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Home / State News / Karnataka Government hikes bus fares by 15%; new rates effective from January 5

Karnataka Government hikes bus fares by 15%; new rates effective from January 5

Sat, 04 Jan 2025 10:55:56  IG Bhatkali   PTI
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Bengaluru: In a significant decision, the Karnataka government has approved a 15% hike in fares for state-run buses, effective January 5, citing rising operational costs and financial challenges faced by transport corporations.

The hike applies to all four state-run corporations: Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North West Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC). Law and Parliamentary Affairs Minister H.K. Patil announced the decision after the cabinet meeting held on Thursday.

According to Patil, diesel expenses have surged from ₹9.16 crore per day in 2015 to ₹13.21 crore per day now, while labor costs increased from ₹12.85 crore to ₹18.36 crore per day, adding an additional operational burden of ₹9.56 crore daily.

The fare hike is expected to generate ₹74.85 crore in additional revenue per month for the corporations. However, the government clarified that the Shakti scheme, which provides free travel for women, will continue as planned.

The move comes as the government faces mounting dues amounting to ₹8,010 crore, including ₹2,000 crore for the Shakti scheme, ₹1,785 crore in salary arrears, and ₹2,900 crore in provident fund dues. To address some of these liabilities, the state will offer loan guarantees for ₹2,000 crore.

While the fares for KSRTC, NWKRTC, and KKRTC were last revised in 2020, BMTC fares had not been revised since 2014.


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