MUMBAI, Feb. 27 -- The Maharashtra State Road Transport Corporation (MSRTC), already reeling under mounting losses, has initiated a competitive bidding process to procure diesel in a bid to rein in its soaring fuel bill, especially as it prepares to induct 8,000 new diesel buses over the next year. MSRTC currently operates a fleet of over 15,000 buses and consumes an average of 1.087 million litres of diesel per day, making it one of the largest bulk fuel consumers in the state. At present, diesel is largely procured from public sector oil marketing companies such as Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited. As a bulk buyer, MSRTC was earlier receiving a discount of Rs.2.70 per litre, which was recently revised to Rs.3 per litre after negotiations, resulting in annual savings of around Rs.10-12 crore. However, an internal study revealed that transport undertakings in other states are securing significantly higher discounts. State transport corporations in Madhya Pradesh, Rajasthan and Uttar Pradesh are reportedly receiving discounts of over Rs.4 per litre, while the Andhra Pradesh State Road Transport Corporation is getting as much as Rs.5.50 per litre- Rs.2.50 more than MSRTC. The corporation currently spends approximately Rs.3,400 crore annually on diesel. With the induction of 8,000 additional buses, this expenditure is projected to rise to nearly Rs.4,700 crore a year. Officials estimate that even a Rs.1 per litre reduction in diesel prices could translate into annual savings of Rs.50-55 crore. MSRTC is already saddled with accumulated losses of around Rs.12,000 crore, making fuel cost rationalisation critical to its financial recovery. Transport minister and MSRTC chairman Pratap Sarnaik said the corporation had decided to follow the competitive bidding model adopted by other states. "When we examined why other states were getting higher discounts, we found they followed a competitive bidding process for bulk fuel procurement. We are hopeful that this move will help MSRTC secure better rates and reduce operational costs," he said....