For residents of Chhattisgarh’s remote tribal villages, a journey to the nearest hospital, school or market has historically depended on the availability of a passing pickup truck or a goods carrier. Fixed schedules, assured seating and affordable travel were often missing from everyday life.
A year after the launch of the Mukhyamantri Gramin Bus Yojana (MMGBY), that equation is beginning to change.
The scheme, which completes its first year on October 4, has brought scheduled bus services to 850 villages across the Bastar and Surguja divisions that previously lacked regular passenger transport. A fleet of 107 buses is now operating on 106 routes across 13 districts, having collectively travelled approximately 24 lakh kilometres over the year.
At the heart of this initiative is a policy experiment with wider economic implications: using targeted public subsidies to make private bus operations viable in remote areas where passenger volumes are low and commercial returns uncertain.
“Public transport in remote areas cannot be viewed only through the lens of commercial viability. Connectivity is equally about enabling people to access education, healthcare, employment and markets. Our approach has been to create a framework in which private operators can provide regular services while the government bridges the viability gap on routes that would otherwise remain underserved,” says S. Prakash, Secretary and Commissioner, Transport, Government of Chhattisgarh.
The scheme’s operating model allows private bus owners to retain ownership of vehicles and collect passenger fares, while the state provides financial assistance based on the kilometres actually operated on designated routes. This enables the government to extend public transport without directly investing in a new fleet or constructing bus depots.
From 34 buses to a 107-bus network
Launched at Jagdalpur on October 4, 2025, by Union Home Minister Amit Shah in the presence of Chief Minister Vishnu Deo Sai, the scheme started with 34 buses operating on 34 routes and connecting around 250 villages.
Within a year, the network has expanded to 106 routes and 107 buses, covering the 13 districts of Bastar and Surguja. The notified network spans approximately 5,300 km, with route lengths ranging from 14 km to 105 km. Most routes have two scheduled trips a day, connecting villages with nearby block, tehsil and district headquarters.
The expansion has been particularly significant in districts such as Sukma, Bijapur, Dantewada and Narayanpur, where difficult terrain, dispersed settlements and a history of security challenges have complicated transport access.
Before the scheme, many rural residents depended on goods vehicles, often travelling while standing or sitting on open platforms. The absence of predictable services created additional difficulties for women, children, elderly passengers and patients.
The change is visible on the 83-km Konta-Jagargunda route in Sukma district. According to the transport department’s assessment, travel that earlier cost around ₹200 or more in a pickup can now be undertaken for approximately ₹130 in a scheduled bus, with assured seating and fixed timings.
For shorter journeys between villages, the earlier cost could be around ₹200 when a vehicle was available, compared with a scheduled bus fare of around ₹50.
“One of the key considerations in designing the scheme was that people in remote villages should not have to depend on uncertain and potentially unsafe modes of transport for essential journeys. A predictable bus service can make a substantial difference to the daily lives of rural households,” says Prakash.
Bridging the economics of rural transport
The scheme’s central economic mechanism is its viability gap funding structure, which compensates private operators for providing services on routes that may not generate sufficient fare revenue to cover operating costs.
The state provides financial assistance at a ceiling rate of ₹26 per kilometre in the first year, ₹24 in the second year and ₹22 in the third year, subject to the applicable bidding and payment conditions. Operators also receive exemption from monthly motor vehicle tax for up to three years.
The subsidy is linked to the actual distance covered on the notified route. Each bus is equipped with a vehicle location tracking device (VLTD), allowing the transport department to monitor operations through its control and command system. Claims are submitted through the MMGBY portal and verified using tracking data before payments are released.
The model places capital investment and operating expenses on private bus owners, while the government supports the revenue gap associated with running low-demand routes.
According to the state government, ₹5.77 crore has been disbursed as financial assistance during the first year.
The gradual reduction in subsidy rates is intended to encourage routes to become more commercially viable as demand develops. Department officials say that some operators are already running additional kilometres without financial assistance, indicating that certain routes may be generating sufficient demand to support services beyond the subsidised schedule.
Officials also report that 31 of the 107 buses have occupancy levels exceeding 60%.
However, the longer-term viability of the model will depend on several factors, including passenger volumes, seasonal variations, fare revenue, fuel and maintenance costs, and the extent to which public support can be reduced without affecting service frequency.
“The intent is to create a sustainable operating framework. The financial assistance is designed to provide initial support to routes where private operators may otherwise hesitate to invest. As connectivity improves and passenger demand develops, we expect the economics of some routes to strengthen over time,” says Prakash.
