The Congress government in Karnataka plans to increase bus fares by at least 20 percent for the Karnataka State Road Transport Corporation (KSRTC). This decision comes after KSRTC reported a loss of Rs 295 crore ($35 million) in the last three months. Last year, under Chief Minister Siddaramaiah’s leadership, the government introduced the Shakti scheme, allowing women to travel for free on state buses. This scheme was a popular promise during elections but has led to significant financial losses within just a year.
KSRTC Chairman SR Srinivas stressed the necessity of raising ticket prices to sustain the department. He highlighted that bus fares have not been increased since 2019, despite rising fuel costs and the need to cover employee salaries and benefits. A recent board meeting has proposed a fare hike of 15 to 20 percent, pending approval from the chief minister.
Srinivas also mentioned that KSRTC incurred a substantial loss due to the Shakti scheme, amounting to Rs 295 crore in three months. To mitigate these losses, KSRTC plans to cancel trips that do not generate at least Rs 60 per kilometer.
State Finance Minister KN Balagopal assured continued government support to KSRTC despite its financial challenges. He noted that the government allocated Rs 650 crores ($77 million) in March and a total of Rs 2250 crores ($269 million) to KSRTC to help manage its operations.
Although Balagopal did not directly blame the Shakti scheme for exacerbating the losses, NWKRTC Chairman Raju Kage attributed a significant portion of the financial downturn to this election promise made by the Congress party.
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