Madhya Pradesh is preparing to revive its state-run road transport service nearly two decades after it was shut down. The state government has given in-principle approval to reintroduce an organised public bus network to improve connectivity across rural, semi-urban and underserved regions.
Chief Minister Mohan Yadav has formed a multi-department task force to design the revival model. Officials from the Transport, Finance, Public Works and Rural Development departments will jointly evaluate the operational and financial structure best suited for the new service.
Three models are currently under review. The first is a fully government-owned and operated bus corporation, similar to the earlier setup. The second is a hybrid public–private model where infrastructure is state-owned but operations are outsourced. The final option and the most likely one to be adopted, is a Viability Gap Funding (VGF)-based model. Under this system, private operators will run buses on predetermined routes while the government provides financial support to ensure affordable fares and widespread coverage.
The previous Madhya Pradesh State Road Transport Corporation (MPSRTC) was shut down around 2005 due to continuous financial losses. Since then, many villages and small towns have been left dependent on private buses, which often avoid low-profit routes—resulting in poor connectivity for large sections of the population.
The revival of state-supported bus services is expected to significantly improve mobility, enhance access to essential services and boost economic activity across the state, particularly in remote and underserved areas.
