Bhubaneswar: The Odisha government has ordered a comprehensive review of the Chief Minister Bus Service (MBS), the rebranded version of the LAccMI (Location Accessible Multi-Modal Initiative), along with the Atal Bus Stand (formerly Ama Bus Stand scheme.
This follows a series of objections raised by the Accountant General (Audit-II), Odisha, regarding financial management, implementation, and operational aspects of these flagship public transport programmes.
The Commerce and Transport Department has initiated an examination of the flagged issues, which primarily concern fund utilisation, timely submission of utilisation certificates (UCs), the engagement of consultants, and the rollout of free travel facilities.
Significant Unspent Funds Highlighted
Audit observations indicate that approximately Rs 2,806 crore was released for the LAccMI/MBS scheme between 2023-24 and 2025-26. However, substantial amounts remained unutilised at the close of each financial year: Rs 153.56 crore in 2023-24, Rs 369.18 crore in 2024-25, and Rs 478.36 crore in 2025-26. The Accountant General has sought explanations for the persistent unspent balances and the rationale behind seeking additional allocations despite these carryovers.
Concerns have also been raised over delays by the Odisha State Road Transport Corporation (OSRTC) in submitting expenditure reports and UCs, with records reportedly missing after the third quarter of 2024-25.
Scrutiny of Consultant Appointment and Free Student Travel
The appointment of the Delhi Integrated Multi-Modal Transit System (DIMTS) as a consultant for the LAccMI scheme has come under the scanner. DIMTS was engaged in October 2023 for an initial six-month period at a monthly fee of around Rs 2.14 crore, with the contract later extended. Auditors are seeking details on whether any Expression of Interest (EOI) or market survey preceded the appointment, along with performance evaluations and the consultants’ qualifications.
The free bus travel facility for school students under the MBS, introduced in December 2025 (up from a previous 50% concession), is also being examined. The audit has demanded information on student verification mechanisms, the revenue loss to the exchequer, compensation paid to operators, and any impact assessment studies, particularly regarding potential reductions in school dropout rates. Monthly and quarterly progress reports have been requested.
Atal Bus Stand and Water Transport Initiatives
Similar scrutiny applies to the Atal Bus Stand scheme. Auditors have sought comprehensive details on sanctioned funds, actual expenditure, operation and maintenance costs, unspent amounts, and any alleged diversion of scheme funds.
Water transport components under the broader LAccMI umbrella, including ferry services, jetty construction, and private boat engagements, are likewise under review for fund utilisation.
The MBS scheme has faced earlier criticism for operational losses during its initial phases under the previous regime, with reports indicating losses exceeding Rs 374 crore in roughly 10 months of early operations. The current government has rerouted over 1,400 buses and claims improved efficiency.
Government’s Response
Transport Minister Bibhuti Bhusan Jena assured that the government would thoroughly examine the AG’s report and take corrective action where required. “The government is a continuous process. Issues relating to losses under the LAccMI scheme during the previous regime had come to light. We are using resources appropriately and there will be no financial irregularities under our government,” he stated.
He highlighted the rerouting of 1,422 buses under the MBS to enhance service delivery.
