Shakti scheme has not affected KSRTC’s financial losses: Minister

The state government’s Shakti scheme is one of the five guarantees that were made by the ruling Congress in Karnataka ahead of polls earlier this year.

Karnataka transport minister Ramalinga Reddy on Monday said that the Shakti scheme, which has increased Karnataka State Transport Corporation’s (KSRTC) ridership by 2 million annually, is not responsible for the corporation’s financial losses.

KSRTC has submitted a proposal to the state government to increase bus fares by 15-20% due to financial losses (PTI)

“The Shakti scheme has generated significant goodwill and brought in more travellers. It has not caused any losses,” Reddy told the media amid a proposal by the transport department to increase bus fares by 15 to 20%.

Addressing the potential fare hike, he clarified, “I have no proposal in front of me yet, and nothing has been approved.”

The state government’s Shakti scheme provides free bus travel for women within the state. The scheme is one of the five guarantees that were made by the ruling Congress in Karnataka ahead of polls earlier this year. Under the scheme, women from the state are eligible to travel for free on non-luxury public transport buses in the state.

KSRTC has submitted a proposal to the state government to increase bus fares by 15-20% due to financial losses. According to Reddy, these losses are driven by the rising cost of fuel, spare parts, and employee salaries, without any fare adjustments in nearly a decade.

Reddy attributed KSRTC’s financial difficulties to rising fuel prices. “Why blame Shakti when we have added 2 million travellers? The losses we are incurring are due to the hike in petrol and diesel prices. The salaries of our employees have gone up. Let the numbers speak. Karnataka pays the Central government ₹4.5 lakh crore in taxes. Our tax payment is more than the financial budget of the state, but is the Centre giving us any relief?” he said.

KSRTC chairman SR Srinivas said that the operating loss of ₹295 crore in the past three months was due to the Shakti scheme. “The rise in ticket prices is inevitable. We held a meeting two days ago and decided to send a proposal for a 15-20% hike in bus fares. The hike is needed for the survival of KSRTC, which is incurring huge losses after implementing the Shakti scheme,” he said.

Another officer of the department however said that the revenue was ₹2,738 crore in 2016, ₹2,975 crore in 2017, ₹3,131 crore in 2018, ₹3,182 crore in 2019, ₹1,569 crore in 2020 , ₹2,037 crore in 2021, and ₹3,349 crore in 2022.

Responding to the proposed price hike in KSRTC, BJP state president BY Vijayendra said, “Everywhere, KSRTC is increasing prices. Milk prices have increased, petrol and diesel rates have increased, and stamp duty has also increased. On the other hand, in the name of guarantees, the hike in prices has caused a loss to the common man. The hands of the government are tied because of their guarantees.”