Karnataka's four state-run transport corporations, including the Karnataka State Road Transport Corporation (KSRTC) and Bengaluru Metropolitan Transport Corporation (BMTC), have formally sought a fresh bus fare hike of 10% to 12%, citing severe financial distress and mounting liabilities estimated at nearly Rs 6,000 crore.
The proposal comes just months after a 15% fare revision implemented in early 2025. Transport officials say rising operational expenses, higher fuel costs, and increased employee wages have significantly strained the corporations' finances. Diesel prices have risen by Rs 7–8 per litre, while a recent 12.5% salary hike for more than one lakh employees has added an annual financial burden of Rs 873.64 crore, as per the India Today.
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Officials have also pointed to the impact of the state government's Shakti Scheme, which provides free bus travel for women. While the scheme has boosted ridership, it has reduced the share of fare-paying passengers, with the proportion of paying male commuters declining from 48% to 36%. The corporations argue that this shift has affected revenue generation and increased dependence on government reimbursements.
Compounding the crisis are delays in the release of subsidy payments under the Shakti Scheme. Pending reimbursements have crossed Rs 821 crore, restricting daily cash flow and making it difficult for the transport utilities to meet operational expenses and salary obligations.
The fare hike proposal is currently under consideration by the Karnataka government. Chief Minister DK Shivakumar stated that the government recognises the need to ensure the financial sustainability of public transport services while balancing public welfare concerns.
The state government is expected to assess the corporations' financial health and the broader public impact before taking a final call on the proposed fare revision.
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