The three-day strike by Telangana Road Transport Corporation (TGRTC) employees last week brought to the fore the challenges faced by state road transport undertakings (SRTUs) nationwide. Almost all of them are hampered by mounting losses, ageing fleets, rising employee costs and input price shocks. In addition, most of them lack autonomous functioning, being subject to the government’s social priorities.
The strike in Telangana paralysed bus services for three days before a team of several ministers persuaded the employees to resume duties. They signalled conditional acceptance of most of the 32 demands, which would require an additional annual expenditure of Rs 34,000 crore. It is not clear how a government that is deep in debt itself will absorb such a shock. One of the demands is to accept the 38,000 employees of the corporation into government service. Another is to reimburse the corporation for the massive revenue it has lost so far on account of free travel for women. Some of the other demands, such as a stop to the induction of 2,000 electric buses under the PM e-Drive scheme, would limit the transport utility’s options on fuel cost savings.
TGRTC’s travails are part of the national crisis in the public transport sector. India’s 58 SRTUs are making losses amounting to Rs 35,000 crore annually, as per Ministry of Road Transport and Highways figures. The Delhi Transport Corporation has accumulated losses totalling Rs 97,000 crore, which is just short of the overall budget of the Union Territory. The Maharashtra State Road Transport Corporation (MSRTC) posted a loss of Rs 591 crore in 2025-26 due to spiralling wage (45%), fuel (25%) and maintenance costs. Karnataka’s RTC posted losses of Rs 1,200 crore after it implemented the Shakti Yojane for women in 2024.
The US-Israel war on Iran could not have come at a worse time for transport undertakings. Diesel costs account for 53% of the budgets of some SRTUs. None of them has the option of passing on the Rs 22 per litre hike in industrial diesel to commuters. A further hike in fuel costs is likely after the results of the Assembly elections on May 4.
Public transporters are justified in griping about not being reimbursed for the free travel schemes announced by governments. While researchers say these schemes have resulted in an 8% saving for households, cash-strapped transporters are having to carry the burden while governments drag their feet on releasing reimbursements. Telangana’s RTC owes arrears of Rs 4,069 crore due to the Mahalakshmi scheme. Delhi’s pink tickets for women have cost the DTC Rs 9,622 crore so far.
Most SRTUs are looking to electric buses as a way to cut costs, but that option is facing obstacles. Employees are opposed to the switch because it will involve the lease of vehicles rather than outright purchase. This would result in leaner staffing (mainly contractual) and scaled-down maintenance systems. There will also be up-front costs on battery infrastructure and depot realignment.
It is nobody’s case that public transportation should be privatised. But it needs professional management by domain experts who will act in alignment with the overall transport policy. Minimal government interference, prompt reimbursements for welfare delivery and operational freedom on fleet renewal are the needs of the hour for India’s SRTUs.