The Karnataka State Road Transport Corporation (KSRTC) has urged the government to provide additional financial assistance to compensate for the revenue loss caused by the implementation of the free travel scheme. The state government recently announced free travel for women under the Shakti scheme, which has resulted in a significant increase in the loss of income for KSRTC.
KSRTC, along with its subsidiaries BMTC and Kalyan Karnataka RTC, had been providing commendable services with minimal losses until the COVID-19 crisis struck. However, the financial burden escalated when the government introduced the free travel initiative just as the transport corporations were recovering from the pandemic’s impact. Seeking assistance from the government, KSRTC has highlighted the need for financial support to cover employee salaries and fuel expenses.
In a letter addressed to Transport Secretary V.S. Pushpa, KSRTC estimates that the revenue loss incurred due to the implementation of the free travel scheme amounts to approximately Rs 4,000 crore annually. The corporation is now urging the government to intervene and provide necessary assistance to mitigate the financial strain.
Within just three days of the Shakti scheme’s launch, Karnataka RTC spent Rs 21 crore, with expenses reaching Rs 10.82 crore on Tuesday alone. According to media reports, the scheme is expected to put an additional burden of approximately Rs 4,000 crore per year on the government. KSRTC’s ridership stands at 38.27 lakh, including 13.97 lakh passengers availing the benefits of the Shakti scheme. NWKRTC witnessed 11.08 lakh passengers, while KKRTC recorded 5.89 lakh passengers under the scheme.
The government’s implementation of the free travel scheme is seen as the fulfillment of one of the five major promises made by the Congress party prior to the elections. The Shakti scheme allows women, including girls and transgender individuals, to travel for free in all non-AC government buses across the state. However, in the remaining state road transport corporations (KSRTC, NWKRTC, and KKRTC) excluding the Bengaluru Metropolitan Transport Corporation (BMTC), 50 percent of seats will still be reserved for men.
Under the scheme, women can avail of this free travel service in the existing fleet of 18,609 buses owned by the four state-run road transport corporations, including city transport, ordinary, and express buses. Buses participating in the scheme will be visibly marked with ‘Free Travel for Women’ posters to ensure clarity. Women can travel up to 20 km within the state on these buses without incurring any charges.
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