Story so far: Starting January 5, commuters in Karnataka are paying an additional 15% for tickets in all bus services operated by the State’s four Road Transport Corporations (RTCs). The move has come as a shock to people, who were just beginning the new year, 2025. The Congress government, headed by Chief Minister Siddaramaiah, made the decision to increase fares aiming to generate an additional ₹74.85 crore in monthly revenue for the RTCs to make up for escalating operating costs.
However, opposition parties BJP and JD(S) have criticised the move, arguing that the fare hike is a result of losses incurred by the RTCs owing to Karnataka’s Shakti scheme, which offers free bus travel for women on State-run buses.
Why was the fare hike implemented now?
The decision to raise fares follows sustained demands from the RTCs, which have been grappling with rising operational costs. The primary factors driving this increase include escalating diesel prices, higher staffing costs, and increased maintenance expenses, according to Law and Parliamentary Affairs Minister H.K. Patil, who explained the reasons after a Cabinet meeting.
Patil stated that diesel, a key cost component, has seen a significant price surge over the years. For instance, in 2015, the cost per litre was ₹60.98. Daily diesel expenses for RTCs have increased from ₹9.16 crore to ₹13.21 crore. Similarly, daily expenses for staff salaries have risen from ₹12.85 crore to ₹18.36 crore, reflecting growing wage commitments. The upkeep of the fleet, which includes repairs and servicing, has also become more expensive over the years.
The primary factors driving the increase in fare hike include escalating diesel prices, higher staffing costs, and increased maintenance expenses, according to Law and Parliamentary Affairs Minister H.K. Patil. File photo.
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MURALI KUMAR K
Despite these mounting costs, RTCs had not revised fares for many years. The Bengaluru Metropolitan Transport Corporation (BMTC) last increased fares a decade ago in 2014, while the other three corporations — Karnataka State Road Transport Corporation (KSRTC), North Western Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC) — implemented their last hike five years ago.
What is the impact on commuters?
The fare hike has triggered widespread dissatisfaction among commuters, particularly those who rely on public transport daily. Many see it as an additional financial burden amid rising costs of essential commodities.
Manoj Kumar, a daily BMTC bus user, shared his concerns and said, “For commuters like me, this increase means allocating a substantial portion of our income to travel. With rising costs everywhere, this is an added strain. The airport bus I take daily was already expensive; now it’s even worse.”
While the fare increase has impacted all passengers, male commuters have faced additional challenges with cash transactions. Many expressed frustration over the difficulty of providing exact change to conductors after the fare revision. Since women benefit from the Shakti scheme, conductors mainly rely on male passengers for cash payments.
“I usually carry exact change for my daily commute from Majestic to Nandini Layout, which used to cost ₹25. Now, I have to pay ₹28, an extra ₹3,” said Ramakrishna R., a resident of Nandini Layout. “If I pay ₹30, conductors often don’t have ₹2 change. With the revised fares, it is very difficult, and I’m constantly searching for small denominations.”
Daily ridership on State-run buses has surged significantly since the introduction of the Shakti scheme, which allows women to travel free of charge. According to Transport Department data, daily ridership increased from 93.46 lakh to 116.63 lakh passengers, adding 23.17 lakh daily commuters. While this highlights the scheme’s popularity, it has also placed additional pressure on the existing transport infrastructure.
What is Shakti scheme’s impact on RTC finances?
Between June 2023 and March 2024, the four corporations spent a total of ₹4,380.36 crore on the implementation of Shakti scheme. The government has been releasing ₹417 crore monthly to RTCs as reimbursement for the scheme, and the 2024-25 Budget allocated ₹5,015 crore for its continuation.
According to Transport Department data, daily ridership increased from 93.46 lakh to 116.63 lakh passengers, adding 23.17 lakh daily commuters, since the introduction of the Shakti scheme by the Siddaramaiah-led Congress government. File Photo
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MURALI KUMAR K
Transport Minister Ramalinga Reddy defended the fare hike, attributing it to inherited liabilities from the previous BJP government, including a debt of ₹5,900 crore. He explained that during the COVID-19 pandemic, bus operations were halted, exacerbating financial difficulties. Although grants were provided for net salaries, gaps between gross and net salaries created an accumulated burden.
