Karnataka has released Rs 530 crore to four state-run road transport corporations to clear diesel dues and reimburse costs under the Shakti free bus travel scheme for women, easing immediate financial pressure on the agencies that operate public bus services across the state.
The release includes Rs 100 crore for pending diesel bills and Rs 430 crore to reimburse expenditure incurred under the Shakti scheme. The government has also released nearly Rs 64 crore to support free bus travel for school and college students, according to details reported by the Times of India.
The funds were released after the transport corporations approached the state government for assistance in clearing outstanding fuel bills. The corporations had reported pending dues of Rs 1,124 crore to Hindustan Petroleum Corporation Ltd, highlighting the scale of the cash-flow pressure facing the state’s public transport system.
The four transport undertakings consume around 16.2 lakh litres of diesel every day and spend approximately Rs 488 crore each month on fuel procurement. The fuel bill is a recurring operational obligation, while reimbursements for concessionary or free travel depend on government transfers to compensate the corporations for the revenue they do not collect from eligible passengers.
The Rs 430 crore released for the Shakti scheme will be distributed among the four corporations. The Karnataka State Road Transport Corporation will receive Rs 164 crore, while Bengaluru Metropolitan Transport Corporation will receive Rs 78.4 crore. The North Western Karnataka Road Transport Corporation has been allocated Rs 105 crore and the Kalyana Karnataka Road Transport Corporation Rs 81.8 crore.
The Shakti scheme provides free bus travel to women in Karnataka and has made state-run buses an important part of daily mobility for eligible passengers. In Bengaluru, the BMTC allocation will support the corporation’s reimbursement claims, while the other allocations will assist transport providers serving towns, cities and intercity routes across the state.
The release comes as the transport corporations manage two distinct financial requirements: immediate payment obligations to fuel suppliers and reimbursement claims arising from government-backed fare concessions. The separation of the allocations indicates that the government’s latest intervention is intended both to address operational liabilities and to meet commitments linked to the free travel programme.
The latest funding does not remove the underlying requirement for regular financial transfers. The corporations’ reported diesel consumption and monthly fuel expenditure show how quickly unpaid bills can accumulate when operating costs rise or reimbursements are delayed. The next step is for the transport undertakings to use the released funds to settle the specified diesel liabilities and process the pending Shakti-related expenditure.
