BENGALURU: From January 5, fares of state-owned KSRTC, BMTC, NERTC and NWRTC buses will be increased by 15%. The state cabinet on Thursday approved a proposal to revise fares of ordinary and air-conditioned buses run by the four RTCs.
Law and Parliamentary Affairs Minister HK Patil told reporters that the cabinet has given administrative approval for revision of bus fares.
Patil said the RTCs spent Rs 13.21 crore a day on fuel. Ten years ago, diesel price was Rs 60.98 per litre and the RTCs spent Rs 9.16 crore a day on it. The expenditure on employees, which was Rs 12.85 crore, has increased to Rs 18.36 crore. The financial burden on the RTCs has increased and hence, fares have been revised.
The proposal was for a fare hike by 13 to 15%. “We decided to hike it by 15%. Fares in buses run by RTCs in Karnataka are lesser than those in Maharashtra, Telangana and Andhra Pradesh,” he said.
He, however, said that the state government will not stop its ambitious Shakti free ride guarantee for women. With the fare revision, the RTCs are expected to generate an additional revenue of Rs 74.85 crore a month.
“We have earmarked Rs 5015 crore for Shakti scheme in our budget, and Rs 417 crore is released to the four RTCs every month. This has not affected the state’s finances. Karnataka is one of the best states in managing finances,” he said.
Patil said the cabinet also approved a proposal to obtain loans amounting to Rs 2,000 crore by the RTCs towards payment of provident fund dues and the expenditure on fuel till November 2024. Asked if the RTCs will get loans from financial institutions, he said they will get based on their income-generating capacity.