Karnataka govt’s ‘Shakti Scheme’a success, but RTCs await Rs 5,650 crore in dues

The minister, in his written response, stated that the Transport Department had requested the Finance Department to clear the outstanding dues.

Transport Minister Byrathi Suresh, in his written response in the recent monsoon session of the legislature, said the Transport Department has requested Finance Department to clear the outstanding dues Photo | Express

BENGALURU: Karnataka’s four state-run road transport corporations (RTCs) are collectively awaiting Rs 5,650.95 crore in dues under the Shakti scheme, which has recorded nearly 800 crore free journeys since its launch in June 2023, while the Finance Department has said there is no scope for additional funds to clear the pending dues.

According to a reply by Transport Minister Byrathi Suresh in the recently concluded Karnataka Legislative Council, the four corporations have incurred an expenditure of Rs 20,955.96 crore under the scheme between its launch on June 11, 2023, and July 31, 2026. Against this, the government has released Rs 15,305.01 crore, leaving a balance of Rs 5,650.95 crore.

The minister, in his written response, stated that the Transport Department had requested the Finance Department to clear the outstanding dues. However, the Finance Department stated that there was no scope for providing additional funds to clear the pending amount, as the government had already extended grants to the four transport corporations and made budgetary provisions for the Shakti scheme.

The response further said that funding under the Shakti Scheme is determined based on the schedules operated by the transport corporations.

It added that, the corporations have received financial support for student bus passes, repayment of loans and interest, construction of buildings, purchase of buses, Viability Gap Funding (VGF), motor vehicle tax exemptions, and pending payments towards salaries, diesel, provident fund and leave encashment.

According to the reply, a total of Rs 18,459.37 crore in financial assistance has been provided to the four corporations over the last three years under various heads.

Meanwhile, ridership under the scheme has continued to rise. From June 2023 to July 2026, the four RTCs issued 797.16 crore free travel tickets. The scheme recorded 183.06 crore journeys in 2023-24, rising to 244.65 crore in 2024-25 and 275.70 crore in 2025-26. In the first four months of 2026-27, up to July, another 93.75 crore free journeys were recorded.