The financial health of Karnataka's four state-run road transport corporations (RTCs) is under severe strain due to significant delays in the reimbursement of funds for the Congress government's flagship Shakti scheme. The state government currently owes a staggering Rs 4,000 crore to these corporations for providing free bus travel to women across the state.
The Popular Scheme and Its Mounting Dues
Launched with much fanfare on June 11, 2023, the Shakti scheme was the first of the five guarantee schemes implemented by the Siddaramaiah-led government. It allows women to travel for free in ordinary buses operated by the Karnataka State Road Transport Corporation (KSRTC), North Western Karnataka Road Transport Corporation (NWKRTC), Kalyana Karnataka Road Transport Corporation (KKRTC), and the Bengaluru Metropolitan Transport Corporation (BMTC).
The scheme has seen massive adoption, with over 1 crore women availing the facility daily across more than 20,000 buses. Since its inception, the state has spent a total of Rs 11,748 crore on the initiative, with nearly 650 crore free tickets issued.
Breaking Down the Payments and Pending Debt
While reimbursements have been made, a huge backlog remains. The KSRTC has received the highest reimbursement of Rs 4,483.6 crore, followed by NWKRTC (Rs 2,887 crore), KKRTC (Rs 2,357.7 crore), and BMTC (Rs 2,020.3 crore).
However, the pending dues of Rs 4,006 crore are crippling the RTCs. This includes Rs 1,180 crore for the 2023-24 financial year, Rs 1,170 crore for 2024-25, and Rs 1,655 crore for the current 2025-26 fiscal year (up to November). The pending amount is split as:
- KSRTC: Rs 1,580.1 crore
- BMTC: Rs 710.8 crore
- NWKRTC: Rs 988.1 crore
- KKRTC: Rs 727.4 crore
Consequences of the Financial Strain
The delay in reimbursement is exacerbating the already precarious financial position of the transport corporations. Between 2020-21 and 2024-25, these entities suffered cumulative losses of Rs 7,469.5 crore, a period that included the COVID-19 pandemic's impact. BMTC recorded the highest loss at Rs 2,585 crore, followed by KSRTC at Rs 1,979 crore.
This cash crunch threatens their day-to-day operations and long-term viability. The non-payment of dues is likely to affect:
- Clearing pending bills to contractors and suppliers.
- Making timely payments to oil companies for fuel.
- Meeting statutory obligations like provident fund and gratuity for employees.
- Investing in crucial fleet expansion and modernization.
Government Response and Support Measures
Responding to concerns, Transport Minister Ramalinga Reddy stated that the government has been supporting the RTCs through various measures. He highlighted a Rs 2,000 crore loan assistance where the government is bearing both the principal and interest. Furthermore, funding has been provided for the induction of 2,000 new buses.
Additional support includes Rs 224 crore allocated for clearing pending payments to retired employees and exemptions from motor vehicle tax amounting to Rs 1,219.2 crore. Despite these steps, the core issue of the massive pending reimbursement for the Shakti scheme continues to loom large, putting the popular welfare program and the state's public transport infrastructure at a critical juncture.
