TMT Proposes Fare Hike as 180 E-Buses Face Rs 430 Crore Projected Deficit
The Thane Municipal Corporation (TMC) and Thane Municipal Transport (TMT) are facing a projected 12-year operational deficit of over ₹430 crore following plans to introduce 180 air-conditioned electric buses along high-density corridors such as Ghodbunder Road. To bridge the financial gap, transport administrators have proposed a bus fare hike, which would mark the first fare revision since July 2015.
Financial projections show that operating and maintaining the fleet of 180 AC electric buses over a 12-year contract period will cost an estimated ₹1,096.36 crore, while expected ticket revenues will generate only ₹666.11 crore. This creates an annual operational shortfall of approximately ₹35.85 crore, based on an annual expenditure of ₹91.36 crore against revenues of ₹55.51 crore.
To address the mounting shortfall, administrators have framed a fare revision proposal designed to generate roughly ₹33.48 crore annually. If approved, the fare hike is projected to reduce the annual operational deficit by about ₹19 crore, lowering net annual losses to approximately ₹16 crore. TMT Transport Manager Bhalchandra Behere noted that bus fares have remained unrevised for nine years while electricity charges for e-buses have surged from ₹4.51 to ₹8.92 per unit.
Under the 15th Finance Commission's Clean Air Action Plan, TMC received a central grant allocation of ₹64.52 crore, providing a subsidy of approximately ₹35.84 lakh per bus. The proposed fleet comprises 100 nine-meter AC electric buses, 70 twelve-meter AC electric buses, and 10 double-decker AC electric buses measuring nine to ten meters.
In addition to bus acquisition, significant capital outlays are planned for depot infrastructure. Upgrades at Kolshet Depot require ₹14 crore for electrical and charging infrastructure and ₹10 crore for civil works. Meanwhile, Kalwa Depot and Chhatrapati Shivaji Maharaj (Mullabag) Depot have each been allocated ₹7 crore for electrical infrastructure and ₹5 crore for civil works.
The municipal administration is expediting the tendering process following a July 28 meeting with the Principal Secretary of the Environment Department, where state officials warned that unutilized central grants risk being recalled. TMC Municipal Commissioner and Administrator Saurabh Rao stated that the proposed fare adjustment and grant utilization are structured to minimize the civic body's financial burden while maintaining public transit services.
