Key financial strains include the increase in fuel costs, employee salaries and loan interest payments.
State transport companies (STU) in Tamil Nadu collectively reported a monthly loss that exceeds ₹ 566 million rupees in the financial year 2024-25 (until February) compared to a monthly loss of ₹ 531.74 in the previous fiscal year, as in the department of the department of the department of the department on Wednesday by the Minister of Transportation SS Sivas.
The increase in fuel costs, employee salaries and loan interest payments have placed significant financial tension in the STU, threatening their sustainability, he said. The State offers the lowest bus rates in the country, maintaining affordability despite the increase in operational costs. The latest rate review occurred on January 29, 2018, added the policy note.
The STU fleet comprises 20,508 buses, including 18,674 programmed services and 1,834 replacement buses. Certain districts, such as Chennai, Nilgiris and Kanyakumari, are exclusive attended by Stus, while others benefit from a combination of STU and private operators services. Long -term bus services, whether interstate or within the State, are operated exclusively by the Express Transport Corporation, regardless of the operational jurisdiction of other companies.
There are plans to obtain 11,907 new buses through KFW’s financial support, the World Bank, the Special Area Development Program and the State Government. Of this total, 3,584 new buses have already induced the fleet. 750 additional buses for deployment are scheduled in June 2025, 1,098 in September 2025, 900 for December 2025 and 914 in March 2026. In total, 7,246 new buses will be on the road at the end of fiscal year 2025-26.
In addition, Metropolitan Transport Corporation (MTC) plans to add 1,225 electric buses under the gross cost contract method, and 625 are expected to be implemented in mid -2025.
Posted on April 23, 2025