BENGALURU: Following the conclusion of the Lok Sabha elections, Karnataka’s state transport corporations, spearheaded by the Karnataka State Road Transport Corporation (KSRTC), are preparing to approach the government for approval to raise bus fares by 10-15%. The corporations argue that the fare hike is essential to counteract rising operational costs and financial strains induced by various schemes and the pandemic.
A significant factor driving the push for fare revision is the financial impact of the Shakti scheme, which offers free travel for women. This initiative, while beneficial socially, has strained the cash flow of transport utilities, which previously received direct payments from passengers. Under the new system, the transport corporations must submit claims to the finance department via the transport department for reimbursement, a process that has led to financial delays and a backlog of Rs 900 crore in dues from the previous fiscal year.
An official from KSRTC highlighted the urgency of the fare revision, noting that the last adjustment was made in 2020 for KSRTC and in 2014 for BMTC. “Operational costs, including fuel and staff salaries, have surged. The RTCs are burdened with over Rs 4,000 crore in loans. KSRTC’s operating costs have increased from Rs 3,950 crore during the last fare revision to Rs 4,828 crore now,” the official explained.
Moreover, the transport corporations are grappling with wage revision arrears amounting to nearly Rs 1,900 crore. Additionally, 20 lakh students who rely on RTC buses have not seen a fare revision for student bus passes in 13 years. This lack of timely fare adjustments, combined with the increased financial burden, necessitates an urgent fare revision to maintain the financial health of the corporations.
The financial distress caused by the Covid-19 pandemic further exacerbated the situation, leading to postponed induction of new buses. However, in the past year, the RTCs have managed to expand their fleet slightly. Despite this, the introduction of the Shakti scheme has continued to pose challenges. According to a Vashi APMC wholesale vegetable trader, “The wholesale price of tomato has risen to Rs 40 due to a demand-supply mismatch, a situation mirrored in the transport sector with operational costs outpacing revenues.”
In the previous year, the four state transport corporations issued over 223 crore tickets to women availing the Shakti scheme, spending more than Rs 5,451 crore to provide free travel. KSRTC implemented a 12% fare hike in 2020, while BMTC increased fares by 18% in 2014, only to reduce them by 1.5% the following year. As the corporations brace for another financial year, the need for a fare revision becomes more pressing. The government has allocated Rs 5,000 crore for the Shakti scheme for the current year, but additional funds are required for new bus inductions and other projects. Transport officials are exploring special grants and alternative funding options to bridge the financial gap and sustain operations.
