KSRTC faces Rs 295 crore loss, proposes 20% fare hike

After increasing the price of milk and hiking sales tax on petrol and diesel, the Congress government is likely to increase KSRTC bus fares.The Karnataka State Road Transport Corporation (KSRTC) plans to propose a bus fare hike of up to 20 per cent, citing significant financial losses. Over the past three months, the KSRTC reported a loss of Rs295 crore, primarily due to the Shakti scheme, which offers free bus travel for women in the state. KSRTC Chairman SR Srinivas stressed the urgency to increase ticket prices to keep the department afloat. "A board meeting on Friday resolved to increase bus fares and bring this to the chief minister's attention," PTI quoted Srinivas as saying. Srinivas underscored the financial difficulties faced by the staff, whose salaries have not been revised since 2020. He has proposed a fare hike of 15-20 per cent, pending the chief minister's approval. "If the fare isn't increased, the KSRTC won't survive," he warned.“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.
Meanwhile, North Western Karnataka Road Transport Corporation (NWKRTC) Chairman Raju Kage also attributed the losses to the Shakti scheme. This scheme is one of the five guarantees promised by the Congress government led by CM Siddaramaiah, which celebrated its first year on June 11, 2024. "We haven't increased bus fares in the last 10 years," Kage remarked, adding, “The department is in loss, but we're still managing.” 
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.

(Stae Correspondent)