Karnataka Transport Corporations Face 900 Crore Shortfall Under Shakti Scheme: NWKRTC Chairman Seeks Urgent Government Action

Transport Minister Ramalinga Reddy addressed the financial concerns of Karnataka's road transport corporations.

Congress MLA and NWKRTC chairman Raju Kage has expressed alarm over delayed government funding, pointing to a significant 900 crore shortfall under the Shakti scheme which provides free travel for women.

Kage emphasized that the corporation is facing financial struggles and urged the government to release the outstanding funds.

"We aren't generating profits currently. We're struggling and working toward becoming profitable. The government owes us approximately 900 crore for the Shakti scheme. Receiving these funds would allow us to break even. We haven't received payments since the scheme's implementation about two years ago. The government currently pays about 70 percent while withholding 30 percent. Once this issue is resolved, we'll achieve a no-loss, no-profit position. We've already informed both the Chief Minister and Transport Minister about this situation and anticipate a resolution soon," he stated.

In response, Transport Minister Ramalinga Reddy said, "When the road transport corporations faced difficulties, Chief Minister Siddaramaiah approved 2,000 crore for them. Over 500 crore has already been allocated to NWKRTC. Additionally, we're providing 700 new buses to the corporation, valued at approximately 350 crore. In total, the corporation is receiving 850 crore - 500 crore as a government-repaid loan and 350 crore through new buses. This situation needs proper context for understanding."

Karnataka's road transport corporations, including KSRTC, BMTC, NWKRTC, and KKRTC, are experiencing substantial financial challenges. As of November 2024, their combined liabilities reached approximately 6,330 crore, with immediate liabilities of 3,000 crore. KSRTC recently requested a 623 crore loan to settle statutory obligations, including provident fund contributions and fuel expenses. The estimated outstanding arrears across all corporations total around 4,800 crore.

The financial strain stems primarily from Covid-19 disruptions, delayed fare increases, and the Shakti scheme that offers free bus transportation for women.