Fare Game: Karnataka Hits the Brakes on Sudden Hikes, Sets Biennial Rhythm

Image Source: The Economic Times

In a move that could reshape how public transport fares are determined across Karnataka, the state government has announced a landmark decision to revise bus fares every two years. This structured approach aims to balance affordability for commuters with financial sustainability for the state's road transport corporations. To oversee this process, a new Public Transport Fare Regulatory Committee (PTFRC) will be constituted, echoing the model of the Karnataka Electricity Regulatory Commission.

Key developments at a glance:

1. Biennial fare revisions formalised
- Bus fares across Karnataka will now be revised every two years
- The decision is intended to prevent steep, sudden hikes and ensure predictable adjustments
- Transport Minister Ramalinga Reddy emphasized that small, periodic increases will be less burdensome for the public and help maintain operational viability

2. Formation of the Public Transport Fare Regulatory Committee (PTFRC)
- A three-member independent panel will be set up to recommend fare revisions, surcharges, and fees
- The committee will be chaired by a retired High Court judge or an additional Chief Secretary
- Other members will include a retired principal secretary with legal expertise and a financial or industry expert
- The Managing Director of the Karnataka State Road Transport Corporation (KSRTC) will serve as the member-secretary

3. Mandate and functioning of the committee
- The committee will study the financial health of the four state-run Road Transport Corporations: KSRTC, BMTC, NWKRTC, and KKRTC
- It will meet at least once every three months and submit an annual report between April 1 and December 31
- The committee will factor in operational costs such as diesel prices, spare parts, maintenance, bus procurement, and staff salaries
- Recommendations will be submitted to the government and RTCs, and subsequently tabled in the legislature

4. Draft notification and public feedback
- To facilitate the committee’s formation, the Transport Department has issued a draft notification proposing the insertion of Chapter 5A in the Karnataka Motor Vehicle Rules, 1989
- Citizens, NGOs, and RTC unions can submit objections or suggestions to the Transport Secretary by October 8
- However, the current draft does not explicitly mention public participation during fare revision deliberations

5. Why this matters: a shift from political to regulatory oversight
- Historically, fare revisions have been delayed due to political considerations. For instance, BMTC fares were last revised in 2014 and only again in 2025
- The new committee aims to depoliticize fare decisions and ensure timely revisions based on economic realities
- KSRTC MD Akram Pasha noted that rising costs have long outpaced fare adjustments, straining RTC finances

6. Expected impact on commuters and RTCs
- Fare hikes are expected to be modest, ranging from 2 to 5 percent
- Regular revisions could help RTCs avoid financial distress and improve service quality
- Commuters may benefit from more transparent fare structures and better-maintained fleets

7. Next steps and timeline
- Once the final notification is published, the file will be sent to the Transport Secretary and Minister
- The Chief Minister will then nominate the committee members
- The first round of fare revision under this new framework is expected to be implemented in 2027

Closing thought:
Karnataka’s move to institutionalize fare revisions signals a shift toward more accountable and data-driven governance in public transport. While the impact on commuters will depend on how transparently and fairly the committee operates, the framework sets the stage for a more sustainable future for the state’s road transport system.

Sources: Deccan Herald, Times of India, News Karnataka