TGSRTC Turns Profitable as Government Offsets Free Travel Costs under Mahalakshmi scheme

The Telangana State Road Transport Corporation (TGSRTC), once deep in losses, is witnessing a remarkable turnaround, largely because the state government is reimbursing the corporation for the free travel offered to women under the Mahalakshmi Scheme. The reimbursement, coupled with a sharp rise in ridership due to the scheme’s popularity, has brought the public transport body back on track.

Chief Minister A. Revanth Reddy said the initiative has breathed new life into the transport corporation that had been struggling since the days of undivided Andhra Pradesh. Under the Mahalakshmi Scheme, launched soon after the Congress government took charge, women are entitled to travel free in all TGSRTC buses across the state.

The Chief Minister said that though the government shoulders a financial burden of about ₹165 crore every month through reimbursements, the social and economic benefits far outweigh the costs. “Women’s mobility has improved, their participation in education and employment has gone up, and the overall usage of public transport has significantly increased,” Revanth Reddy said.

TSRTC officials confirmed that daily passenger numbers have surged, with women forming a major share. Many now rely on buses for daily commutes to workplaces, colleges, and hospitals, increasing overall fleet utilization. While the free travel scheme removed direct fare income from women, the rise in total ridership and the government’s monthly reimbursements have ensured revenue stability.

The introduction of electric buses has also helped reduce fuel and maintenance expenses, contributing to profitability. Revanth Reddy said, “This is a sustainable investment — electric buses bring long-term financial benefits and environmental relief.”

The government is simultaneously focusing on employee welfare by ensuring regular salaries, pensions, and benefits. Many long-pending staff issues have been resolved, reducing protests and improving morale.

Financial turnaround TSRTC’s finances tell a clear story of recovery. Revenues collapsed to ₹3,300 crore during the pandemic (2020–21) with losses mounting to ₹6,000 crore. By 2022–23, revenues rose to ₹5,879 crore, and in 2023–24, TSRTC registered a profit of ₹529 crore for the first time in years on income of ₹8,127 crore. Officials now project that 2024–25 revenues could exceed ₹9,000 crore, with profits of around ₹709 crore — a complete turnaround for the once debt-ridden utility.

A social and economic shift Experts note that the Mahalakshmi Scheme has had a multiplier effect — empowering women through affordable mobility, strengthening public transport, and reducing private vehicle dependency. With financial support from the government, operational improvements, and environmental gains from electrification, TGSRTC is emerging as a model of inclusive and sustainable growth.