NT Reporter
Panaji
The state government has revised the Mhaji Bus Scheme, raising the operational subsidy for private stage carriage operators from Rs 3 to Rs 5 per kilometre and increasing the maximum insurance reimbursement from Rs 30,000 to Rs 40,000.
The revised scheme, notified on Thursday, supersedes the notification issued on May 6, 2025, and removes several functions earlier assigned to the Kadamba Transport Corporation Ltd (KTCL).
Under the revised scheme, operators will receive reimbursement of 50 per cent of their annual insurance premium, subject to the increased ceiling of Rs 40,000. The Rs 10 lakh assistance for replacing buses older than 15 years with new buses having a minimum seating capacity of 27 remains unchanged.
Private operators must hold valid stage carriage permits, while buses normally cannot be more than 15 years old. During the initial three years, buses up to 20 years old will be eligible.
The revised notification also changes the administrative structure of the scheme. While the 2025 scheme was jointly implemented by the Directorate of Transport and KTCL, the revised scheme will be implemented by the Directorate alone. Applications
will now be submitted to the Assistant Directors of Transport, while the Director of Transport will sanction claims.
Several provisions relating to KTCL have been dropped. These include maintaining separate scheme accounts, administering smart passes and cards, sharing advertisement revenue with operators and providing a mobilisation advance of up to 60 days of operational subsidy.
Operators will retain the full fare revenue and will not have to deposit passenger collections with the department. Buses must operate on permitted days throughout the year, and operators must arrange replacement vehicles during breakdowns or interruptions.
The notification also provides for a dedicated Mhaji Bus Scheme section under the Transport Department for monitoring and compliance. Violations can attract warnings, fines, subsidy deductions or suspension. The government said the framework is intended to provide “financial and infrastructural support” to private operators
while ensuring an affordable, safe and reliable public transport system, particularly in rural and underserved areas.
