56 per cent in the year 2009-10, while year 2008-08 recorded 7.38 per cent, which is highest percentage annual growth in average number of passengers carried in per day.

This average number of buses owned by the MSRTC was 15992, which declined by -1.23 per cent and -2.56 per cent in 2005-06 and 2006-07 respectively. Thereafter it increased continuously and recorded 16211 in the year 2010-11.

It is also observed that out of the total buses owned by MSRTC on an average 15229 buses were on road, which increased on an average to 15891 buses in 2011-12.

About average effective kilometres operated per day recorded 48.25 km in 2004-05, in spite of decline in 2005-06 by -4.25 km, thereafter it increase continuously and reached to 54.20 km in 2011-12.

Vehicle productivity records 307.90 km in 2004-05, which is declined by -4.25 in 2005-06 and -0.05 km in 2008-09, thereafter it increase and stood at 322.6 in 2011-12.

In case of MSRTC, its crew ratio stood between 206.26 and 225.40 only. Crew productivity shows declined trend in annual growth i.e. -4.77 and -0.2 in 2005-06 and 2009-10 respectively.

Load factor is important indicator of financial performance of passenger transport. In the study period it stood between 56.20 and 61.84 per cent, which is very low but slowly increasing. Then bus-staff ratio of MSRTC is very high in the year 2005-06 i.e. 7.41 and lowest in the year 2011-12 i.e. 6.93

1.12 Population Served By Msrtc

The following table shows that the percentage of villages and population served by MSRTC:

Table 1.3

Percentage of Villages and Population Served by MSRTC

(In percentage)

Particulars Villages Served Population Served
2009-10 2010-11 2011-12 2009-10 2010-11 2011-12
Direct 67.77 70.99 71.28 88.92 89.88 90.47
Upto 3 km 19.73 18.74 18.07 7.06 6.59 6.15
Between 3 to 5 km 7.42 6.07 6.59 2.40 2.20 2.15
Beyond 5km 5.08 3.99 4.07 1.62 1.33 1.23

Source : Economic Survey of Maharashtra 2008-09 to 2011-12

The above table shows that percentage of villages and population served by MSRTC from year 2009-10 to 2011-12. In the year 2009-10, MSRTC direct connect to 66.77 per cent villages and there were 88.92 per cent population covered by MSRTC. Besides, MSRTC served 19.73 per cent villages, 7.06 per cent population up to 3 km. 7.42 per cent villages and 2.40 per cent population covered from 3 to 5 km, while there were 5.08 villages 1.62 per cent population served from more than 5 km distance. In the year 2010-11, MSRTC direct connect in 70.99 per cent villages and total population covered population was 89.88 per cent. Up to 3 km villages covered was 18.74 per cent, population was 6.59. Villages served between 3 to 5 km 6.07 per cent and population served was 2.20 per cent. Beyond 5 km villages served was 3.99 and population served was 1.33 per cent. In the year 2011-12 MSRTC direct connect in 71.28 per cent villages and total population covered population was 90.47 per cent. Up to 3 km villages covered was 18.07 per cent, population was 6.15 Villages served between 3 to 5 km 6.59 per cent and population served was 2.15 per cent. Beyond 5 km villages served was 4.07 and population served was 1.23 per cent.

1.13 Compensation paid by msrtc

The following table shows that the compensation paid by MSRTC as per the number of accidents per annum:

Table 1.4

Number of Accidents and Compensation Paid by MSRTC

Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Number of accidents 3,269 3,450 3,220 3,204 3,407
Number of deaths 468 449 553 458 547
Number of persons injured 6,503 7,372 6,848 6,414 6,523
Rate of accidents per lakh km (in %) 0.19 0.19 0.18 0.17 0.18
On the spot payment (Rs in lakh) 20.62 26.23 26.48 25.42 31.67
Final compensations (Rs in lakh) 3,312.73 3,221.19 3,040.99 3,318.79 3,549.20

Source : Economic Survey of Maharashtra 2008-09 to 2011-12

Above table shows that Number of accidents and compensation paid by MSRTC from the year 2006-07 to 2010-12. In year 2006-07, total accidents were 3269, there were 468 deaths occurred from these accidents, and while 6503 persons were injured. In this year, rate of accidents per lakh km was 0.19 per cent. Corporation paid Rs 20.62 lakh as a spot compensation and final compensation was Rs 3312.73 lakh. In year 2007-08 total accidents was 3450, killed persons was 449 and injured persons was 7372. In this year rate of accidents per lakh km was 0.19 per cent Corporation paid on the spot compensation was Rs 26.23 lakh and final compensations was Rs 3221.19 lakh. In year 2008-09 total accidents was 3220, killed persons were 553 and injured persons were 6848. In this year rate of accidents per lakh km was 0.18 per cent Corporation paid on the spot compensation was Rs 26.48 lakh and final compensations was Rs 3040.99 lakh. In year 2009-10 total accidents was 3204, killed persons were 458 and injured persons were 6414. In this year rate of accidents per lakh km was 0.17 per cent Corporation paid on the spot compensation was Rs 25.42 lakh and final compensations was Rs 3318.79 lakh. In year 2010-11 total accidents was 3407, killed persons were 547 and injured persons were 6523. In this year rate of accidents per lakh km was 0.18 per cent Corporation paid on the spot compensation was Rs 31.67 lakh and final compensations was Rs 3549.20 lakh.

