Karnataka state cabinet increases bus fares by 15% hike from Jan 5; check details

The bus fares of four state transport corporations in Karnataka, including KSRTC and BMTC, were increased by 15% by the Karnataka Cabinet on January 2. Law and Parliamentary Affairs Minister HK Patil, after the cabinet meeting, announced that the fare hike will take effect from January 5. 

Patil attributed the decision to the significant rise in operational costs, such as increased expenditure on fuel prices and staff salaries. He noted that this is the first fare hike for KSRTC, NWKRTC, and KKRTC since 2021, and for BMTC since 2015.

Patil added that BMTC bus fares were last raised on January 10, 2015, when diesel prices were Rs 60.90 per litre. Since then, daily diesel consumption across the four corporations has increased from Rs 9.16 crore to Rs 13.2 crore. 

Additionally, daily staff salaries have risen from Rs 12.95 crore to Rs 18.36 crore. In light of these changes, Patil emphasized the necessity of the fare revision.

The continuation of the 'Shakti' guarantee, offering complimentary rides to women on state-owned non-AC buses throughout the state was confirmed. "The proposed fare hike is projected to increase monthly revenue by Rs 74.85 crore," he stated. 

Patil assured that despite the increase, bus fares in Karnataka will remain competitive, lower than neighboring states like Andhra Pradesh, Telangana, and Maharashtra.

Patil announced that the state Cabinet has approved a proposal for the government to guarantee obtaining loans of Rs 2,000 crore from financial institutions for four Regional Transport Corporations (RTCs). This includes funds for the payment of outstanding statutory dues, such as provident fund and fuel payments, up to November 2024.

The planned indefinite strike by RTC employees on December 31 has been postponed. The fare hike is a response to rising operational costs and significant revenue gaps.

As of November 2024, the total consolidated liabilities of the four RTCs amount to Rs. 6,330.25 crore. These liabilities include dues such as Provident Fund, gratuity, fuel supply arrears, pension, and other obligations.