The Karnataka State Road Transport Corporation (KSRTC) has announced that it plans on increasing the bus fare by up to 20%, owing to financial losses. The KSRTC reportedly passed a resolution on Friday, July 12, proposing a fare hike.

KSRTC Chairman and Gubbi MLA SR Srinivasa while speaking to reporters on July 14, said that the corporation has proposed a 15-20 percent ticket fare hike to the government. "The increase in ticket prices is inevitable," Srinivasa said, citing significant financial losses as the reason for the hike. “We held a meeting two days ago and decided to send a proposal for a 15-20 percent hike in the bus fare. The hike is needed for the survival of KSRTC, which is incurring huge losses after implementing the Shakti scheme.”

North Western Karnataka Road Transport Corporation (NWKRTC) Chairman Raju Kage also attributed the losses to the Shakti scheme.

However, it is also worth noting that KSRTC had also suffered a loss of around Rs 134 crore in 2018-19 period, way before the Shakti scheme was implemented in 2023. In 2020, the COVID-19 induced lockdown also pushed the transport body into a financial crunch, suffering a loss of around Rs 816 crore. 

Srinivasa said that the KSRTC has incurred a loss of Rs 295 crore in the last three months. “The prices for fuel and other automobile parts have substantially gone up. The salaries of KSRTC employees have not been revised since 2020. The corporation has faced Rs 295 crore loss in the last three months,” Srinivasa added. 

The Shakti scheme is one of the five poll promises made by the Congress before the Karnataka Assembly elections. The scheme allows for free travel for women in ordinary buses. The Congress party also extended the scheme to Telangana after winning the mandate in the 2024 Telangana Assembly elections.