Govt proposes Rs 10 lakh support, fuel and insurance subsidies for private bus operators
PANAJI
Under pressure from private bus operators, the State government has announced to discontinue its ambitious ‘Mhaji Bus’ scheme, launched on a pilot basis in August 2023 in a bid to improve public transportation in rural Goa, from May 16 onwards.
At the same time, the government is considering providing fuel subsidies of Rs 3 per kilometre to private bus operators apart from bearing 50 per cent of the vehicle insurance cost annually. The bus operators will also get Rs 10 lakh subsidy for purchase of new vehicles.
During the trial run from August 2023 to April 2025, the Kadamba Transport Corporation Limited (KTCL) reportedly generated around Rs 11.10 crore in revenue, despite a government subsidy of Rs 11.66 crore to cover the operational shortfalls. In the State Budget 2025-26, an amount of Rs 8 crore was earmarked to expand the services under the scheme.
A total of 57 buses were operating across routes in Canacona, Quepem and other parts of South Goa, targeting the remote areas where public transportation is a challenge, including during the evening hours.
Speaking to The Goan, KTCL Chairman Ulhas Tuenkar confirmed that the decision has been taken to discontinue Mhaji Bus scheme from May 16 and to introduce a new modified scheme for the benefit of private bus operators.
As per the scheme, the private bus operators, who tied up with the KTCL, are paid an average of Rs 34 per km with a minimum distance guarantee of around 180 km per day. “Payments to private bus drivers and conductors are made based on the distance covered, and any balance is paid as a subsidy to the bus operators,” Tuenkar said.
Tuenkar said that the government is working on a revamped scheme, under which private bus operators would be provided with fuel subsidy of Rs 3 per km apart from bearing 50 per cent of the vehicle insurance cost.
“Those above 15-year-old buses will have to be scrapped and the government will provide Rs 10 lakh financial support to bus operators to buy new buses,” he said.
The Chairman said that the proposal is being worked out and the drafting of the scheme is under process.
The private bus operators had strongly opposed the Mhaji bus scheme and had said that they are yet to receive fuel subsidy payments amounting to approximately Rs 36 crore, pending since 2018.
