Transport Minister Ramalinga Reddy (left) travels by bus during the launch of electric buses for BMTC in July 2023. (PTI File)
Karnataka Transport Minister Ramalinga Reddy: “I have no proposal in front of me yet, and nothing has been approved…Why blame Shakti when we have added 20 lakh travellers?…The losses are due to hike in prices of petrol and diesel. The salaries of our employees have gone up…”
The Shakti scheme has not led to losses, rather, it has brought in 20 lakh more travellers on-board Karnataka State Road Transport Corporation (KSRTC) annually and generated significant goodwill, Karnataka Transport Minister Ramalinga Reddy told News18, as he tried to quell the row over the planned 15-20 per cent rise in bus ticket prices.
“I have no proposal in front of me yet, and nothing has been approved,” Reddy told News18.
The Shakti scheme, one of the five guarantees rolled out by the Siddaramaiah-led Congress government, offers free travel to women on government buses in Karnataka. According to Reddy, the losses incurred by the KSRTC are due to hiked fuel prices. “Why blame Shakti when we have added 20 lakh travellers? It is a scheme that has benefitted so many people. The losses we are incurring are due to hike in prices of petrol and diesel. The salaries of our employees have gone up. Let the numbers speak. Karnataka pays the Central government Rs 4.5 lakh crore in taxes…Our tax payment is more than the financial budget of the state, but is the Centre giving us any relief,” asked Reddy.
TRAFFIC REVENUE TO FUEL PRICES, STAFF SALARIES: THE MINISTER EXPLAINS
According to the data shared by the minister, the traffic revenue before the Congress came to power and introduced the Shakti scheme (June 2022-May 2023) was Rs 3,401.54 crore, while the revenue generation after the introduction of the women-oriented scheme has been pegged at Rs 4,594.23 crore (June 2023 to May 2024).
“We are yet to receive Rs 1,000 crore in reimbursements and the Rs 700-crore exemption that we have got under the Motor Vehicles Act. All this will help the department function better. People shouldn’t give a knee-jerk reaction,” said Reddy.
A proposal has been sent to the Karnataka government to hike the bus fares by 15-20 per cent, as the department has been weighed down by financial losses. These losses, Reddy says, are because of the rising fuel prices, hike in rate of spare parts and salaries of employees, without changing the fares for nearly a decade.
“Take the example of Bengaluru Metropolitan Transport Corporation (BMTC). For the past 10 years, the price of a ticket has been the same. The same with North West Karnataka Road Transport Corporation (NWKRTC) and Kalyana Karnataka Road Transport Corporation (KKRTC). Fares have not been hiked in 5 years. Inflation and other factors are to be taken into consideration,” he added.
KSRTC CHAIRMAN, MD NOT ON SAME PAGE
The Shakti scheme has reported an operating loss of Rs 295 crore in the past three months, said KSRTC Chairman SR Srinivas, justifying the steep rise in ticket fares.
“The rise in ticket prices is inevitable. We held a meeting two days ago and decided to send a proposal for a 15-20 per cent hike in bus fares. The hike is needed for survival of the KSRTC, which is incurring huge losses after implementing the Shakti scheme,” the chairman told PTI.
However, senior officials in the department differ. According to KSRTC Managing Director Anbu Kumar, the total traffic revenue of KSRTC was Rs 2,738 crore in 2016, Rs 2,975 crore in 2017, Rs 3,131 crore in 2018, Rs 3,182 crore in 2019, Rs 1,569 crore in 2020 (fall due to the pandemic), Rs 2,037 crore in 2021, and Rs 3,349 crore in 2022.
Reddy said that the KSRTC has seen its traffic revenue for 2023-24 jump by Rs 1,193 crore.
The Bharatiya Janata Party (BJP) has targeted the Congress for these recurring losses, calling it a burden on people for the sake of electoral promises.