1.14Services of Msrtc

1.14.1 Ordinary Bus Service

Ordinary is a basic bus service provided by MSRTC. The buses are in red livery. The service is meant to connect entire Maharashtra together. This includes smallest of towns irrespective of the road or revenue conditions. The main motto of this service is not profit making but the service of people from masses. The buses are fairly comfortable, extremely economical and offer various concessional services for Senior Citizens, Students, War widows, and Freedom fighters and so on. This for sure one trend setting example of public service with a class and has been serving Maharashtra for ages. Major fleet of MSRTC consists of these buses.

1.14.2 Parivartan Bus Service

Parivartan is a Marathi word means ‘change’. This is the changed face of the ordinary red bus service and a successful attempt by MSRTC to offer comfortable service to masses. The buses consist of a 2×2 seating arrangement and offer better comfort. These are slowly replacing the ordinary buses from the fleet and are also responsible for ‘change’ (Parivartan) in urban people’s mind-sets about the ordinary ST bus services. The fare structure of Parivartan buses is same as that of the ordinary buses and all the concessions can also be availed.

1.14.3 Asiad Bus Service

The first ever comfortable bus service in the country meant to ferry the sports persons of the Asiad games which took place in 1982 is now become in an inevitable part of Maharashtra’s intercity transport. The Asiad is a Non AC, Semi-Luxury bus service with 2×2 seating arrangement. The Asiad service was recognised by Indira Gandhi, the Prime Minister during 1982 as this was the first Government built, owned and operated bus service offering world class comfort at that time. Later on MSRTC used these beautiful white and green buses with a blue band on their lucrative Dadar-Pune sector and got an overwhelming response from the commuters. MSRTC decided to keep the service in operation on this route and started producing more Asiad buses at their workshops. Slowly the Asiad services were introduced on other sectors. Today Asiad buses run between all the cities in Maharashtra. The Asiad livery was modified in 2010 with a shiny white paint and a purple colour. A few popular Asiad bus routes in the state are Dadar-Pune, Nashik–Pune, Sangli-Pune Station, Miraj-Nashik, Tasgaon-Pune, Aurangabad–Pune, Thane–Pune, Satara–Mumbai, Nasik–Mumbai and Kolhapur–Pune.

1.14.3 Shivneri – An Ac Bus Service

‘Shivneri’ is an Air-conditioned bus service of MSRTC between important cities. Most of the services are operated by the world class Volvo -B7R buses in a light blue livery. The services were started to Dadar – Pune in the year 1996, and now MSRTC operates Shivneri bus services on many selected routes. Currently MSRTC operates Shivneri buses on following routes in a descending order of frequency & number of services Dadar (Mumbai) – Pune (Pune Station), Borivali (Mumbai) – Pune (Swargate), Aurangabad – Pune (Shivajinagar), Thane – Pune (Swargate), Sangli – Pune Station, Pune (Swargate) – Udaipur, Borivali – Shirdi, Nashik – Pune (Shivajinagar), Mumbai (Mumbai Central) –Hyderabad, Mumbai (Mumbai Central) – Panjim (Goa), Jalgaon – Pune (Shivajinagar), Pune (Swargate) – Bangalore, Nagpur (Ganeshpeth CBS) – Pune, Kolhapur – Pune (Swargate), Nagpur (Ganeshpeth CBS)–Hyderabad, Nanded – Pune (Shivajinagar).

In future MSRTC plans for starting long hault routes like Mumbai – Bangalore, Nagpur – Aurangabad, etc. are in process.

1.14.4 Sheetal Bus Service

‘Sheetal’ is the latest entrant into the long list of bus types operated by MSRTC. These are air-conditioned semi-luxury buses with 2×2 seating arrangement. The pricing is slightly higher than the Asiad buses, but significantly lower than the Shivneri buses.These buses have been introduced only on the Dadar – Pune Station route, though there are plans to introduce them on other popular routes like Pune – Nasik, Pune – Aurangabad, etc.

1.14.5 City Bus Service

An intercity & semi-urban service arm MSRTC providing services that cater to the transportation needs of mid size and smaller towns which do not have their own transportation services MSRTC has always been known as the backbone of the rural public transport in Maharashtra, and with several new urban centres coming up, the undertaking has plans to exploit the market in theses townships.

