Bengaluru: The Karnataka cabinet has approved a 15% hike in fares for state-run buses, effective January 5, 2025, citing rising operational costs as the primary reason.
This increase is expected to generate an additional ₹74.85 crore in monthly revenue for the state’s four transport corporations, including Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North West Karnataka Road Transport Corporation (NWKRTC) and Kalyana Karnataka Road Transport Corporation (KKRTC).
Reasons for the Hike
Addressing the media on January 2, law and parliamentary affairs minister HK Patil explained the necessity of the revision. “Since 2015, operational expenses for these corporations have escalated significantly. Daily diesel costs have risen from ₹9.16 crore to ₹13.21 crore, and labour costs have jumped from ₹12.85 crore to ₹18.36 crore, creating a combined daily deficit of ₹9.56 crore.
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BMTC fares, in particular, had remained unchanged since 2014, while KSRTC, NWKRTC, and KKRTC last saw a fare hike in 2020. Minister Patil emphasized that the hike, delayed for years, was essential to sustain operations and ensure salary disbursements.
Transport minister Ramalinga Reddy added that the hike was unanimously agreed upon to stabilize the transport corporations. “While profits have improved, operational costs have outpaced revenue gains. This increase was necessary to preserve the financial health of the organizations,” he said.
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Shakti Scheme and Financial Strain
The fare hike comes amid growing financial challenges faced by the transport corporations. The Karnataka State Road Transport Employees Joint Act Committee had recently called for government intervention to clear ₹8,010 crores in dues. These include ₹2,000 crores linked to the Shakti scheme, which offers free travel for women, ₹1,785 crores in salary arrears, and ₹2,900 crores in Provident Fund dues.
To partially address these liabilities, the state government has guaranteed a loan of ₹ 2,000 crores to help the transport corporations meet immediate financial obligations. Minister Reddy defended the Shakti scheme, stating that ₹5,015 crore had been allocated in the current fiscal year, with a monthly grant of ₹417.92 crore disbursed to the transport corporations.
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Public and Political Reactions
The fare hike has drawn mixed reactions. Critics, including BJP state president BY Vijayendra, condemned the decision as a burden on the public. “While women enjoy free travel, the government has placed the financial strain squarely on men and other commuters,” Vijayendra remarked. Opposition leader R Ashoka accused the Congress-led government of exploiting the public through fare hikes and tax increases, calling it a relentless financial burden on common citizens.
In response, KSRTC released advertisements justifying the hike, highlighting that Karnataka’s fares remain lower than neighbouring states. For instance, Karnataka charges 81.47 paise per kilometre for city services, significantly less than Andhra Pradesh (123.24 paise), Telangana (131 paise), and Maharashtra (145 paise).
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Government Justifies Decision
Despite the criticism, the government insists the fare revision was overdue and crucial for the sustainability of public transport. “This is not a New Year shocker; it is a necessary step to save the organization and ensure employees are paid on time,” said minister Reddy.
The fare hike is seen as a balance between maintaining financial stability and continuing to offer affordable transport services. While it may impact daily commuters, the government believes the decision will strengthen Karnataka’s transport corporations in the long run.
