‘Improve performance or face demotion’: Maharashtra government to road transport officials

2 min readPuneUpdated: Jul 2, 2026 12:27 PM IST

MSRTC officials at the depot, divisional, regional, and headquarters levels will be evaluated on measures like trip planning, passenger growth, revenue generation, local innovation, and bus utilisation. (File Photo)

The state government’s transport department has set a one-month deadline for the Maharashtra State Road Transport Corporation (MSRTC) to improve its financial performance, warning that officials could face transfers, demotions, or suspension if results don’t improve. The move comes as concern grows over the Corporation’s finances, with 21 of its 31 state divisions reporting losses following a fare increase.

Maharashtra Transport Minister Pratap Sarnaik, who is also the MSRTC chairman, while reviewing the Corporation’s performance on Monday, pointed out that “MSRTC had posted heavy losses in April and May, usually the busiest, most profitable months for the Corporation.” He noted that revenue had fallen short of projections even after the fare hike, questioning operational management and administrative efficiency.

Officials at the depot, divisional, regional, and headquarters levels will be evaluated on measures such as trip planning, passenger growth, revenue generation, local innovation, and bus utilisation. Those who fail to show measurable improvement will face disciplinary action once the review period ends.

The government has also set up a special investigation team (SIT), headed by the general manager (information technology), to look into possible misappropriation or financial irregularities.

“MSRTC is the lifeline of the common people of Maharashtra, and every official must understand the responsibility that comes with managing this public service,” Sarnaik said.

He added that the government had already cleared several long-pending financial dues owed to employees, and that the onus was now on the management and officers to translate this support into real improvement in the Corporation’s finances, rather than confining efforts to meetings and paperwork.

The minister said, “Officers who worked sincerely would have the government’s full backing, but made clear that inefficiency and inaction would not be tolerated. After one month, every official’s performance will be reviewed, and if the expected results are not achieved, strict disciplinary action, including transfers, demotions, or suspension, will be taken wherever necessary.”

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In fiscal year 2025-26, MSRTC recorded a loss of Rs 591 crore; the operational revenue realised was Rs 11,475 crore, while the expenditure was Rs 12,066 crore. MSRTC faced Rs 1.6 crore daily losses in FY 25-26.

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