Bengaluru:
Karnataka’s state-run transport corporations are grappling with a series of financial challenges that have significantly increased their operational burden, prompting discussions about a possible bus fare revision.
Sources said the recent 12.5% salary hike for employees is expected to impose an additional financial burden of Rs 873.64 crore on the transport corporations. Rising fuel costs have further compounded the situation, with an increase of Rs 7.81 per litre in diesel prices adding an estimated Rs 395 crore to operational expenses.
The corporations are also facing pressure from salary arrears. A total of Rs 1,271 crore is required for arrear payments, of which only Rs 450 crore has been released so far, leaving a balance of Rs 821 crore.
Officials have pointed out that while passenger fares were revised effective January 5, 2025, the increase in diesel prices and employee salaries has made another fare hike necessary.
Another major concern is the impact of the Shakti scheme, which enables free bus travel for women across the state. Since the scheme’s implementation, the proportion of non-Shakti passengers, primarily male commuters, has declined from 48% to 36%. This has affected daily cash inflows and created liquidity challenges for the transport corporations.
Collectively, the four state transport corporations are estimated to have liabilities of around Rs 6,000 crore, including provident fund obligations, diesel expenses, gratuity payments, and pending dues to retired employees.
