The Karnataka State Road Transport Corporation (KSRTC) is facing a severe financial crisis, seeking a ₹624 crore loan to clear statutory arrears, including provident fund and fuel payments. The crisis has intensified two years after the introduction of the free bus ride scheme for women, the Shakti Yojana.
As of December 2024, the four state-run transport corporations in Karnataka have amassed a total debt of ₹6,244.29 crore, with cumulative losses of ₹5,209.35 crore. KSRTC alone has reported losses of ₹1,815.83 crore, while the Bengaluru Metropolitan Transport Corporation (BMTC) has incurred ₹2,056.30 crore in losses.
Launched in June 2023, the Shakti Yojana provides free bus rides to women on non-luxury buses. While the scheme aims to empower women, it has caused a significant financial burden on the transport corporations. The program is losing an estimated ₹120 crore per month due to waived ticket fares, with the government reimbursing only ₹102 crore. An outstanding amount of ₹414 crore remains unpaid.
In response to the mounting financial pressure, the Karnataka government has approved a ₹2,000 crore loan to settle various liabilities, including unpaid provident funds, fuel bills, and dues to retired employees. Additionally, the government has extended its guarantee for this loan.
The KSRTC’s financial struggles highlight the need for a sustainable model that balances social welfare programs like the Shakti Yojana with the operational sustainability of public transport services. Stakeholders are urging a comprehensive review of the scheme’s implementation and its long-term impact on the state’s transport infrastructure.
