KSRTC Proposes 20% Bus Fare Hike Amid Financial Losses Due to Shakti Scheme
KSRTC Proposes 20% Bus Fare Hike Amid Financial Losses Due to Shakti Scheme
Bangalore, July 15, 2024 — The Karnataka State Road Transport Corporation (KSRTC) is proposing a significant bus fare hike of up to 20% in response to substantial financial losses. Over the past three months, the corporation has reported a loss of Rs 295 crore, attributing the deficit to the Shakti scheme, which provides free bus travel for women in Karnataka.
KSRTC Chairman SR Srinivas stressed the urgency of the fare increase to ensure the department’s sustainability in the face of rising inflation. “A board meeting on Friday resolved to increase bus fares and bring this to the chief minister’s attention,” Srinivas announced.
The Shakti scheme, while popular among women, has significantly strained KSRTC’s finances. The free travel provision has led to reduced revenue, necessitating measures to balance the corporation’s budget. The proposed fare hike is seen as a critical step to offset the losses incurred.
”Without this fare increase, we may face severe operational challenges,” Srinivas explained. “Inflation has driven up our costs, and we need to adjust fares accordingly to maintain service quality and coverage.”
The proposal for the fare hike will be presented to Karnataka Chief Minister Siddaramaiah for approval. The KSRTC board anticipates a careful consideration of the financial implications and the potential impact on commuters. The fare adjustment is intended to stabilize the corporation’s financial health without severely affecting the public.
Public response to the proposed hike has been mixed. Some commuters express concern over the increased financial burden, while others acknowledge the necessity given the economic circumstances. The KSRTC assures that the fare hike is a last resort to preserve the quality and extent of services provided.