GSRTC may hire 1,200 buses from private firms, sparks row

The Gujarat State Road Transport Corporation (GSRTC) has come under fire for increasingly relying on privately hired buses, with employee unions alleging a gradual move towards privatisation of public transport services.

At present, around 250 premium buses, including air-conditioned and Volvo coaches, are being operated on state routes under a rental arrangement with private operators. The corporation is paying nearly ₹13 crore per month for these services, sources said.

According to union representatives, GSRTC is now planning to expand the model by hiring between 1,000 and 1,200 additional buses from private companies. A proposal in this regard was discussed at a recent meeting of senior officials, they claimed.

The proposed fleet is expected to include around 500 AC buses, 500 mini buses, 100 luxury AC buses and 100 sleeper coaches. Officials said private operators are currently being paid between ₹26 and ₹63 per kilometre.

Employee unions have raised concerns over the financial implications of the move, arguing that the corporation could instead invest in purchasing its own fleet. They pointed out that a new AC or Volvo-type bus typically costs between ₹1 crore and ₹1.5 crore, and the 250 buses currently on hire could be purchased for around ₹350 crore.

“In comparison, the corporation is paying ₹13 crore every month as rent, which means the cost of buying such buses could be recovered in about two-and-a-half years,” a union source said, adding that such buses have a lifespan of 10 to 15 years.

Unions alleged that continuing the rental model over a longer period could result in payments of ₹1,500 crore to ₹2,000 crore to private operators over a decade.

The move has also raised concerns over staffing, with discussions reportedly underway to hire around 2,000 drivers and 2,000 conductors through private agencies instead of direct recruitment.

Vallabhbhai Vaghani, a leader of the ST Bharatiya Mazdoor Sangh, opposed the plan and said employee organisations would jointly protest against any move that affects workers’ interests.

He said the unions would resist any decision perceived as privatisation and detrimental to employees.

GSRTC officials have not issued a statement so far.