Transport Subsidies: Over Rs 1.5 Billion Paid to Bus Operators in 2024-2025

The Minister of Land Transport, Osman Mahomed, revealed the amount paid to bus companies and private operators under the free transportation scheme for students and pensioners for the 2024-2025 fiscal year. In response to a parliamentary question from Deputy Franco Quirin, the minister announced that a total of Rs 1.58 billion was allocated.

According to data from the National Land Transport Authority (NLTA), bus companies received Rs 925.2 million, while private operators, including those in Rodrigues, received Rs 661.8 million.

Most of this funding—Rs 1.11 billion—was for student travel, with the remaining Rs 476.1 million going to elderly passengers.

The National Transport Corporation (NTC) was the largest beneficiary, receiving Rs 428.8 million.

Other major recipients included UBS (Rs 242.7 million), TBS (Rs 156.1 million), RHT (Rs 71.1 million), and MBT (Rs 26.1 million).

Private operators in Mauritius received Rs 605.2 million, while those in Rodrigues received Rs 56.5 million.

Minister Mahomed criticized the current system used to allocate funds, calling it opaque and inefficient.

He explained that the existing formula, established in 2005, relies on fixed amounts per trip and estimates of vehicle usage, which hampers transparency and fairness.

To address these issues, NLTA is working on a major reform, including the upcoming introduction of a Fleet Management System.

This system will track real-time data such as the number of trips and distances traveled, allowing for fairer, performance-based payments.

The minister called this a “game changer” and noted that Rs 70 million has been allocated in this year’s budget for its implementation.

He also mentioned that the country’s vehicle fleet has grown by 51% since 2015, now exceeding 736,000 vehicles.

Interestingly, the number of licensed buses has decreased by over 100 in the past decade, even as the Metro Express now transports around 40,000 passengers daily.

Despite these changes, the subsidy system has never been reviewed, which the minister described as “disastrous.”

A consultation meeting with stakeholders, including bus operators, is scheduled for Thursday, July 24, 2025.

Topics will include the Fleet Management System, the upcoming Bus Services Bill, and the introduction of contactless ticketing.

Finally, in response to Deputy Quirin’s question about whether delaying the pension age to 65 would affect free transport rights, Minister Mahomed assured there would be no change.

Source: l’Express