In an effort to revive the loss making, Maharashtra State Road Transport Corporation (MSRTC), the State Government has decided to pump in INR 570 crore on Friday. The State Cabinet would be soon expected to approve this decision.
The 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.
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% to 10%.
New tax would be ring fenced and used only for improving passenger services, said a senior MSRTC official.
Efforts are also on to exempt MSRTC buses from paying toll on plazas, which are managed by contractors appointed by Central Government.
The official said that 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.