The cash-strapped Maharashtra State Road Transport Corporation (MSRTC) put out a tender on Tuesday to lease 500 regular buses for hire from private bus operators in the state.

This move should help the company reduce its daily expenses. Buses will be managed by the private operator’s drivers, but tickets will only be issued by MSRTC drivers. Operators would also be responsible for the maintenance of the buses and other related expenses.

A pre-bid meeting for the tender will take place on August 17th. The tender has been issued for the lease of ordinary BS VI model HSD buses for 7 + 1 years for inter-city and interstate services under seven divisions of the MSRTC.

The unions, however, criticized the initiative, with many calling it a step towards the privatization of the state’s transportation department.

Indian express had previously reported MSRTC decision to rent regular buses (non AC and non luxury) from private operators.

the the company was already under the weight of debt of over Rs 3,500 crore before the Covid-induced lockdown pushes it to Rs 9,500 crore. Recently, the state government sanctioned a Rs 600 crore back-up plan to the MSRTC to wipe out the payroll contributions of its employees.