After the creation of new state of Telangana in June 2014, APSRTC (Andhra Pradesh State Road Transport Corporation) was also divided into two parts and a new entity TSRTC (Telangana State Road Transport Corporation) was created with a fleet of 10,329. TSRTC is operating around 3,600 routes and carrying around 9.2 million passengers per day, with occupancy ratio of 70% (Source: MoRTH). The corporation has three zones and Services operating through 95 depots.

TSRTC is among the top 3 STUs (State Transport Undertakings) to generate revenue of INR 40 billion in 2014-15. However, TSRTC is currently incurring huge loss, with around INR 4 billon (400 crores) in 2014-15. However, the loss was further increased to aournd INR 7 billion (701 cores) in 2015-16. The average age of the fleet is around 6 years. However, one of the key reasons of low productivity (around 60%) is the staff as the corporation has 56,740 employees. The government is also evaluating the performance of each employee to ensure sustainable operation.

Currently, there were only two bus terminals in the city. The government wants to build more terminals in all corners of the city for the convenience of passengers. Further, TSRTC increased fare on its buses by 5% on rural 'Palle Velugu' services and by 10% on other services. The revised fare are applicable from June 27, 2016. The fare are increased help to bring around INR 2.8 billion (286 crores) for the corporation. 

Telangana government pays around INR 5 billion (500 cores) to TSRTC towards concessional pass and released around INR 3 billion (300 crores) as financial grant. TSRTC plays an important role to provide mobility to Commuters. Thus, the government is looking to strengthen its bus transport and has devised 12-points action plan to make TSRTC profitable.

12-points Action Plan:

  • Service at your doorstep – Providing connectivity to all citizens
  • Introduction of Mini buses for feeder routes
  • More bus terminals in Hyderabad to create transit centre
  • Introduction of Tourism buses 
  • Advertisements at bus stops and on buses to generate extra revenue
  • Cargo and courier transport service to generate additional revenue
  • Curb illicit private transport to increase patronage
  • Incremental rise in bus fares to meet the operation cost
  • Improved quality of services, amenities, cleanliness, overnight stay facilities for commuters, non-veg food in bus stand canteens
  • Equal number of interstate bus services by Telangana and Andhra Pradesh
  • Mini theatres in bus stands
  • Funds for RTC from budget to provide viability gap funding

TSRTC is planning to procure around 1,200 new buses to improve connectivity to every constituency. The corporation is planning to connect all district headquarter with an A/C bus to Hyderabad. As the long routes are making profits, the number of buses would be increased on these long routes.