Bus travel in Karnataka could see an increase in fares, as all four state-operated transport corporations have put forward a proposal for a 10-12 per cent fare increase. This request has been made to the Karnataka government, which has yet to make a conclusive decision regarding the proposal. Transport officials cite rising fuel prices, increased costs related to employee salaries, and significant financial liabilities as reasons justification for the proposed fare hike.

Financial Challenges Faced by Transport Corporations

The state-run transport corporations are currently encountering multiple financial challenges that are straining their operations. Notably, a recent 12.5 per cent salary increment for employees is projected to bring an additional financial burden of Rs 873.64 crore. Furthermore, an anticipated rise of Rs 7.81 per litre in diesel costs is projected to add another Rs 395 crore to operational expenses.

Moreover, the transport corporations are grappling with unresolved employee salary arrears. They require Rs 1,271 crore to address outstanding payments, yet only Rs 450 crore has been allocated thus far, leaving an unpaid amount of Rs 821 crore. Officials have noted that the last fare revision took place on January 5, 2025. In light of escalating diesel prices and employee-related costs since that date, transport bodies have formally sought the government’s approval for fare adjustments to alleviate their financial burdens.

Another aspect of the financial challenge is the Shakti Scheme, which offers free travel for women on state-operated buses. Statistically, the proportion of non-Shakti passengers, primarily male commuters who pay fares, has reduced from 48 per cent to 36 per cent since the implementation of this initiative. Officials have indicated that this decline in paying passengers has adversely affected cash inflows, creating further challenges in managing day-to-day operational costs.

Total Liabilities of Transport Corporations

Collectively, the four transport corporations are estimated to be managing liabilities amounting to approximately Rs 6,000 crore. These liabilities encompass dues related to provident fund contributions, diesel payments, gratuity, retirement benefits, and other pending financial obligations that necessitate immediate attention. The corporations maintain that the fare adjustments are essential to cope with mounting operational expenses and to sustain public transport services across the state.

The Karnataka government is anticipated to review the fare hike proposal carefully, alongside evaluating the financial status of the transport corporations, prior to making a definitive decision regarding the fare increase. Officials have underscored the necessity for this review, given the ongoing financial strain that the corporations face, which threatens their ability to maintain efficient transportation services for the public.

The consolidation of financial concerns, including the impact of external economic factors, has prompted the transport corporations to advocate for this increase in fares. As the situation unfolds, the response of state authorities will be crucial in determining the future of bus fares and the financial stability of transport services in Karnataka.

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