Rural connectivity and the emerging mobility dividend
For remote communities, the value of a bus service extends well beyond the journey itself. Regular transport can reduce the time and cost involved in reaching schools, hospitals, employment centres and weekly markets.
Department officials cite the Konta-Jagargunda corridor as an example of how improved mobility is affecting everyday activities.
School children are using the service to travel to educational institutions, while patients and caregivers can reach healthcare facilities with greater predictability. Women are travelling with infants and household goods without having to rely on open goods vehicles.
The service has also helped workers travelling for daily-wage employment across the Andhra Pradesh border to return home on the same day, allowing them to retain their daily earnings without spending on overnight accommodation.
For small traders, forest produce collectors and rural households, the buses are creating a more dependable link with weekly markets. Residents carry mangoes, mahua, poultry and other forest produce to local haats and bring essential goods back to their villages.
Such movement can improve the circulation of goods between remote settlements and local markets, potentially supporting small-scale economic activity.
The service also provides better access to administrative services concentrated at block and district headquarters.
“Improved connectivity has implications for the rural economy because it reduces the barriers people face in participating in markets and accessing opportunities. A farmer, a small trader, a student or a daily-wage worker all benefit when transport becomes more predictable and accessible,” says D. Ravishankar, Additional Transport Commissioner, Government of Chhattisgarh.
While these changes are evident in field observations and individual accounts, their aggregate economic impact remains to be quantified. Data on changes in household income, school attendance, market transactions and healthcare utilisation would help establish the wider development benefits of the initiative.
Technology and accountability in public spending
A key feature of the scheme is its use of digital monitoring to ensure that government assistance is linked to actual service delivery.
Every bus is equipped with a vehicle location tracking device, with live movement data monitored by the transport department. The MMGBY portal provides information on routes, trips and stoppages, while the Bus Sangwari app makes bus schedules and related information accessible to passengers.
Financial assistance is calculated using the kilometres actually covered on notified routes. Uncompleted trips and unauthorised travel outside the designated routes are not ordinarily eligible for support.
The scheme also includes regulatory safeguards. Operators are required to run their routes for at least one year, and non-compliance with permit conditions can lead to the withdrawal of benefits or cancellation of permits. Department officials report that six permits have been cancelled for violations of the scheme’s norms.
These mechanisms are particularly relevant to subsidy-based transport models, where transparent verification and operational accountability determine whether public money translates into actual passenger services.
The department is also preparing route and timetable information in the standard GTFS format for publication on Google Maps. Digital fare payment through UPI and QR codes is another proposed facility that could make travel more convenient for passengers.
The next phase: 4,368 more villages
After establishing the initial network in Bastar and Surguja, the state is preparing to extend the scheme to eight additional districts during 2026-27.
The proposed expansion includes tribal development blocks in Mohla-Manpur-Ambagarh Chowki, Khairagarh-Chhuikhadan-Gandai, Balod, Gariaband, Gaurela-Pendra-Marwahi, Raigarh, Korba and Dhamtari.
The government has identified 4,368 villages without bus connectivity for inclusion in the next phase. The expansion is expected to benefit approximately 14.57 lakh people and involve 60 to 80 additional buses.
The proposed extension will test whether the existing subsidy framework can be replicated across a larger geographical area and a different mix of rural transport markets.
As the network expands, the ability to identify routes with adequate passenger demand, attract private operators and maintain reliable service will become increasingly important.
“The next phase is about taking the same objective of accessible and reliable public transport to more underserved areas. Our priority is to identify villages that remain disconnected and develop routes that can provide regular access to essential services and economic opportunities,” says Ravishankar.
Beyond the first-year numbers
The first year of the Mukhyamantri Gramin Bus Yojana has established a network of 107 buses, 106 routes and 850 newly connected villages. The approximately 24 lakh kilometres travelled provide a measure of the operational scale achieved since its launch.
The next phase, however, will require a more comprehensive assessment of performance. Passenger numbers, average occupancy, fare revenue, route-wise subsidy requirements, service reliability and passenger satisfaction will be essential indicators of the scheme’s efficiency and long-term sustainability.
In remote tribal areas, commercial viability alone may not fully capture the value of public transport. A bus service that enables a patient to reach a hospital, a child to attend school or a worker to access employment may generate substantial social benefits even when passenger volumes remain relatively low.
The policy challenge will be to balance these wider benefits with the need for transparent public expenditure and financially sustainable operations.
For Chhattisgarh, the first anniversary of the scheme marks an important stage in building a rural mobility network. Whether it can evolve into a durable model of last-mile connectivity will depend on its ability to scale access, improve service quality and progressively strengthen the economics of rural bus operations.
