NITIN SESHADRI

Let me put the issue in perspective @dp_satish 1. Karnataka’s Road Transport Corporations (RTCs), though among the best in the country, have been facing commercial challenges long before the launch of Shakti scheme. Therefore, blaming free travel for women under Shakti for the problems of RTCs is not borne out by facts. 2. In fact, Shakti has resulted in much needed assured cash flow of about Rs 5600 crores per year to the four RTCs. In turn, the RTCs are experiencing better capacity utilisation for the same operational cost, thus the cost per kiolmeter (CPKM) actually reduces. 3. The problems of RTCs have longer history. More than 3/4th of the total cost of RTCs consists of 2 items: fuel & staff. (79.8 % of KSRTC cost, 73.8 % of BMTC cost, 83.3 % of NWKRTC cost and 80.6 % of KKRTC cost is fuel & staff). The cost of these two items has been rising and the fares have not risen over the years. Between 2014 and 2025 the BMTC fares were not increased. Between 2020 and 2025 the fares of KSRTC and other RTCs were not increased. 4. Whereas the diesel prices have increased by about 64% between 2014 & 2026 and 53% between 2020 & 2026. Similarly, staff salaries have risen over the years. When 75% of your cost is fuel and staff and those rise every year, how are the RTCs supposed to make ends meet without fare revision or govt subsidy? You either revise the fares or the state subsidises the RTCs by giving grants. The later method is not sustainable, given the other social policy commitments of the Government. The third alternative is for the RTCs to increase their non-fare revenues. This has been recommended by the M R Sreenivasa Murthy committee a long ago, but not much progress has been achieved. 5. The Government must invest more in public transport as it carries enormous positive externalities. Though over the years investment in RTCs like buying more new buses has come down, since 2023 the Government has introduced / committed to introduce 6034 new buses. In addition, the Government of Karnataka has agreed to deploy 4500 e-buses on GCC under PM-e Drive for BMTC. 6. Of course, the RTCs have been asking for higher reimbursement under Shakti. Government has also been short releasing under student free bus pass schemes. These issues need to be settled in favour of RTCs. 7. To conclude, Shakti is not the problem but a solution. However, this scheme needs to be combined with reasonable reimbursement of the costs and more investment in new buses. With the introduction of smart card the issue of short reimbursement, if any, can be settled. 8. Karnataka’s RTCs are among the few public transport companies in the country that do well. We need to make them perform even better. Happy Deepavali to all!!