Over the years, Tamil Nadu’s public transport system evolved into one of the largest in India, ensuring connectivity even in remote villages. However, it is now running into chicane.
Published Mar 11, 2025 | 12:00 PM ⚊ Updated Mar 11, 2025 | 12:00 PM
TNSTC, one of the largest public transport networks in the country, operates over 10,000 routes with approximately 20,000 buses. (Wikimedia Commons)
Synopsis: Financial crisis, privatisation plan, and delayed modernisation are among several factors driving Tamil Nadu’s public transport system south. Privatising the public transport system may go contrary to the intention of nationalising it in the 1970s.
Public transportation in Tamil Nadu is not merely a government service but a social movement that has transformed mobility across the state.
A major milestone in this movement was achieved in 1971 under the leadership of the then-chief minister M Karunanidhi, who played a crucial role in the nationalisation of bus services, which ensured people accessibility across urban and rural areas.
Following the enactment of the Tamil Nadu Fleet Operators Stage Carriages (Acquisition) Act in 1971, the government formed the Pallavan Transport Corporation on 1 January 1972.
The corporation, meant to manage bus services in Chennai and its suburbs, marked the beginning of organised state-run transport, which was later expanded to other districts.
Over the years, Tamil Nadu’s public transport system evolved into one of the largest in India, ensuring connectivity even in remote villages.
The primary objective was to connect even the most remote villages to towns and cities, ensuring accessibility for all sections of society. The vision was clear: Only a robust public transport system could bridge the mobility gap between rural and urban areas.
Over the decades, the Tamil Nadu State Transport Corporation (TNSTC) played a crucial role in making Tamil Nadu one of the most well-connected Indian states.
However, the movement that once ensured equitable transport for all is now heading south due to various challenges, including privatisation, financial struggles, and operational inefficiencies.
Tamil Nadu Finance Minister Thangam Thenarasu is set to table the Budget 2025-26 on 14 March. Among the most critical sectors that require attention in the Budget is transportation. Without a strong public transport system, millions of people, particularly the working class and rural population, will struggle to commute affordably and efficiently.
Formed in 1972, TNSTC is one of the largest public transport networks in the country, operating over 10,000 routes with approximately 20,000 buses. The corporation employs around 1.2 lakh workers, including drivers, conductors, and maintenance staff.
Despite this vast infrastructure, TNSTC is facing a crisis to its existence due to financial losses, lack of modernisation, and increasing privatisation.
V Dayanandham, the secretary of the CITU-affiliated Government Transport Employees’ Union, emphasised the growing threat of privatisation.
He pointed out that the Chennai Transport Corporation recently announced plans to invite tenders for handing over 600 electric buses to private operators. With the maintenance cost per kilometer set at ₹77 – ₹87, this move is seen as a step towards privatising a significant portion of public transport.
Additionally, more than 5,000 transport workers across Tamil Nadu are already employed on an outsourcing basis with no job security or benefits. The introduction of private operators into the public transport system could further weaken the job security of permanent employees and disrupt the reliability of public transport services.
Outside Chennai, private players are already operating minibuses. In Chennai, the government operates 146 minibuses. However, the recent decision to hand over 72 additional minibuses to private operators has raised concerns among unions and employees.
Dayanandham warned that if the trend continued, the public transport sector might become entirely privatised, leading to higher fares and reduced accessibility for economically weaker sections.
One of the key dangers of privatising transport services is that private operators prioritise profits over public needs.
“If a certain number of tickets are not booked, airlines delay or cancel flights at their discretion. If public transport is privatised, bus operators may reduce or cancel services on unprofitable routes, affecting thousands of daily commuters,” Dayanandham cited an example.
Currently, TNSTC operates loss-making routes in over 10,000 areas, ensuring connectivity for marginalised communities. If these routes are handed over to private players, there is no guarantee that they will operate the schedules.
Public transportation, as envisioned by the Dravidian model, is a welfare measure, not business. The government currently provides free bus travel for women and subsidised bus passes for students.
Private operators, on the other hand, do not implement such welfare measures. For instance, private bus operators in Tamil Nadu do not accept student bus passes.
A significant argument in favour of privatisation is the claim that TNSTC operates at a loss.
However, transport workers argued that public transport should not be evaluated solely based on profitability. The government provides substantial subsidies to the electricity sector to cover its losses, so why is the transport sector treated differently, asked Dayanandham.
He pointed out that due to financial constraints, TNSTC employees have not received essential benefits such as the Provident Fund (PF), gratuity, leave salary, or dearness allowance (DA).
The 15th wage settlement, which should have been implemented in 2023, is still pending, and over 94,000 retired transport employees receive only partial pensions.
The DA, which is supposed to be revised regularly, has remained stagnant, with 22 months of DA arrears still unpaid. Additionally, long-pending terminal benefits for retired employees remain unresolved, adding to their financial distress.
As the Tamil Nadu government prepares to present its budget, transport workers and unions have outlined several key demands:
Tamil Nadu’s public transport system was established with a vision to serve the people, not to generate profits. The recent push towards privatisation threatens this vision and could lead to severe consequences for both employees and the general public.
If the government fails to intervene, public transport could become inaccessible to the very people it was designed to serve.
As the tabling of Budget 2025-26 approaches, transport workers, unions, and commuters are hoping for a strong commitment from the government to safeguard TNSTC’s future.
Strengthening public transport is not just an economic necessity—it is a social responsibility that will determine the mobility and accessibility of millions across Tamil Nadu.
(Edited by Majnu Babu).
