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With thousands of crores tied up in Shakti reimbursements and fresh spending commitments on buses and infrastructure, the government is once again looking at increased fares
The KSRTC, BMTC, KKRTC and NWKRTC are under severe financial strain, with the government now looking at their books before taking a final call on increasing fares. (PTI)
Karnataka’s four transport corporations are bleeding financially, with their combined liabilities now at Rs 8,095 crore. Staring at this mounting crisis is yet another bus fare hike, which will have to pass through the Cabinet before it can become a reality.
With the corporations carrying Rs 8,095 crore in liabilities, thousands of crores tied up in Shakti reimbursements and fresh spending commitments on buses and infrastructure, the government is once again looking at the increased fare card.
The KSRTC, BMTC, KKRTC and NWKRTC are under severe financial strain, with the government now looking at their books before taking a final call on increasing fares.
A committee headed by retired officer Atul Tiwari will examine the financial health of the four corporations. Its report is expected to be submitted to the government and will be crucial to the next step on yet another bus fare hike. Once the report is in, the proposal will go before the Cabinet, which will take the final call on the fare revision.
Karnataka Transport Minister Byrathi Suresh has said the corporations are struggling financially and are finding it difficult to meet even their routine expenses, adding that there needs to be a resolution. However, Suresh blamed it squarely on the Centre’s decision to increase fuel prices.
This is not Karnataka’s first fare revision in recent years.
In January 2025, the government approved a 15 per cent increase in fares across the four transport corporations, citing higher fuel, salary and operational costs. Before that, fares had gone up by 12 per cent in 2020 for KSRTC, NWKRTC and the then North Eastern Karnataka Road Transport Corporation, while BMTC was kept out of that revision.
The biggest pressure point is the Shakti scheme, the free bus service for women in Karnataka announced as the first freebie by the Congress as soon as it came to power.
Of the Rs 8,095 crore liability, Rs 5,648 crore is pending from the government as reimbursement for free travel under Shakti. Since the scheme was launched on June 11, 2023, the four corporations have incurred Rs 22,230 crore towards free travel. The government has released Rs 15,305 crore so far.
That gap in reimbursement has now become a major cash-flow problem for the corporations.
The Shakti scheme was introduced as one of the Congress government’s flagship welfare measures, giving women domiciled in Karnataka free travel on eligible non-air-conditioned state-run buses.
The Karnataka government is also preparing to distribute free smart cards to one crore women under Shakti. The first phase is estimated to cost around Rs 250 crore, with Rs 150 crore coming from the state and the balance being borne by the four transport corporations. This too will further stress the coffers of the corporations.
Karnataka has also taken a call to take a Rs 2,000-crore loan from the Centre for new bus depots and the upgradation of existing bus stations.
The government has also secured approval to bring 4,500 electric buses into the BMTC fleet under PM E-DRIVE. The project is expected to require around Rs 600 crore every year, with the overall expenditure pegged at approximately Rs 12,000 crore over 20 years.
About the Author
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously wor…Read More
October 01, 2026, 3:03 pm IST
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