Bus fares may rise in Karnataka as transport firms grapple with Rs 6,000 crore dues
Bus travel in Karnataka may soon become costlier, with all four state-run transport corporations proposing a 10-12% fare hike, citing rising fuel costs, higher employee
Bus travel in Karnataka may soon become costlier, with all four state-run transport corporations proposing a 10-12% fare hike, citing rising fuel costs, higher employee expenses and mounting financial liabilities. The proposal has been submitted to the Karnataka government, which is yet to take a final decision on the recommendation. According to officials, the transport corporations are facing a series of financial challenges that have put their operations under strain. A recent 12.5% salary hike for employees is expected to impose an additional burden of Rs 873.64 crore.
At the same time, an increase of Rs 7.81 per litre in diesel prices is projected to add another Rs 395 crore to their expenditure. Read Full Story The corporations are also struggling to clear pending employee salary arrears. They require Rs 1,271 crore to settle outstanding dues, but only Rs 450 crore has been released so far, leaving Rs 821 crore still unpaid. Officials pointed out that passenger fares were last revised on January 5, 2025. Given the rise in diesel prices and employee-related expenditure since then, the corporations have sought permission to increase fares by 10-12% to improve their financial position.
The transport bodies have also flagged the impact of the Shakti Scheme, which allows women to travel free on state-run buses. According to official data, the share of non-Shakti passengers — primarily male commuters who pay fares — has declined from 48% to 36% since the scheme was introduced. Officials said this has led to a reduction in cash inflows, creating challenges in meeting day-to-day operational expenses. Collectively, the four transport corporations are estimated to be carrying liabilities of around 6,000 crore. These include dues related to provident fund contributions, diesel payments, gratuity, retirement benefits and other pending obligations.
The corporations have argued that the proposed fare revision is necessary to address rising operational costs, improve cash flow and ensure the continued functioning of public transport services across the state. The Karnataka government is expected to examine the proposal and the financial condition of the transport corporations before taking a final call on the fare hike. Ends
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