Two decades after the closure of Madhya Pradesh Road Transport Corporation (MPRTC)-run government bus services, the state government is set to introduce a new public transport model. The new system will be launched within a month. The government will work as an aggregator for these services, which will be run through private companies.
A highly placed source in the Madhya Pradesh Transport Department told Business Standard on Thursday, on the condition of anonymity, “The chief minister is particularly interested in this project. A presentation has been made to the chief secretary in this regard, and this service can start in the next one month. Under this, a central company will be formed, and bus services will be operated at the state level by forming other companies at the divisional level.”
Regarding the role of the state government in this service, the official said, “The government will play the role of aggregator and promoter while providing subsidies. The government will also have a role in determining the route and fixing fares, etc., for the bus companies. The government will also provide concessions to bus operators so that the fares remain low, and students and women, etc., get the necessary concessions.”
Madhya Pradesh Chief Minister Mohan Yadav recently spoke about restarting government bus services, but he did not provide detailed information about the execution model of this particular project.
In 2005, the then Bharatiya Janata Party (BJP) government, led by then chief minister Babulal Gaur, announced the closure of the State Transport Corporation, citing a loss of Rs 756 crore.
29.5 per cent of the amount required for running the corporation was received from the central government, while 70.5 per cent came from the state government. According to department officials, due to legal hurdles, it is difficult for the State Road Transport Corporation to operate buses directly. That is why a new model is being adopted.
Shyam Sundar Sharma, president of MP Passenger Service Council, told Business Standard, “If the government starts the Road Transport Corporation in its original form, then it is welcome. But running buses through companies is not in the interest of passengers at all.”

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