Government to consider bus fare hike proposal?

Team Udayavani, Jun 18, 2024, 9:28 AM IST

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Bengaluru: Following the recent hike in sales tax on petrol and diesel, all four major transport corporations have proposed an increase in bus fares.

This move is expected to impact bus passengers, adding to their financial burden. A proposal for a 25% fare increase has been submitted to the government, with an estimated actual increase of 12% if approved.

The four corporations, including KSRTC and BMTC, have assessed their current financial conditions and daily averages, projecting an income boost of Rs 5-6 crore daily from the proposed fare hike. However, half of this burden is anticipated to fall on the government.

A significant portion of bus passengers, 58%, are women whose travel expenses are currently covered by the government under the “Shakti” scheme. If the proposed 25% fare hike is implemented, it would generate an additional Rs 5-6 crore daily. Consequently, the government would need to subsidize half of this amount under the Shakti Yojana.

Even a moderate approval of a 10-12% fare hike could result in a daily income increase of Rs 2.5-3 crore for the transport corporations, amounting to an annual increase of Rs 1,100-1,200 crore. Out of this, the fare coverage for female passengers would account for Rs 550-600 crore annually. Including the anticipated rise in oil prices, the total projected income is expected to reach Rs 3,000 crore, with 20% allocated to corporations under the Shakti scheme.

A senior official from KSRTC mentioned that the final decision on the fare revision is pending and will be discussed with the concerned department. Chief Minister Siddaramaiah confirmed that there has been no bus fare revision yet, but it remains under consideration.