MTC wins national award for urban transport financing

CHENNAI: The Metropolitan Transport Corporation (MTC) has received a national-level award in the category of ‘City with the Most Viable Financing Arrangement for Urban Transport’, recognising its efforts to strengthen the financial sustainability and operational efficiency of public transport services.

The award was presented by Union Minister for Housing and Urban Affairs Manohar Lal at the India Urban Mobility Conference and Exhibition 2026, held in Bhubaneswar, Odisha. MTC Managing Director VP Jeyaseelan received the award on behalf of the corporation.

MTC operates 4,100 buses, including around 755 electric buses, across 687 routes in Chennai and its suburban areas. The award recognises measures taken by the corporation to improve the financial sustainability and efficiency of public transport operations. Under the Chennai City Partnership – Sustainable Urban Services Programme (CCP-SUSP), supported by the World Bank, Asian Infrastructure Investment Bank (AIIB) and Tamil Nadu Infrastructure Development Board (TNIDB), MTC receives performance-based Viability Gap Funding (VGF).

The funding is linked to the achievement of specified Key Performance Indicators (KPIs), including bus operational efficiency, service reliability, and the utilisation of personnel and vehicles. The eligibility target for the funding has been increased from 10% in 2023–24 to 100% in 2026–27.

The financial support is being utilised for measures including depot infrastructure and employee welfare, with the aim of improving MTC operational efficiency and the quality of public transport services.