In a major shift from its long-standing policy, the Tamil Nadu government has authorized its state-run transport corporations to rent or lease buses from private operators. This decision comes as a direct response to significant delays in procuring new buses for the public fleet. The move applies to urban operators like Chennai's Metropolitan Transport Corporation (MTC), which previously could not hire private buses, unlike long-distance services.
A Policy Shift to Bridge the Gap
Until now, the practice of hiring private buses was restricted to long-distance and mofussil operators such as the State Express Transport Corporation (SETC) and the Tamil Nadu State Transport Corporation (TNSTC). It was typically reserved for festive weekends or emergency situations to handle surging demand or service disruptions. The new order marks a significant expansion of this system, allowing it for regular urban services.
The government has stated that fares on these privately-operated buses will remain the same as those on state-owned buses. However, the operational cost to the state is notably higher. For every kilometer, the government pays ₹51 to private operators running services on behalf of state transport undertakings. This compares to ₹40-45 per kilometer for air-conditioned sleeper-cum-seater buses owned by the government.
Unions and Activists Voice Strong Concerns
The policy change has immediately drawn criticism from trade unions and transportation activists, who see it as a step towards institutionalizing dependence on private players at a higher cost. M Radhakrishnan, a retired official from the transport department, pointed out the disparity: "This is higher than what govt charges when its own buses are hired by private entities for sightseeing, weddings or educational tours."
Crew members of state-owned buses have alleged that the leasing system could strengthen collusion between transport officials and private operators. They cited an incident during Diwali, where staff claimed officials at the Kilambakkam bus terminus ensured private buses were filled first. State-run buses were reportedly pressed into service only after 2 am or 3 am, once crowds had thinned.
Transportation activist S Kamal acknowledged that passengers often prefer corporation-hired private buses due to better seats and maintenance. This stands in contrast to the ageing government fleet, which faces recurring issues with seating, ventilation, and safety-related repairs. However, Kamal warned, "Continued reliance on private operators would weaken public transport."
Procurement Targets Lagging Behind
The backdrop to this decision is a series of unmet procurement targets. After assuming office in 2021, the DMK government announced ambitious plans to add 11,900 new buses during its tenure. Data shows that only around 3,500 buses were procured until March 2025.
Ahead of elections, the government set a fresh target to procure 3,000 buses in the 2025-26 fiscal year. Finance Minister Thangam Thennarasu allocated ₹1,031 crore for this purpose. However, by December, less than one-fourth of this annual target had been met. Transport department officials have stated that efforts are underway to induct at least 1,800 buses before the upcoming polls.
Despite repeated attempts, State Transport Minister S S Sivasankar could not be reached for comment on the policy shift or the procurement delays. The move leaves the future of Tamil Nadu's public transport system at a critical juncture, balancing immediate service needs with long-term sustainability and cost.
