MSRTC to rake in Rs 250 crore via ads
The Maharashtra State Road Transport Corporation (MSRTC) will shore up its revenue through advertising and earn more than Rs 250 crore over the next five years, Transport Minister Pratap Sarnaik said on Tuesday.
The move aims to transform the State’s iconic ‘Lal Pari ‘(red buses) from a primary transport utility into a significant revenue-generating engine, the MSRTC chairman said during the 310th Board of Directors meeting held at the MSRTC headquarters.
According to a release issued by the MSRTC on Tuesday, Sarnaik stated that an ambitious plan has been finalised to leverage the corporation’s massive footprint.
“The ST Corporation has 251 depots and more than 610 bus stands spread across every corner of Maharashtra. With a fleet of about 12,000 buses transporting 50 to 55 lakh passengers daily, this is a golden opportunity for advertisers,” the minister said. As the fleet expands, daily ridership is expected to touch the 1-crore mark, significantly increasing the valuation of advertising space, he added.
“An ambitious plan has been prepared to increase advertising revenue by making full use of bus stands, their surroundings, and the interior and exterior of buses. A competitive bidding process has already been implemented, and bids worth more than Rs 250 crore have been accepted for the next five years,” Sarnaik said.
Currently, the MSRTC earns approximately Rs 22 crore annually from advertisements. The new tenders are expected to more than double this yearly income. The rights will be transitioned to new licensees once the current contracts expire, according to the release.
Sarnaik expressed confidence that diversifying income streams is the only way to ensure the financial health of the State transport utility.
“If income is generated from various alternative sources apart from ticket sales, ST will not have to face losses in the future,” he added.
The meeting was attended by high-ranking officials, including Transport Commissioner Rajesh Narvekar, MSRTC Vice Chairman and Managing Director Dr Madhav Kusekar, and Joint Labour Commissioner Pallavi Sahare.
