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MSRTC Secures Two Months of Diesel, Projects ₹241 Crore Savings From New Fuel Tender

Short‑term security rests on IOCL priority allocation to state transport after defence and railways.

Overview

  • Transport Minister Pratap Sarnaik said bus operations have assured diesel for roughly two months but acknowledged there is no contingency plan if supplies falter beyond that window.
  • Indian Oil will supply MSRTC at 233 locations statewide, with fresh tenders to be reissued at 91 border sites to prevent state VAT revenue loss.
  • A revamped, competitive procurement raised the diesel discount to ₹5.13 per litre, with officials estimating about ₹241 crore in annual savings.
  • The transporter reports accumulated losses near ₹12,000 crore and about ₹750 crore this fiscal to February, consuming 10.87 lakh litres daily at roughly ₹3,400 crore a year.
  • Costs are expected to climb toward ₹4,700 crore with plans to induct about 8,000–8,300 diesel buses, as MSRTC pursues new income from 100–110 PPP fuel stations, expanded advertising, AI-based fuel monitoring, and rooftop solar.