1.14.6 Ashwamedh Bus Service

After launching Shivneri and Sheetal air-conditioned buses, the Maharashtra State Road Transport Corporation (MSRTC) has now added another AC fleet called ‘Ashwamedh” for long distance journeys. The Shivneri buses play on the Mumbai-Pune, Pune-Nashik routes and to cities like Aurangabad, Sangli and Kolhapur. The Sheetal services, on the other hand a blend of AC bus and semi-luxury buses aimed at tier II cities. Apart from being multi-axle and fully air suspension electronically controlled buses the new Ashwamedh buses are 13.8 meters long, 1.8 metres more than Shivneri and can accommodate 53 passengers, they can be used on long distance routes that involve journeys of more than 14 to 16 hours.

1.14.7 Mahabus Bus Service

‘Mahabus’ fleet of buses is a part of re-structuring program of Maharashtra State Road Transport Corporation (MSRTC) to get a fair share of the “Luxury” segment market which is mainly dominated by private operators. Though legally speaking, in Maharashtra, only MSRTC is permitted to operate stage carriage bus services; many private operators operate services under the guise of “Package tour” or “Conduct tour” using buses which have a normal “Tourist Permit” instead of the mandatory “Stage Carriage Permit”.

1.14.8 Midi Bus Service

The corporation has placed orders for buying 250 brand new midi buses, which are smaller than a normal ST bus and have just 32 seats. It will definitely serve its purpose of catering to passengers on shorter routes. Citizens will no longer depend on maxi cabs and tourist taxis as we will offer a far better service and faster comfortable travel. The midi buses would have an advantage over the normal St bus- it can ply faster in hilly areas, remote villages and on narrow roads where normal buses are difficult to operate.

1.14.9 Msrtc Daily Conducted Tours

MSRTC operate daily conducted tours by Asiad buses to the tourist destinations around Aurangabad like Ellora, Ajinta and Daulatabad wherein they also take a note of the tourist destinations in the city. Tour 1:Aurangabad CBS to Ajanta Caves, Bibi-Ka-Muqbara, Pan-Chakki and back to Aurangabad CBS Tour 2: Aurangabad CBS to Ellora Caves, Daulatabad Fort, Bibi- Ka-Muqbara, Pan-Chakki and back to Aurangabad CBS.

1.14.10 Yatra (Festivity Services)

A seasonal service targeted at travellers visiting various festivities of Maharashtra.

1.14.11 Inter State Service

State Transport also started Interstate service in collaboration with Karnataka, Madhya Pradesh, Goa, Gujarat, Andhra Pradesh and Dadara Nagar Haveli.

1.14.12 Parcel Courier Service

MSRTC buses also provide the use of their buses for shipping cargo or courier services.

1.14.13 Tours & Packages

Maharashtra State Road Transport Corporation (MSRTC) conducts different tours & packages all around India. These tours cover all the important tourist & religious places in that particular region. The tours & packages conducted by MSRTC are very reasonable & luxurious.

The MSRTC is introducing various new tours & packages for the people. Every district conducts its own tours & packages.

1.15Social Responsibility Focus

MSRTC activities to provide free travel /concession in fare to different categories of commuters to travel by its buses operating both in cities and town areas, as per the policy of State Government.

Table 1.5

Concessions on Bus Fare

Sr. No. Type of Concession % of concession
1 For students to go for Education 66.67
2 For students to go for examination 50
3 For students to go to native place 50
4 For students to go on an educational trip 66.67
5 Senior citizen 50
6 Blind persons and blind students 75
7 Cancer patients 50
8 Leprosy patients 50
9 T. B. patients 50
10 Freedom Fighters 100
11 Recognized Press Reporters 100
12 Physically Handicapped 75
13 “Dalit Mitra” Awardees 100
14 For carrying the Tiffin of students 100
15 For students to meet their parents when they are ill 50

As a part of social responsibility MSRTC gives concessions in fare from 50 per cent to 100 per cent. It is seen from above Table 1.5 that MSRTC gives 100 per cent fare concessions to freedom fighters, recognized press reporters, “dalit mitra” awardees and for carrying the Tiffin of students. Followed by 75 per cent fare concessions given to blind and physical handicapped persons. For students go for education, students educational trip MSRTC gives concessions of 66.67 per in total bus fare. While it gives concession for senior citizen, cancer, Leprosy, T. B. Patients up to 50 per cent for each category.


Most Used Categories

EssayHub’s Community of Professional Tutors & Editors
Tutoring Service, EssayHub
Professional Essay Writers for Hire
Essay Writing Service, EssayPro
Professional Custom
Professional Custom Essay Writing Services
In need of qualified essay help online or professional assistance with your research paper?
Browsing the web for a reliable custom writing service to give you a hand with college assignment?
Out of time and require quick and moreover effective support with your term paper or dissertation?