The Karnataka cabinet on January 2 increased the bus fares of four state transport corporations including KSRTC and BMTC by 15 percent.
Speaking to reporters after the cabinet meeting, Law and Parliamentary Affairs Minister HK Patil said that the fare hike will come into effect from January 5. "The decision was made due to the significant rise in operational costs, including increased spending on fuel prices and staff salaries" he said.
Also, read: Reversing the trend: Bengaluru's BMTC regains ridership with free bus travel for women
Patil said that this is the first fare hike for Karnataka State Road Transport Corporation (KSRTC), North West Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC) since 2021, and for Bangalore Metropolitan Transport Corporation (BMTC) since 2015.
Justifying the fare hike, Patil explained, "BMTC bus fares were last increased on January 10, 2015, when diesel prices were Rs 60.90 per litre. At that time, the four corporations had a daily diesel consumption of Rs 9.16 crore, which has now risen to Rs 13.2 crore. Similarly, daily staff salaries across these corporations has grown from Rs 12.95 crore to Rs 18.36 crore. Therefore, the revision was essential," Patil said.
Also, read: Karnataka to purchase 5,600 more buses following the success of Shakti scheme of free travel for women
He also said that the 'Shakti' guarantee, which provides free rides to women on state-owned non-AC buses across the state, will continue. "The hike will boost the four RTCs' monthly revenue by Rs 74.85 crore." he said.
Despite the increase, Patil claimed that bus fares in Karnataka will still be lower than those in Andhra Pradesh, Telangana, and Maharashtra.
Patil said the cabinet has also approved the proposal for the government to guarantee obtaining loans of Rs 2,000 crore from financial institutions for four RTCs, including for the payment of outstanding statutory dues such as provident fund and fuel payments up to November 2024.
RTC employees, who had planned an indefinite strike on various demands for December 31, later postponed it.
The fare hike comes amid escalating operational costs and significant revenue gaps.
Also, read: Women in Karnataka record over 100 crore free bus rides under Shakti scheme
Sources said that as of November 2024, the four RTCs have consolidated liabilities totaling Rs. 6330.25 crore, including Provident Fund dues, gratuity, fuel supply arrears, pension liabilities, and others.
"Payments for Provident Fund transfers, pensions, and other dues are being deferred due to cash crunch. A total of Rs 5527.4 crores is required to cover all dues, including Rs 2901.5 crore for Provident Fund arrears and Rs. 827.37 crore for fuel arrears. Of this, Rs 3728.9 crore was sought from the government," said an official.
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