MSRTC To Enter Fuel Retail Market, Set Up 'Petro-Motel Hubs' To Boost Revenue Amid Financial Crisis

To overcome mounting financial challenges, the Maharashtra State Road Transport Corporation (MSRTC) will soon venture into the retail fuel business. The initiative, which marks a major diversification from its traditional operations, is being implemented through a joint partnership between the state and central governments.

MSRTC Diversifies Amid Financial Strain

Announcing the plan, State Transport Minister and MSRTC Chairman Pratap Sarnaik said, “In the near future, MSRTC will offer the public reliable and accessible fuel stations, while the corporation gains a new revenue stream through commercial fuel retail.”

Facing what Sarnaik described as an “extremely fragile” financial condition, the MSRTC is seeking to reduce its dependency on passenger ticket revenues. “It is no longer sustainable to depend solely on passenger ticket revenue. Therefore, it is essential to create new sources of income,” he emphasized.

Decades of Fuel Management Experience

The MSRTC has decades of experience in managing fuel operations, having procured diesel for over 70 years from public sector companies such as Indian Oil and Bharat Petroleum to power its bus fleet. It currently operates 251 diesel distribution points across the state exclusively for its vehicles. Leveraging this expertise, the corporation now plans to establish retail fuel stations in partnership with central public sector oil companies, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum.

These new outlets will be set up on strategically located MSRTC-owned land parcels, especially along highways and busy roadways. The government has initiated surveys to identify plots — typically around 25 by 30 meters — that can support commercially viable fuel stations.

Integrated Petro-Motel Hubs Planned

In addition to fuel, the stations will also include retail shops and amenities for travelers. The integrated facilities, envisioned as "Petro-Motel Hubs," aim to create multiple income streams and enhance the travel experience for customers. These hubs will provide fuel services to both MSRTC buses and the general public.

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Public-Private Partnership for Transparency

“Through this public-private partnership, MSRTC could generate significant income,” said Sarnaik. “Since these deals will be between public sector entities at the central and state levels, the revenue-sharing model will ensure transparency.”

Phase-Wise Rollout on the Cards

As part of the initiative, some of the existing 251 MSRTC-owned fuel stations will be relocated to more commercially suitable locations within MSRTC premises. The corporation hopes the move will transform it into a significant player in the fuel retail market, while also improving financial sustainability and service delivery.

"The project is expected to roll out in phases, with detailed implementation plans to be announced in the coming months" said an official.