Additionally, the government has decided to guarantee RTCs a ₹2,000-crore loan to clear provident fund and diesel purchase dues. The government will bear both the principal and interest on this loan.
Are Karnataka’s fares still competitive?
Despite the hike, Mr. Reddy claimed that Karnataka’s bus fares remain lower than those in other neighboring states. “We decided to increase the fares by 15%. If you compare, the fares on buses run by RTCs in Karnataka are lower than those in Maharashtra, Telangana, and Andhra Pradesh,” he said.
Meanwhile, the revision of fares for premium AC buses, however, will be determined independently by the corporations, with a cap of 15%. GST is applied exclusively to AC buses.
BJP workers wearing masks of Chief Minister Siddaramiah and Deputy Chief Minister D K Shivakumar, distribute roses and “apologise” to KSRTC bus passengers, during an agitation against the Karnataka government’s decision to increase bus fares by 15%, at the Kempegowda Bus Stand in Bengaluru on January 3, 2025.
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MURALI KUMAR K
How is the government addressing rising demand for buses?
To address growing public transport needs, the Transport Department has inducted 4,304 new buses for 2023-24 and 2024-25. Mr. Reddy said of these, BMTC received the largest share with 1,510 buses, followed by KSRTC (1,118), KKRTC (1,014), and NWKRTC (662).
Plans are also underway to introduce an additional 1,346 buses across the four corporations, according to Mr. Reddy.
What has been the political reaction?
The fare hike has drawn sharp criticism from opposition parties. BJP State President B.Y. Vijayendra accused the Congress government of burdening the public under the pretext of its guarantee schemes. He likened the Shakti initiative to a “Buy-One-Get-One-Free” gimmick.
Leader of the Opposition R. Ashok posted on X (formerly Twitter), questioning, “How many more taxes and fees must Kannadigas pay to satisfy your government’s insatiable greed?” On January 3, Ashok staged a protest at Bengaluru’s Kempegowda Bus Station by offering roses to male passengers and apologising “on behalf of Chief Minister Siddaramaiah.” He criticised the government for “making bus travel free for women while doubling fares for men.” Similar protests against the bus fare hike were organised by Opposition parties across Karnataka.
R Ashok, Leader of the Opposition in the Legislative Assembly, distribute roses to KSRTC bus passengers, during an agitation against the 15% bus fare hike, at the Kempegowda Bus Stand in Bengaluru on January 3, 2025.
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MURALI KUMAR K
However, Mr. Reddy countered these criticisms by highlighting fare hikes during previous BJP administrations. “Most recent hikes occurred under BJP rule,” he noted, citing a 12% increase in 2020 under then Chief Minister B.S. Yediyurappa and a cumulative 47.8% hike implemented by Mr. Ashok during his tenure as Transport Minister between 2008 and 2012.
What do experts and bus user groups say?
The Bengaluru Bus Prayanikara Vedike (BBPV) has called for the immediate withdrawal of the Karnataka government’s bus fare hike, terming it “unfair and unjust.” BBPV member Vinay Sreenivasa condemned the decision, arguing that it disproportionately affects the working class, who depend on buses for their daily commute.
“This fare hike discourages the use of public transport at a time when we need more buses and free public transport to address Bengaluru’s traffic issues. Penalising public transport users is a step in the wrong direction,” he said.
The Bengaluru Bus Prayanikara Vedike (BBPV) has condemned the bus fare hike, arguing that it disproportionately affects the working class, who depend on buses for their daily commute.
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MURALI KUMAR K
In a press release, the BBPV suggested alternative revenue-generating measures, such as introducing parking and congestion fees for private vehicle owners, especially during peak hours, and implementing a traffic cess for private companies based on their employees’ use of private transport.
The BBPV also urged the government to redirect funds allocated for large infrastructure projects, like tunnel roads and flyovers, to enhance Bengaluru’s bus system. “These projects have not been effective in alleviating traffic congestion. Instead, priority should be given to creating bus lanes and expanding bus services,” the BBPV stated, also proposing the introduction of a congestion tax to make car travel more expensive.
Published – January 06, 2025 05:16 pm IST
