The Goa government has announced that the 'Mhaji Bus' service will be discontinued from May 16, 2025, following sustained pressure from private bus operators who opposed the scheme. Originally launched to provide affordable transport to Goa’s remote areas, the initiative ran into resistance from local bus owners who argued it was threatening their livelihoods.
Confirming the move, KTCL Chairman Ulhas Tuenkar stated that a new, revised scheme will be rolled out to support private operators more effectively. Under the current arrangement, operators tied up with KTCL receive an average payment of ₹34 per kilometre for a guaranteed minimum of 180 km per day. Drivers and conductors are paid based on the distance covered, and any leftover balance is given to operators as a subsidy.
In the upcoming revamped scheme, private bus operators will be offered a fuel subsidy of ₹3 per km and a 50% contribution towards vehicle insurance. Additionally, all buses older than 15 years will need to be scrapped, with the government providing up to ₹10 lakh in financial aid to help operators purchase new vehicles. These measures aim to address operator concerns while ensuring the sustainability of Goa’s public transport system.