Free bus travel: Karnataka’s 4 transport corporations run into deep trouble
The state has moved to stabilise the corporations. A Rs 2,000 crore loan — government-guaranteed and government-repaid — has been approved to clear provident fund and fuel dues
Karnataka’s four state transport corporations are in deep financial trouble — and the government's flagship 'Shakti' scheme, which offers free bus travel to women, is a big part of the story.
Since its launch on June 11, 2023, the Shakti Yojana has clocked 680.87 crore women passengers. The total cost of free travel has reached Rs 1,76,474.99 crore, of which the government has released Rs 1,30,737.49 crore — leaving over Rs 45,737 crore still unpaid to the corporations.
Rs 2,000 crore loan
KSRTC (Karnataka State Road Transport Corporation), BMTC (Bengaluru Metropolitan Transport Corporation), NWKRTC (North Western Karnataka Road Transport Corporation) and KKRTC (Kalyana Karnataka Road Transport Corporation) together carry an outstanding debt of Rs 4,099.38 crore as of May 2023. The Shakti scheme has compounded existing pressures — rising diesel prices, staff salary revisions and costlier spare parts have all added to the burden.
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The interest payments alone tell a grim story. KSRTC paid Rs 1.97 crore in monthly interest in 2024-25. BMTC, the worst off, paid Rs 2.24 crore monthly the same year, down from a peak of Rs 5.69 crore in 2021-22.
The state has moved to stabilise the corporations. A Rs 2,000 crore loan — government-guaranteed and government-repaid — has been approved to clear provident fund and fuel dues. Motor vehicle tax worth Rs 1,219.23 crore for 2023-25 has been waived, and Rs 224.05 crore released for gratuity and leave encashment of retired staff.
As many as 2,000 new diesel and electric buses are to be added by the end of 2025-26 under Central government schemes. Employees, who hadn't seen a salary revision in years, have also been promised relief — an order issued on February 18, 2026, clears Rs 1,271.92 crore in arrears for 26 months from 2021 to 2023, with fresh wage talks with trade unions to follow.
(This article was originally published in The Federal Karnataka)