CHENNAI: The Tamil Nadu government, after seven years, is expected to approve a bus fare hike for private operators soon based on a Madras High Court direction.
However, in a first, the state, which operates nearly 80% of buses in TN, is unlikely to revise fares for its own fleet with Assembly polls just eight months away, due to fears of a public backlash and the potential electoral fallout.
The fare revision also includes plans to introduce an automatic fare adjustment mechanism, tied to operational variables such as fuel prices, employee wages, the wholesale price index, and other economic indicators.
According to official sources, the expert committee headed by the Transport Commissioner, which was formed in response to the court directive, received over 2,500 suggestions from the public between January and June this year.
“We held separate consultations with both private operators and officials from the eight state transport undertakings. Public feedback has been mixed, with some supporting and others opposing a fare hike,” a senior official said.
‘Pvt bus ticket sales fell from 2018 to ‘25’
The technical committee is expected to hold its final meeting soon and will then submit its report to the empowered committee headed by the Home Secretary. “Based on this report, recommendations will be sent to the government for final approval,” a top official added.
With the 2026 elections looming, the government is unlikely to approve fare hikes for its own fleet. Beyond political concerns, such a move would also escalate the financial burden on the state exchequer, which has allocated Rs 5,420 crore in subsidies for 2025-26.
This includes Rs 3,600 crore for the Vidiyal Payanam scheme, Rs 1,782 crore for student passes, and Rs 38 crore in concessions for senior citizens.“The fare reimbursement model for these schemes is directly linked to ticket prices. Any fare hike would significantly raise the government’s compensation bill,” explained another official. While this would benefit the transport corporations, it would put further pressure on the state’s finances.
Currently, the state-run transport corporations operate more than 21,000 buses, while private operators run around 4,600 buses and 2,400 spare vehicles. The private buses are permitted to operate throughout TN, except within the city limits of Chennai, Madurai, Nagercoil, and the Nilgiris.
“We are ready to accept a fare hike for private buses alone, if that is what the government decides,” said DR Dharmaraj, secretary, Federation of Bus Operators Association of Tamil Nadu. The last fare revision was in January 2018 when diesel prices were Rs 63 per litre at the time. Presently, diesel costs Rs 93 per litre. “Unlike government-run corporations, we receive no subsidy on fuel or operational support,” Dharmaraj pointed out.
He also noted a decline in ticket sales from 1,300 to 900 per day for town buses, and from 2,000 to 1,400 per day for mofussil buses between 2018 and 2025. “This drop is largely due to a shift towards two-wheelers and the rollout of the free bus travel scheme for women,” he added.
According to official data, the state’s transport corporations are running at a loss of Rs 566 crore per month in 2024-25, with average daily losses pegged at Rs 18.8 crore.