3 weeks ago
Thane's E-Bus Fleet Faces ₹430-Crore Gap; Fare Hike Proposed
Thane city has bought 180 special air-conditioned buses that run on electricity instead of petrol or diesel, which helps keep the air cleaner.
But these buses cost a lot of money to run, much more than the city earns from selling bus tickets.
Over 12 years, running them will cost about ₹1,096 crore, while tickets will only bring in about ₹666 crore.
That leaves a big gap of around ₹430 crore, which the city would have to pay for itself.
To help fix this, the transport department wants to make bus tickets more expensive.
Bus fares in Thane have not gone up since July 2015, even though costs have risen.
The fare increase could save about ₹19 crore every year, bringing the yearly loss down to about ₹16 crore.
The central government also gave Thane a grant of ₹64.52 crore to buy the buses.
But officials say the city must spend that money quickly by finishing its tenders, or it may have to give the money back.
The new buses will run on busy roads like Ghodbunder Road, and new charging stations will be built at city depots.
Thane's 180 eco-friendly AC electric bus fleet is projected to record a roughly ₹430-crore revenue gap over its 12-year contract, with operating costs of ₹1,096.36 crore against ticket revenue of ₹666.11 crore.
Annual operational expenditure is estimated at about ₹91.36 crore versus ₹55.51 crore in ticket revenue, leaving an operational deficit of roughly ₹35.85 crore per year.
A proposed fare revision could cut the annual deficit by about ₹19 crore, lowering average annual losses to roughly ₹16 crore; TMT fares have not been revised since July 2015.
The fleet comprises 100 nine-meter, 70 twelve-meter, and 10 double-decker AC electric buses, with a ₹64.52 crore Clean Air Action Plan grant (about ₹35.84 lakh per bus) for acquisition.
At a July 28 meeting, environment department authorities expressed displeasure over grant-use delays and warned the central funds risk being recalled unless tendering proceeds promptly.
- Who
- Thane Municipal Corporation (TMC) and Thane Municipal Transport (TMT), led by Municipal Commissioner Saurabh Rao and Transport Manager Bhalchandra Behere.
- What
- The 180 electric bus fleet faces a projected ₹430-crore revenue gap over its 12-year contract, prompting a proposed fare hike to cut losses.
- Where
- Thane, Maharashtra, India, along corridors like Ghodbunder Road and at the Kolshet, Kalwa, and Mullabag depots.
- When
- The deficit is projected over a 12-year contract period; the fare hike is under consideration after a July 28 meeting, and fares have been unchanged since July 2015.
- Why
- To bridge the gap between operating costs and ticket revenue, ensure long-term sustainability of the e-bus service, and use the central grant before it risks being recalled.
Citizens & Fare-Hike Critics
TMT & TMC Administration
Bus Fare Hike
Citizens & Fare-Hike Critics
Raising fares would put financial strain on local citizens, and past proposals to raise fares on grounds of fuel and administrative costs have repeatedly been turned down since fares were last revised in July 2015.
TMT & TMC Administration
A rationalized fare revision generating about ₹33.48 crore annually is essential to bridge the ₹35.85 crore yearly deficit and ensure service sustainability, as electricity charges for e-buses have risen from ₹4.51 to ₹8.92 per unit.
Green Fleet vs. Fiscal Burden
Citizens & Fare-Hike Critics
The 180 e-bus initiative imposes severe financial strain on local citizens and municipal funds, given the projected ₹430-crore revenue gap over 12 years.
TMT & TMC Administration
TMC is committed to expanding green public transit along major routes like Ghodbunder Road, and the fare adjustment and central grant use are structured to minimize the net burden on civic funds to roughly ₹16 crore annually while maintaining reliable modern commuting.
Key facts
- Bus fleet
- 180 air-conditioned electric buses
- Fleet composition
- 100 nine-meter, 70 twelve-meter, 10 double-decker AC e-buses
- 12-year operating cost
- ₹1,096.36 crore
- 12-year projected ticket revenue
- ₹666.11 crore
- Projected revenue gap
- About ₹430 crore
- Annual operating deficit
- About ₹35.85 crore; could fall to ~₹16 crore after fare revision
- Central grant (Clean Air Action Plan)
- ₹64.52 crore, about ₹35.84 lakh per bus
- Last fare revision
- July 2015
Quotes
Bhalchandra Behere
Transport Manager, Thane Municipal Transport
“"The TMT fare structure has remained unrevised since July 2015, whereas our operational costs have escalated significantly—including electricity charges for our e-buses rising from ₹4.51 to ₹8.92 per unit. Operating the 180 new AC electric buses under the Clean Air Action Plan over a 12-year period involves a projected expenditure of ₹1,096.36 crore against revenue of ₹666.11 crore. To bridge this operational gap and ensure long-term service sustainability, a rationalized fare revision proposal ”
freepressjournal.in
“"While Thane Municipal Corporation is committed to expanding green public transit along major routes like Ghodbunder Road, running an eco-friendly fleet requires financial balance. The proposed fare adjustment and central grant utilization under the Clean Air Action Plan are structured to minimize the net burden on civic funds down to roughly ₹16 crore annually while maintaining reliable, modern commuting options for citizens.”
freepressjournal.in
Sources
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