BENGALURU: First milk, now your bus ride. With the State government expected to take a final decision on bus fare revision next week, the Public Transport Fare Regulatory Committee (PTFRC) has recommended a 45 per cent hike for Bengaluru Metropolitan Transport Corporation (BMTC) and a 28 per cent increase for three other state-run transport corporations.
Speaking after the Cabinet meeting on Thursday, Transport Minister Byrathi Suresh said a meeting with senior officials of all four transport corporations would be held on November 3, following which a final decision would be announced on November 4.
Suresh said the fare revision proposal was discussed in detail. The Chief Minister had sought the views of Cabinet colleagues before entrusting the department with the responsibility of taking a decision on fare revision, the minister said. TNIE accessed the recommendations of the panel, which reveal that the committee’s proposals are based on a Modified Annual Revenue Requirement (ARR) framework that assesses operational costs, non-fare revenue and assured government support to determine the amount to be recovered through passenger fares.
The panel said the four corporations were facing a structural gap between the cost of providing services and passenger revenue due to rising fuel, staff, maintenance and other operational expenses, along with prolonged gaps between fare revisions. It observed that efficiency improvements alone would not be sufficient to bridge the deficit.
The committee has recommended a 45 per cent fare adjustment for BMTC, considering its urban operating conditions, and a harmonised 28 per cent increase for KSRTC, NWKRTC and KKRTC across regional, intercity and rural services.
It also recommended that any shortfall arising from the government’s decision to keep fares below the assessed level be recognised as a ‘Policy Fare Gap’ and fully funded through committed state budgetary support. The panel has proposed an annual review of operational costs and revenues, with adjustments based on actual financial outcomes.
The committee also recommended transparent, stage-wise and service-wise fare schedules, with the three regional corporations adopting a common structure for comparable services, while BMTC retains a separate urban fare structure.