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Karnataka Bus Fare Hike Looms as Transport Corporations Face Rs 8,000 Crore Debt
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News18•01-10-2026, 15:03
Karnataka Bus Fare Hike Looms as Transport Corporations Face Rs 8,000 Crore Debt
- •Karnataka's four transport corporations (KSRTC, BMTC, KKRTC, NWKRTC) are facing severe financial strain with combined liabilities reaching Rs 8,095 crore.
- •A potential bus fare hike is on the table, awaiting Cabinet approval, to address the mounting financial crisis.
- •A significant portion of the liability, Rs 5,648 crore, is due to pending government reimbursements for the Shakti scheme, which offers free bus travel for women.
- •Since its launch in June 2023, the Shakti scheme has incurred Rs 22,230 crore in free travel costs, with only Rs 15,305 crore reimbursed by the government, creating a major cash-flow problem.
- •An expert committee led by Atul Tiwari will assess the corporations' financial health, and its report will be crucial for the final decision on fare revision.
Key Questions Answered
Karnataka's four transport corporations are facing severe financial strain with liabilities crossing Rs 8,000 crore. The primary pressures include massive pending reimbursements under the free-travel Shakti scheme for women, rising diesel prices, and increasing operational and salary costs.
The Bengaluru Metropolitan Transport Corporation (BMTC) has requested a 44 per cent fare increase, while the Karnataka State Road Transport Corporation (KSRTC) has proposed a 33 per cent hike for its services.
A Public Transport Fare Regulatory Committee headed by retired IAS officer Atul Kumar Tiwari has been formed to examine the financial health and accounts of the four transport corporations before a final cabinet decision on the fare hike.
