Nashik: NMC Spends ₹220 Crore to Cover Losses from Citilinc Bus Service

The Nashik Municipal Corporation (NMC) launched the Citylink Bus service in July 2022 to improve urban transportation. However, since its inception, the service has been running at a significant loss, placing a heavy financial strain on the municipal treasury. To date, the NMC has paid approximately Rs 220 crore to cover deficits incurred by the Citylink administration.

This persistent loss has sparked debates on whether the bus service—once envisioned as a dream project of the Bharatiya Janata Party (BJP)—has become a “white elephant” for the municipality. Critics argue that the service’s financial model needs urgent re-evaluation, with some questioning if it primarily benefits contractors rather than Nashik’s citizens.

The Citylink Bus service began with 50 buses and has since expanded to a fleet of 250, including 200 diesel and 50 CNG buses. Operating from two depots, Nashik Road and Tapovan, the service covers several routes across the city and its outskirts, including areas like Sinnar, Bhagur, Dindori, and Pimpalgaon Baswant. While certain routes see good usage, others reportedly run with minimal passengers, contributing to mounting losses.

The service aims to connect urban and semi-urban areas, offering travel over distances up to 25 kilometers. Despite this, the service struggles to achieve profitability. Poor implementation of profitability schemes and the operation of underutilized routes have further exacerbated the financial burden.

Every year, the Municipal Corporation allocates substantial funds to cover the service’s deficits. These funds, totaling hundreds of crores, have diverted resources away from other essential development projects in Nashik. Proposals, such as the 2020 suggestion to privatize the Nashik Busway, have yet to materialize, leaving the municipal coffers to bear the brunt of operational losses.

Additionally, the Citylink service has been plagued by frequent strikes, causing inconvenience to Nashik’s residents. Although efforts have been made to optimize operations, including the introduction of CNG buses and expanded coverage, their benefits have not been fully realized.

As losses continue to mount, there is growing consensus that the Citylink Bus service’s sustainability requires urgent attention. Authorities may need to reconsider the operational model, explore privatization, or identify alternative revenue streams to reduce the financial burden. Ensuring the service meets its intended purpose—improving urban transportation without crippling the city’s budget—is crucial for Nashik’s progress.