India: Karnataka to hike bus fare after free ride scheme for women proves expensive

The Congres government is planning to hike Karnataka State Road Transport Corporation (KSRTC) bus fare by at least 20 per cent after reporting an operating loss of Rs 295crore ($35 million) in the last three months.

Chief Minister Siddaramaiah-led state governmentlaunched the Shakti scheme last year after coming to power under which women are allowed to ride the state buses free of cost.

It was one of the major poll planks of the party that became an instant hit with the women. However, the scheme's monetary repercussions have outweighed the electoral gains in only a year.

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KSRTC Chairman SR Srinivas emphasised the need to increase ticket prices to keep the department afloat.

"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,"news wire agency PTI quoted Srinivas as saying, who added thatsome employees had not received any salary hike since 2020.

"A board meeting on Friday resolved to increase bus fares and bring this to the chief minister's attention," he added.

However,Transport Minister Ramalinga Reddy refuted the claims that there was no proposal for such a hike.

“KSRTC may have passed a resolution, but it will take at least a week to reach me. Let all the four transport corporations (KSRTC, BMTC, NWKRTC and KKRTC) send me a proposal then we will decide,” he said. The number of women beneficiaries using the Shakti scheme has gone up from 80 lakh to 1 crore, a 20 per cent increase,"Reddywas quoted as saying by The New Indan Express.

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'Bus services are essential'

Srinivas said the department had requested for a 15 to 20 per cent fare hike, pending approval from the chief minister.

"Bus services are essential. If a bus driver doesn't show up, a village may lose its bus service for the day. We've incurred a loss of Rs 295 crore in the last three months due to the Shakti scheme."

In an attempt to reduce the losses, KSRTC is also expected to cancel trips that cannot fetch at least Rs 60/km.

State Finance Minister KN Balagopal said despite the poor returns from KRSTC, the government would continue to provide assistance.

“Even during the financial crisis, the government had sanctioned Rs 650 crores ($77 million) to KSRTC in March. Even as the amount set aside for KSRTC is Rs1000 crores ($119 million), the government had released Rs 2250 crores ($269 million) to them," saidBalagopal.

While Balagopal refused to point Shakti scheme as one of the reasons that exacerbated the losses, North Western Karnataka Road Transport Corporation (NWKRTC) Chairman Raju Kage said the poll promise made by Congress was largely responsible for the losses.

(With inputs from agencies)