The Karnataka government has approved a 15% hike in bus fares for KSRTC, KKRTC, NWKRTC, and BMTC starting January 5, 2025. The hike excludes the Shakti scheme for free travel for women in regular services but applies to premier services. The revision, aimed at addressing rising costs and employee demands, is expected to generate ₹74.8 crore in additional monthly revenue for RTCs.
Details of the Fare Hike
The fare hike, approved during a cabinet meeting led by Chief Minister Siddaramaiah, is the first revision in over a decade for BMTC and five years for the other RTCs. Key highlights include:
- Exclusions: Women benefiting from the Shakti scheme can still travel free on regular buses, but fares apply to premier services.
- Additional Revenue: The increase is expected to add ₹74.8 crore per month to RTC coffers.
Reasons Behind the Fare Increase
Rising Operational Costs
Law Minister HK Patil stated that the hike was necessitated due to:
- Diesel Prices: Daily diesel expenses increased from ₹9.2 crore to ₹13.2 crore in five years.
- Employee Salaries: Daily salary expenditures rose from ₹12.8 crore to ₹18.3 crore in the same period.
- Maintenance Costs: Higher upkeep costs for the fleet.
Employee Pension Scheme
Funds from the fare hike will support the recently approved pension schemes for RTC employees, as well as address salary revisions demanded by unions.
Impact on Commuters
While the fare hike affects male commuters, women using regular RTC services under the Shakti scheme remain unaffected. Of the 1.2 crore daily RTC passengers, 65 lakh are women.
Transport Minister Ramalinga Reddy emphasized that the state government will continue bearing the cost of the Shakti scheme despite financial challenges.
Financial Challenges and Govt Support
- Arrears: RTCs were burdened with ₹5,900 crore in arrears under the previous government.
- Increased Costs: Diesel, salaries, and other operational expenses have surged significantly over the years.
- Govt Initiatives: The hike is part of efforts to stabilize the finances of RTCs and prevent future disruptions.
Union Demands and Strike Threats
Employee unions have been demanding salary revisions and parity with government employees. The fare revision seeks to address these demands while avoiding potential strikes.
