KSRTC proposes bus fare hike after free rides costs state Rs 295 crore loss
After suffering a Rs 295 crore loss, the Karnataka State Road Transport Corporation (KSRTC) has proposed a hike in bus fare by 15 to 20 per cent.
The Karnataka State Road Transport Corporation (KSRTC) plans to propose a bus fare hike of up to 20 per cent. The KSRTC reported a significant loss of Rs 295 crore in the last three months due to the Shakti scheme, which provides free bus travel for women in Karnataka.
KSRTC Chairman SR Srinivas emphasized the necessity of increasing ticket prices to sustain the department amid rising inflation. “A board meeting on Friday resolved to increase bus fares and bring this to the chief minister’s attention,” Srinivas said.
He highlighted the financial strain on staff whose salaries have not been revised since 2020.
“Bus services are essential. If a bus driver doesn’t show up, a village may lose its bus service for the day. We’ve incurred a loss of Rs 295 crore in the last three months due to the Shakti scheme,” Srinivas explained.
Srinivas requested a 15-20 per cent fare hike, pending approval from the chief minister.
“If the fare isn’t increased, the KSRTC won’t survive,” he warned.
North Western Karnataka Road Transport Corporation (NWKRTC) Chairman Raju Kage also noted that the losses stem from the Shakti scheme, one of five guarantees by Siddaramaiah’s government, which marked its first year on June 11, 2024.
“We haven’t increased bus fares in the last 10 years,” Kage said, adding, “The department is in loss, but we’re still managing.”
