The Karnataka Cabinet approved a 15% hike in fares for state-run buses, effective January 5, citing rising operational costs. The increase is expected to generate an additional Rs 74.85 crore per month for the state’s four transport corporations: Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North West Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC).
Briefing the press after the meeting on Thursday, January 2, Law and Parliamentary Affairs Minister HK Patil said the fare revision was unavoidable due to increased expenses. Since January 2015, daily diesel costs have risen from Rs 9.16 crore to Rs 13.21 crore, while labour expenses have jumped from Rs 12.85 crore to Rs 18.36 crore. The combined increase in operational costs amounts to Rs 9.56 crore per day.
The fare hike marks the first revision since 2020 for KSRTC, NWRTC, and KKRTC, while BMTC fares have remained unchanged since 2014. "On January 10, 2015, Bengaluru Metropolitan Transport Corporation (BMTC) prices were last revised... marking the first revision in 10 years. Back then, the daily diesel expense for Karnataka's four transport corporations stood at Rs 9.16 crore, which has now surged to Rs 13.21 crore,” Minister Patil said.
The daily staff expenses for these transport corporations, which were Rs 12.85 crore, have also risen to Rs 18.36 crore, adding an additional burden of Rs 9.56 crore per day. Considering these factors, the fare revision was implemented, Minister Patil said.
All transport corporations, including city buses and luxury buses, have been subjected to a 15% fare increase. This is expected to generate an additional monthly revenue of Rs 74.85 crore, he said.
For Shakti, the free travel for women scheme, Rs 5,015 crore has been allocated in the current financial year, with a monthly grant of Rs 417.92 crore being released to the four corporations. The minister further said that this will not burden the state's treasury and emphasised that Karnataka has been implementing excellent financial responsibility.
Minister for Transport Ramalinga Reddy, reacting to the development, stated that a unanimous decision has been taken to hike the bus fare. "The KSRTC needs to provide salaries and survive. Though the profit has increased, at the same time expenditures have also gone up," Minister Reddy stated.
“The Shakti free travel scheme for women in RTC buses across the state has benefitted. The previous BJP government has left thousands of crores of loans. During our tenure, there has been no crisis as far as the disbursement of salaries is concerned. There was an issue with the previous BJP government regarding the salaries of staff. When compared to other states, the ticket price in the state is lesser,” Reddy said.
"Our government has the responsibility of paying the loans taken during the previous regime. The profits have gone up nearly to Rs 1,000 crore. It is not a new year shocker. The hike was pending and we have done it now. The decision is taken to save the organisation," Minister Reddy said.
The hike also comes in the wake of demands from the Karnataka State Road Transport Employees Joint Act Committee, which had called for the government to clear Rs 8,010 crore in dues owed to the corporations. This includes Rs 2,000 crore linked to the Shakti scheme, which offers free bus travel to women, Rs 1,785 crore in salary arrears, Rs 2,900 crore in Provident Fund dues, and Rs 325 crore in pending dearness allowance payments.
The employees’ committee initially announced a state-wide shutdown for January 31 but later decided to withdraw the plan.
To partially address these liabilities, the state government will offer a loan guarantee, enabling the transport corporations to raise Rs 2,000 crore from financial institutions.
In a bid to justify the hike, the KSRTC released full-page advertisements across major newspapers on Friday, January 3. The corporation highlighted the financial strain caused by rising diesel prices and staff costs, citing these as key reasons for the fare revision.
KSRTC pointed out that even after the hike, its fares remain lower than those of neighbouring states. It compared per-kilometre charges with Andhra Pradesh, Telangana, and Maharashtra. In a comparison, Karnataka's city service fare is 81.47 paise per kilometre, lower than Andhra Pradesh (123.24 paise), Telangana (131 paise), and Maharashtra (145 paise). For ordinary services, Karnataka charges 65.90 paise, compared to 102 paise in Andhra Pradesh, 104 paise in Telangana, and 145 paise in Maharashtra. For Rajahamsa/Deluxe services, Karnataka’s 145 paise is still the lowest.
Condemning the decision to increase ticket fares, state BJP president BY Vijayendra stated: "Chief Minister Siddaramaiah, how can you boast to the people of Karnataka that you have delivered the 'Panchabhagya' schemes? While failing to allocate funds for the Shakti Scheme, you have now caused the state transport corporations to tread a path of losses.
"By increasing bus fares by 15%, you have essentially drawn a burden on the people who rely on the public transport system. The slogan now seems to be: “Free for women, but at the cost of men."
Leader of the Opposition R Ashoka said: "Since coming to power, the Congress-led Karnataka government has been relentlessly burdening common people through price hikes and tax increases. The latest blow is a 15% hike in bus fares.”
(with inputs from IANS)