Karnataka mulls 15% bus fare hike to ease financial strain, KSRTC reports ₹295 crore loss: Report

The proposal now rests with Chief Minister Siddaramaiah for approval.

Updated on: Dec 30, 2024, 09:21:23 IST

By HT News Desk

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Karnataka’s state-run transport corporations, including KSRTC and BMTC, are on the brink of a crucial decision as a high-level committee has proposed a 15 per cent increase in fares. The move, aimed at addressing mounting financial challenges, comes amidst escalating operational costs and significant revenue gaps, Bangalore Mirror reported.

It’s been over a decade since a fare revision was implemented across all four state-run corporations. While three of them saw a hike in 2020 when diesel prices hit ₹60 per litre, BMTC fares have remained unchanged since 2010, when diesel was just ₹30 per litre. Now, with diesel prices climbing and financial stress mounting, a revision appears imminent.

The KSRTC alone has reported losses of ₹295 crore in the past three months. Officials point to the combined impact of surging fuel costs, higher prices for automobile parts, and the implementation of the Shakti scheme, a government initiative providing free bus travel for women, as key contributors to this deficit, the report added.

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Transport Minister Ramalinga Reddy, while reaffirming the government’s commitment to the Shakti scheme, admitted that BMTC faces daily expenses of ₹40 crore while generating just ₹34 crore in revenue. “Although there’s no outright loss, there is a noticeable delay in bridging the financial gap,” he stated according to the publication.

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Chief Minister’s nod awaited

The proposal now rests with Chief Minister Siddaramaiah for approval. While officials underscore the critical need for the hike to ensure the sustainability of public transport services, the state government faces a tough balancing act.

BMTC officials have expressed uncertainty about the potential fare revision, the report further added.

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