K'taka govt likely to hike RTC bus fares; Minister says need to survive while running free travel scheme
Bengaluru, July 1
The Karnataka government is to increase state-run RTC bus fares following successive hikes in diesel prices, with the proposal expected to come up for approval at the next Cabinet meeting, according to official sources. Transport Minister Byrathi Suresh has indicated that a fare revision has become necessary to ensure the financial sustainability of the state-run transport corporations while continuing the Shakti free travel scheme for women.
Speaking to reporters in Bengaluru on Wednesday, Suresh said the Shakti scheme is a unique welfare initiative that provides free bus travel for women and has significantly benefited commuters across the state. However, he stressed that the transport corporations must also remain financially viable.
"The Shakti free travel scheme is a unique initiative. At the same time, our transport corporations also need to survive. If they are to remain sustainable, we will have to increase ticket prices, at least marginally," the minister said.
He said the government would carefully weigh all the pros and cons before taking a decision and would ensure that the impact on the public is kept to a minimum.
"We need additional funds to continue the Shakti scheme, and ticket prices may have to be increased. We will take an appropriate decision keeping the interests of the people in mind," he added.
Suresh also pointed out that the government has pending dues amounting to several hundred crore rupees towards reimbursement for the Shakti scheme and said the Transport Department is awaiting clearance from the Finance Department.
"There are hundreds of crores in pending dues from the government, and we will request the Finance Department to release the funds. We are waiting for its approval. How can we operate buses without paying for diesel and fuel? How can we manage without paying salaries to our drivers and conductors?" he asked.
The minister said nearly one lakh employees work across the state's four transport corporations, and ensuring timely payment of salaries remains a priority.
"We have to balance all these factors. Keeping the interests of the people in mind, we will make a decision. The transport corporations also need to survive," he said.
The Karnataka government had increased RTC bus fares by 15 per cent last year. According to official sources, the proposed fare revision is expected to take effect in the first week of July, subject to Cabinet approval.
Officials said diesel prices have been revised six times upward over the past six months, while RTC fares have remained unchanged. They said the four state-owned transport corporations are collectively incurring losses of around Rs 40 crore every month due to rising operational costs.
Apart from fuel costs, the prices of tyres and spare parts have also increased substantially, adding to the financial burden of corporations.
Officials said all four transport corporations have informed the government that a fare hike has become unavoidable. A proposal to increase fares in the range of 30 to 44 per cent has reportedly been submitted, with the final decision expected to be taken by the Cabinet. Sources said the recent increase in diesel prices has made the fare revision inevitable, and the proposal now awaits Chief Minister D.K. Shivakumar's approval.
The Shakti Scheme is one of the Karnataka government's five flagship welfare guarantees, launched on June 11, 2023. The scheme provides free travel for women on ordinary and express services operated by the state's four road transport corporations -- Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North Western Karnataka Road Transport Corporation (NWKRTC) and Kalyana Karnataka Road Transport Corporation (KKRTC).
More than 500 crore free passenger trips have been availed by women since the scheme was launched on June 11, 2023. On an average day, around 55-60 lakh women use the scheme across Karnataka.
The Karnataka government has reimbursed and allocated over Rs 8,000 crore towards the scheme since its launch, with annual expenditure estimated at around Rs 4,000 - 4,500 crore, depending on ridership and reimbursements to the four state-run transport corporations.
— IANS
Reader Comments
As a working woman who uses BMTC daily, the Shakti scheme has been a blessing. Saved Rs 3,000 per month. But I wouldn't mind a small hike if it means women still get free travel. Men already pay full fare for years - this is just fair play. Government should recover dues from their own departments first before hiking fares for public!
I've been to Bangalore for work. The buses are packed during peak hours, yet they want to increase fares? Maybe focus on efficiency first - reduce empty buses in off-peak hours, better route planning. Free scheme is popular vote-bait but sustainable only if managed properly. Rs 40 crore monthly loss is alarming.
Respecting the minister's transparency about financial issues. Not many politicians admit to pending dues and operational losses. But why not cut luxury expenses? State ministers' cars, AC buses for VIPs etc. Also, why can't they increase efficiency through digital ticketing and maintenance cost reduction? Hike should be last resort.
ಏನ್ ಮಾಡೋದು? Diesel price hikes hurting everyone. But 30-44% is too steep. KSRTC should first reduce losses from non-performing routes, check corruption in fuel procurement, and recover dues from state govt. If still needed, then a gradual 10-15% hike is acceptable. Don't punish passengers for govt's poor financial planning! 🚍
Free scheme for women is good politics but bad economics. Rs 4,000-4,500 crore annually is huge. Why not give direct cash transfer to only BPL women instead
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.