Nagpur: Barely seven months after presenting a Rs 575.58 crore budget, Nagpur Municipal Corporation’s (NMC) Transport Committee has approved a proposal seeking an additional Rs 108.51 crore for Aapli Bus operations. The Transport Department has also approached NMC’s accounts and finance department seeking over Rs 100 crore to ensure the smooth running of the city’s public transport service.The proposal, approved at a meeting chaired by Transport Committee chairperson Mangala Khekre, will now be placed before the standing committee. However, a senior accounts department officer told TOI that arranging funds of this magnitude at this stage would be difficult, given the civic body’s existing financial commitments and budgetary constraints.
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The Transport Department’s original budget projected revenue of Rs 190 crore against estimated expenditure of Rs 574.89 crore. It sought an NMC subsidy of Rs 200 crore, Rs 50 crore more than its earlier proposal, to bridge the funding gap.Yet, within months, the department has returned seeking another Rs 108.51 crore, raising questions about the accuracy of its initial projections.Sources said the original estimates factored in revenue from bus depots, advertising rights and other sources without adequately assessing their actual earning potential or the department’s expenditure requirements.According to Tuesday’s proposal, bus operations are expected to cost Rs 295 crore between Oct 2026 and March 2027. Against this, the department expects to mobilise Rs 186.49 crore through the remaining NMC grant, passenger fares, Nagpur Metropolitan Region Development Authority (NMRDA) assistance and PM e-Bus Sewa funds, leaving a shortfall of Rs 108.51 crore.The proposal attributed the financial strain to the expansion of the fleet from 430 buses in April to 825 in Oct. Nine operators are now managing services across eight depots, significantly increasing contractual payments and operating costs.Meanwhile, the committee returned proposals on revised rates for contract-hired buses, advertising rights for 242 bus shelters and Rs 13.84 crore in infrastructure development at six bus depots, seeking modifications. Other proposals on the agenda were approved.The latest demand raises questions about whether NMC’s already stretched finances can accommodate another substantial subsidy for Aapli Bus and why the department’s original budget failed to account for its actual operational requirements.5 CNG pumps: The panel approved five CNG pumps on NMC land at Wathoda, Khapri, Wadi, Hingna and the workshop premises under the BOT model. Members questioned the move as most NMC buses run on electricity, while the proposal does not specify the revenue expected from land leasing. Opposition members alleged the proposal was intended to benefit a particular individual.20%-50% concession: Despite mounting losses, the committee approved 20% to 50% concessions on bus rentals for govt, semi-govt, educational, social, industrial and private institutions, reducing proposed fares by up to Rs4,000. Under the original proposal, pick-up and drop charges were fixed at Rs5,000 for mini/midi diesel buses, Rs6,000 for midi electric buses, and Rs7,000 for standard electric buses. Full-day rentals were set at Rs12,000, Rs13,000 and Rs14,000, respectively.AAPLI BUS: THE NUMBERSBudget / expenditure– AmountOriginal budget outlay (2026-27)– Rs 575.58 croreProjected revenue– Rs 190 croreEstimated expenditure– Rs 574.89 croreNMC subsidy sought in April– Rs 200 croreAdditional funding now sought– Rs 108.51 croreOct-March operating expenditure– Rs 295 croreFunds expected to be available– Rs 186.49 croreFLEET EXPANSIONApril 2026: 430 busesOctober 2026: 825 busesOperations: Nine operators across eight depotsTHE OTHER PENDING PROPOSALSRevised charges for buses hired on contract.Fresh decision on advertising rights for 242 bus shelters.Rs 13.84 crore depot infrastructure development proposal covering six locations.
