KSRTC Faces Rs 295 Crore Loss, Plans 20 Per Cent Fare Hike To Stay Afloat As Shakti Scheme Increases Burden

The Karnataka State Road Transport Corporation (KSRTC) is considering a bus fare increase of up to 20 per cent in response to a significant financial shortfall.

The corporation reported a loss of Rs 295 crore over the past three months, attributing it to the Shakti scheme, which offers free bus travel for women in Karnataka.

KSRTC Chairman SR Srinivas highlighted the urgent need for a fare hike to maintain the department's operations amidst escalating inflation. "A board meeting on 12 July, Friday, resolved to increase bus fares and bring this to the chief minister's attention", an India Today report quoted Srinivas as saying.

Srinivas emphasised the financial strain on the corporation’s employees, whose salaries have not been adjusted since 2020. He explained the crucial role of bus services, noting, "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."

The proposal requests a fare increase of 15-20 per cent, awaiting the chief minister’s approval. Srinivas warned, "If the fare isn't increased, the KSRTC won't survive."

Raju Kage, Chairman of the North Western Karnataka Road Transport Corporation (NWKRTC), echoed similar concerns. He pointed out that the Shakti scheme, part of Siddaramaiah's government’s guarantees, has significantly impacted finances. "We haven't increased bus fares in the last 10 years," Kage noted, adding, "The department is in loss, but we're still managing."

This fare hike proposal aims to address the financial challenges and ensure the continuity of essential bus services across Karnataka.