MP Cabinet approves launch of Mukhyamantri Sugam Parivahan Seva

Apr 01, 2025

Bhopal (Madhya Pradesh) [India], April 1 : A cabinet meeting held under the chairmanship of Chief Minister Mohan Yadav at Mantralaya in Bhopal on Tuesday and the council of ministers given a nod to the launch of 'Mukhyamantri Sugam Parivahan Seva' to provide organized, convenient, and safe passenger transport bus services on urban and rural routes in the state.
The plan involves structured traffic, route surveys, and bus frequency determination to operate passenger buses in an organized manner. The cabinet ministers decided that the private sector would provide safe and regulated passenger transport services.
For operating Mukhyamantri Sugam Parivahan Seva, a PPP (Public-Private Partnership) model will be adopted to develop high-quality transport infrastructure. Private bus operators will be regulated through a transparent process using a digital IT platform. The entire bus operation will be monitored through an IT-based system, ensuring compliance with Service Level Agreements (SLA) and Key Performance Indicators (KPI) for passenger convenience and safety.
To initiate this transport service, Rs 101.20 crore was also approved as seed capital. Additionally, approval was granted to form a state-level holding company. Currently, 20 cities in Madhya Pradesh have SPVs (Special Purpose Vehicles) under the Companies Act for public transportation, of which 16 are operational. These companies will be merged into seven divisional companies. A holding company will be formed under the Companies Act, 2013, to oversee these seven companies. The decision includes closing the existing transport companies in Rewa and Gwalior and forming new regional companies.
Necessary amendments will be made to the Madhya Pradesh Motor Vehicle Rules, 1994, with the administrative department proceeding as per legal procedures. The transport-related assets currently used by city transport companies will remain under their control. Bus terminals, bus stands, and stops developed using municipal funds will be upgraded in collaboration with the holding company to enhance passenger facilities.
Additionally, the Council of Ministers approved the revision of various allowances for government employees, leading to an additional annual burden of Rs 1,500 crore on the state government. House Rent Allowance (HRA): Based on the 7th Pay Commission and basic salary 10% for A-category cities, 7% for B-category cities, 5% for C & D-category cities. Other Allowances increased as per price index adjustments, including Daily allowance, vehicle allowance, meal allowance, lodging eligibility, and local transport for out-of-state travel.
Double allowance for additional work, Non-practice allowance for eligible doctors and medical teachers, Secretariat allowance and special allowance for ministry officials, Death Gratuity increased to Rs 1.25 lakh based on a 2.57x multiplier. Ministry Allowance for employees working in the Finance Management Information System, Directorate and State Hospitality Office will receive ministry allowance equivalent to officers in the Secretariat.
The Cabinet Ministers also declared the Mata Bambarbaini Ancient Temple in Lavkushnagar, Chhatarpur district, as a sacred site. It includes Khasra No. 2157 (0.012 hectares) and Khasra No. 2158 (30.375 hectares) of hilly land. The declaration will ensure better conservation and development of the temple site.