BENGALURU, 18 JUNE

Four State bus corporations Bengaluru Metropolitan Transport Corporation (BMTC), Karnataka State Road Transport Corporation (KSRTC), Northwest Road Transport Corporation (NWRTC) and Kalyan Karnataka Transport Corporation (KKRTC) have proposed a 25 per cent increase in KSRTC bus fares.

While talking to Salar News, a senior official from the KSRTC said 45 per cent of KSRTC's revenue now being spent on diesel. There is a clear gap between the claimed revenue from the government and the actual revenue. He said the corporation's diesel expenditure has increased from Rs 3 crore to Rs 5 crore. The transport Corporations hopes that the government will approve at least a 12 per cent hike. The top officials from the KSRTC confirmed Salar News that it is very difficult to manage the costs of the bus maintenance.

KSRTC saw a rise of Rs 3,930 crore in six months compared to the revenue of Rs 3,349 crore in 2022-2023 but the KSRTC claims that 50 percent of this revenue is used only for diesel.

Transport Minister Ramalinga Reddy's office told Salar news, “We are planning to have a meeting about the price hike and I have notified the department to give me a detailed list of estimated costs to analyse the requirement of the price hike.”

However, Chief Minister Siddaramaiah on Tuesday has clarified that there will be no fare increase for now. The State currently has as nearly 24.48 lakh buses.

Unlike the National Highways Authority of India (NHAI), which annually adjusts toll prices based on the Wholesale Price Index (WPI), KSRTC demands its own formula for fare adjustments. The official noted that with a 20 per cent increase in employee salaries and a 46 per cent rise in diesel and spare parts costs, a 40 per cent fare increase is necessary to avoid losses.

The corporation typically receives budget grants for new buses, employee salary increases, and additional bus station construction. However, since the implementation of the Shakti scheme, the State government has not provided any grants, forcing KSRTC to rely solely on its revenue. -Salar News