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The Maharashtra State Road Transport Corporation (MSRTC) has decided to appoint a consultant to study and device a financial turnaround for the loss-making corporation, whose employees have been on a strike since the last 23 days, an official said on Friday.
In a meeting chaired by state Transport Minister Anil Parab at MSRTC Headquarters here on Thursday, KPMG, a consultancy services company, was appointed to study and suggest ways to pull out the cash-strapped corporation from the current financial situation, the official said.
Majority of employees of the corporation have been on an indefinite strike since October 28, seeking a merger of the MSRTC with the state government, which will give them the status of government employees and better salaries.
“KPMG has been appointed for an overall study of MSRTC and to suggest various measures for a financial revival of the corporation,” MSRTC’s vice-chairman and managing director Shekhar Channe said.
The consultancy firm is expected to submit its report before the end of the year, he said.
Since the outbreak of COVID-19 pandemic, the state-owned corporation is going through its worst-ever financial crisis, and had to depend on the government for funds to pay its employees and make other payments.
The ongoing strike during the Diwali peak season has worsened the financial situation.
The corporation’s accumulated loss before the pandemic was around Rs 8,500 crore. But due to the losses it faced during the lockdown, the number expected to rise to Rs 12,000 crore by the end of this financial year, an official said.
The MSRTC is one of the biggest state transport corporations in the country, with a fleet of more than 16,000 buses and around 93,000 employees, including drivers and conductors.
The corporation used to ferry over 65 lakh passengers daily before the coronavirus outbreak last year.
Earlier, the MSRTC entered the freight movement business by converting its old buses into goods vehicles, to improve its finances. The service also received goods response from within and outside the state.
Last year, Parab had announced a number of other measures like body-building of private buses at the MSRTC’s workshops, tyre remoulding and refuelling service for private vehicles at its petrol pumps, among others.
According to MSRTC officials, barring goods service, most of these measures remain on cards even after several months.
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