Karnataka Congress MLA Flags Rs 900 Crore Fund Crunch In Free Bus Travel Scheme

Congress MLA and North Western Karnataka Road Transport Corporation (NWKRTC) chairman Raju Kage has raised concerns over delayed government funds, highlighting a shortfall of 900 crores under the Shakti scheme for free travel for women.

According to Kage, the corporation is struggling to break even and urged the government to release the pending funds.

"We are not making profits. We are struggling and trying to reach a stage where we can be profitable. We have to get about 900 crore from the government for the Shakti scheme. If we receive this money, we will break even. We haven't received this payment since the scheme was implemented about two years ago. The government pays about 70 per cent and holds 30 per cent of the payments. Once this is cleared, we will be in a no-loss, no-profit situation. We have already brought this to the notice of the Chief Minister and the Transport Minister, and we hope to resolve this soon," he said.

Transport Minister Ramalinga Reddy responded to the concerns, saying, "When the road transport corporations were in trouble, Chief Minister Siddaramaiah sanctioned 2,000 crore for the corporations. Over 500 crore of that has already been allocated to NWKRTC. In addition, we are providing 700 new buses to the corporation, costing about 350 crore. So, in total, the corporation is receiving 850 crore - 500 crore as a loan that the government will repay, and 350 crore through new buses. This needs to be understood in context."

Karnataka's road transport corporations, including KSRTC, BMTC, NWKRTC, and KKRTC, are facing significant financial challenges. As of November 2024, their consolidated liabilities amounted to approximately 6,330 crore, with immediate liabilities of 3,000 crore. KSRTC recently sought a 623 crore loan to clear statutory dues, such as provident fund and fuel expenses. Across all corporations, outstanding arrears are estimated at around 4,800 crore.

Covid-19 disruptions, delays in fare hikes, and the Shakti scheme providing free bus rides to women are some of the primary reasons behind the financial strain.