The Karnataka State Road Transport Corporation (KSRTC) has proposed a bus fare hike of up to 20 per cent following a reported loss of Rs 295 crore over the last three months. This decision has stirred controversy in the state as the Opposition Bharatiya Janata Party (BJP) and others attributed the losses to the Shakti scheme, which offers free bus travel for women in Karnataka.
KSRTC staff received no salary hikes since 2020
KSRTC Chairman SR Srinivas has emphasised the need to increase travel ticket prices to sustain operations amid rising inflation.
“A board meeting on Friday resolved to increase bus fares and bring this to the Chief Minister’s attention,” Srinivas said to news agency PTI. He highlighted the critical nature of bus services, pointing out the significant impact on communities when bus services are disrupted.
“The last bus ticket price increase was in 2019. It has been five years since then without any increase. Due to the rise in oil prices, a fare hike is inevitable. To increase salaries and provide benefits to employees, adjusting the rates is necessary,” Srinivas said.
Srinivas added that salary revisions for KSRTC employees have not occurred since 2020, further necessitating the fare increase. The corporation has also proposed the purchase of 40 new Volvo buses to the government, having already procured 600 regular buses.
Srinivas requested a 15-20 per cent fare hike, pending approval from the chief minister, warning that without this increase, KSRTC may not survive.
Shakti scheme contributing to KSRTC losses?
When the news of the proposal to hike prices was released, BJP leaders, including Tejasvi Surya, criticised the Congress-led government over the potential fare hike, labeling it as part of the party’s “Khatakhat Model of Governance.”
North Western Karnataka Road Transport Corporation (NWKRTC) Chairman Raju Kage also stated that the Shakti scheme, one of the five guarantees by Siddaramaiah’s government, has contributed to the losses. However, Kage also pointed out that bus fares have not been increased in the last 10 years, despite rising costs of fuel and auto parts.
No proposal to hike bus fee submitted
The Karnataka Congress refuted reports of an imminent fare hike. On social media platform X, the party stated that no such proposal had been presented to the government by the transport minister. They accused BJP leaders of spreading misinformation and shifted the focus to the increase in auto part prices, fuel prices, and train fares over the past decade.
The Karnataka Transport Minister Ramalinga Reddy reiterated that no proposal had been submitted and nothing had been approved.
On Monday Reddy told News18, “Why blame Shakti when we have added two million travellers? It is a scheme that has benefitted so many people. The losses we are incurring are due to hike in prices of petrol and diesel. The salaries of our employees have gone up. Let the numbers speak. Karnataka pays the Central government Rs 4.5 trillion in taxes…Our tax payment is more than the financial budget of the state, but is the Centre giving us any relief.”
The minister also shared data that showed prior to the implementation of the Shakti scheme, between June 2022 and May 2023, traffic revenue amounted to Rs 3,401.54 crore. After the launch of the scheme revenue surged to Rs 4,594.23 crore, between June 2023 to May 2024.
Impact on passengers
Addressing concerns about the fare hike disproportionately affecting male passengers, Srinivas clarified that the state government bears the costs for women traveling under the Shakti scheme, ensuring no additional burden on men.
“The rise in ticket prices is inevitable,” Srinivas told PTI.
The proposed fare hike by KSRTC aims to address significant financial losses and ensure continued service amid rising operational costs. The final decision awaits approval from the state government, while the political debate over the move highlights broader issues of governance and economic management in Karnataka.
First Published: Jul 15 2024 | 6:30 PM IST
