Thane’s proposed fleet of 180 air-conditioned electric buses is expected to create a significant financial gap for the Thane Municipal Corporation (TMC) and Thane Municipal Transport (TMT), with projected operating costs exceeding ticket revenue by around Rs 430 crore over 12 years.
According to official estimates, running and maintaining the 180 electric buses for the 12-year contract period is expected to cost Rs 1,096.36 crore. Ticket collections, meanwhile, are estimated at Rs 666.11 crore, leaving a projected shortfall of Rs 430.25 crore.
On an annual basis, operating expenses are estimated at around Rs 91.36 crore against projected ticket revenue of Rs 55.51 crore, resulting in an annual deficit of approximately Rs 35.85 crore.
To reduce the financial burden, TMT has proposed revising passenger fares. The proposed increase is expected to generate around Rs 19 crore in additional annual revenue, potentially bringing the yearly deficit down to nearly Rs 16 crore. TMT fares have remained unchanged since July 2015 despite rising operating expenses.
180 electric buses planned
The proposed fleet is being developed under the 15th Finance Commission’s Clean Air Action Plan. TMC has received a central grant of Rs 64.52 crore for procuring the electric buses, equivalent to roughly Rs 35.84 lakh per vehicle.
The fleet will comprise 100 nine-metre AC electric buses, 70 12-metre AC electric buses and 10 nine-to-10-metre AC electric double-decker buses. The vehicles are expected to strengthen public transport on high-density corridors, including Ghodbunder Road.
Additional expenditure will be required for charging and electrical infrastructure and civil works at depots. Kolshet Depot is estimated to require Rs 14 crore for electrical and charging facilities and Rs 10 crore for civil works. Kalwa and Chhatrapati Shivaji Maharaj (Mullabag) depots are each expected to require Rs 7 crore for electrical infrastructure and Rs 5 crore for civil works.
Grant utilisation deadline adds pressure
Authorities have also raised concerns over delays in utilising the Rs 64.52-crore central grant. During a July 28 meeting with the Principal Secretary of the Environment Department, officials warned that the funds must be utilised through the tendering process or risk being recalled.
“The TMT fare structure has remained unrevised since July 2015, whereas our operational costs have escalated significantly—including electricity charges for our e-buses rising from ₹4.51 to ₹8.92 per unit. Operating the 180 new AC electric buses under the Clean Air Action Plan over a 12-year period involves a projected expenditure of ₹1,096.36 crore against revenue of ₹666.11 crore. To bridge this operational gap and ensure long-term service sustainability, a rationalized fare revision proposal generating approximately ₹33.48 crore annually has been framed for consideration.”
— Bhalchandra Behere, Transport Manager, Thane Municipal Transport (TMT)
“While Thane Municipal Corporation is committed to expanding green public transit along major routes like Ghodbunder Road, running an eco-friendly fleet requires financial balance. The proposed fare adjustment and central grant utilization under the Clean Air Action Plan are structured to minimize the net burden on civic funds down to roughly ₹16 crore annually while maintaining reliable, modern commuting options for citizens.”
— Saurabh Rao (IAS), Municipal Commissioner & Administrator, Thane Municipal Corporation (TMC)
Source: The Free Press Journal
