Stories
Karnataka's Free Bus Scheme Bankrupts Transport Corps; Fares to Rise Amidst ₹8,000 Cr Deficit.
- •Millions of passengers in Karnataka may face higher bus fares as the state's four road transport corporations grapple with over ₹8,095 crore in liabilities.
- •The government is preparing to increase ticket prices to address the massive debt and cash crunch, following recommendations from a committee led by retired officer Atul Tiwari.
- •The Shakti scheme, offering free travel for women, has severely impacted the corporations' finances, costing ₹22,230 crore, with ₹5,648 crore in reimbursements still pending from the government.
- •Transport Minister Byrathi Suresh blames the central government's rising fuel prices for the financial deficit, warning that bus operations could halt without fare hikes or cleared arrears.
- •New initiatives like free smart cards for women and 4,500 new electric buses in Bengaluru are adding further cost pressure, with the total cost for the e-bus project estimated at ₹12,000 crore over 20 years.
Key Questions Answered
The four state road transport corporations are facing over 8,095 crore rupees in liabilities due to unpaid government reimbursements for the free Shakti scheme, rising diesel costs, and mounting maintenance bills. Transport Minister Byrathi Suresh noted that the corporations are struggling to cover daily expenses and employee salaries.
The high-level committee led by retired officer Atul Tiwari is studying the financial health, operational costs, and losses of Karnataka's four transport corporations. The committee will submit a comprehensive report providing concrete suggestions on fare hike limits and financial reforms to the state cabinet for final approval.
The Shakti scheme, which allows state-resident women to travel for free on ordinary government buses since June 11, 2023, has severely disrupted transport company finances. While 22,230 crore rupees have been spent on free travel, the government has only released 15,305 crore rupees, leaving a massive pending reimbursement of 5,648 crore rupees that created a severe monthly cash crunch.
