Karnataka Considers 15% Bus Fare Hike Amid KSRTC Losses
Karnataka is facing a pivotal moment as the state’s public transport corporations, including the Karnataka State Road Transport Corporation (KSRTC) and Bengaluru Metropolitan Transport Corporation (BMTC), contemplate a significant 15% increase in bus fares. This proposed fare hike comes in response to mounting financial strains faced by these public transport entities, with rising operational costs and widening revenue deficits posing serious challenges to their sustainability. The move, currently under deliberation, aims to bridge the widening gap between revenues and expenditures, a gap that has only grown with the increasing costs of fuel and spare parts, alongside new welfare schemes.
The current fare structure has remained stagnant for over a decade, with the last major revision taking place in 2010 when diesel prices were at ₹30 per litre. In 2020, a hike was implemented by three of the state-run corporations to address rising fuel costs, which saw diesel prices touch ₹60 per litre. However, BMTC, despite facing similar financial pressures, has kept its fares unchanged for nearly 14 years. With the price of diesel now rising sharply again, it has become clear that a fare revision is no longer avoidable if the transport corporations are to continue operating without incurring unsustainable losses.
The situation is particularly dire for KSRTC, which has reported a staggering ₹295 crore loss in just the past three months. Key contributors to this deficit include the skyrocketing fuel prices, higher costs for spare parts, and the financial burden of the Shakti scheme, a government initiative providing free bus travel to women across the state. While the scheme has been lauded for promoting women’s mobility and empowerment, its financial impact on KSRTC’s operations has been significant. As these schemes expand, the need for additional revenue sources becomes even more critical to ensure the long-term viability of the state’s public transport network.
In addition to the immediate financial concerns, the proposed fare hike raises questions about the sustainability of Karnataka’s transport system in the long term. A fare increase could ease the financial burden in the short term, but it may also deter the public from using buses, especially in a state where many citizens rely on affordable public transport. This could exacerbate the traffic congestion problems in cities like Bengaluru, which already suffer from overburdened infrastructure. From an environmental perspective, encouraging the use of public transport is crucial in reducing the carbon footprint, but higher fares could push people towards private vehicles, undermining sustainability goals.
Looking ahead, the Karnataka government will need to carefully balance the need for fiscal health with the long-term sustainability of its public transport system. Exploring alternative funding mechanisms, such as partnerships with the private sector, improving operational efficiency, and exploring greener technologies, could help reduce reliance on fare increases. Ultimately, ensuring that public transport remains affordable and accessible is key to both the economic and environmental health of the state. With rising fuel costs and the financial pressure on the transport corporations, Karnataka’s decision on the fare hike could have significant implications for the future of public transportation in the state.
