Boost for private operators as govt unveils new bus scheme

THE GOAN NETWORK | MAY 16, 2025, 12:13 AM IST

PANAJI

The State government on Thursday announced revamped ‘Mhaji Bus Scheme 2025’ providing financial and infrastructural support to private bus operators in the State. Installation of Vehicle Location Tracking Device (VLTD) would be mandatory and private bus operators would be eligible for fuel subsidy of Rs 3 per kilometre under the new scheme.

With the launch of the modified scheme, the government has discontinued Mhaji Bus’ scheme, launched on a pilot basis in August 2023’ on mode of revenue sharing with the Kadamba Transport Corporation Limited (KTCL).

Under the new scheme, the operator will retain full fare revenue collected from the passengers and shall not be required to deposit any fare amount with KTCL.

As reported by The Goan in it May 14 edition, the bus operators would be eligible for subsidy of Rs 3 per kilometre, 50 per cent reimbursement of the annual insurance premium paid up to maximum of Rs 30,000 and assistance of Rs10 lakh for replacing buses older than 15 years, with new buses having minimum seating capacity of 27.

“The scheme aims to increase the availability of buses across the State, reduce traffic congestion, and promote the use of public transport, especially in rural and underserved areas,” Director Transport Pravimal Abhishek said in the notification issued.

The government has said that the bus to be operated under this scheme shall not be older than 15 years from the date of its initial registration. However, for an initial period of 3 years buses up to 20 years will be eligible to participate in this scheme.

The bus operator will have to install a VLTD approved by the Directorate of Transport prior to induction into the scheme and repaint the bus in the branding scheme of KTCL to ensure uniformity and visibility of public transport

“The registered owner, conductor, or driver of the bus shall be responsible for maintaining a Vehicle Log Book. They must record each trip's details, including departure and arrival times, distance covered, and any incidents or maintenance requirements,” the notification stated.

The government informed that the KTCL issued Smart transit Passes and Smart transit cards shall be accepted as valid fare instruments on all buses under the Mhaji Bus Scheme and that the amount collected through these passes and cards will be reimbursed to the respective operators as per the guidelines set by KTCL.

“Bus operators participating in the scheme shall be entitled to receive 50 per cent of the revenue generated from advertisements displayed on their buses. The remaining 50 per cent shall be retained by KTCL for administrative and operational expenses,” it said. 



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