Bengaluru
The Karnataka government has proposed the formation of a regulatory committee that would oversee bus fare revisions for the state’s four road transport corporations. The move is aimed at reducing political delays in fare hikes and ensuring financial stability of public transport undertakings.
Committee formation
According to the draft notification, the panel will be headed by a retired IAS officer of the rank of additional chief secretary or a retired High Court judge. It will also include a retired government secretary or principal secretary, and a financial or transport expert. The managing director of the concerned road transport corporation (RTC) will serve as the member-secretary.
The committee members, including the chairperson, will hold office for a term of three years. Its primary responsibility will be to examine the financial health of the four RTCs — KSRTC, BMTC, NWKRTC, and KKRTC — and make recommendations on fare revisions and surcharges.
Periodic fare revisions
As per the proposal, bus fares may be revised at least once every two years. The RTC boards will retain the authority to accept or reject the committee’s recommendations. Officials say the objective is to make fare changes a technical and regular exercise, rather than one delayed by political considerations.
The panel will also review proposals from RTCs, consider fuel price fluctuations and operating costs, and recommend necessary adjustments. This system is expected to help corporations manage rising expenses related to maintenance, salaries, and fuel, while maintaining service levels.
Concerns about public involvement
The draft notification, however, does not specify whether the public will have an opportunity to submit suggestions or objections before fare changes are implemented. This omission has raised concerns that the process may overlook passenger interests, especially in urban areas like Bengaluru where commuters are highly sensitive to fare hikes.
Transport experts suggest that public participation could make the system more transparent and acceptable. They point out that similar fare regulatory bodies in sectors like electricity often provide a platform for citizens’ feedback before approving tariff changes.
Financial sustainability of RTCs
The proposal comes at a time when Karnataka’s road transport corporations are facing mounting operational costs and debt. Delays in fare revisions have long been cited as a major reason for recurring losses. By setting up an independent panel, the government hopes to depoliticise the process and improve the financial health of RTCs.
Officials also indicated that while periodic fare hikes are inevitable, the government will continue to explore subsidies for certain passenger categories to balance social obligations with financial sustainability.
Conclusion
The Karnataka government’s plan to create a regulatory panel for bus fares signals a major shift in how transport pricing will be managed in the state. While it could bring greater stability to RTC finances, the absence of a mechanism for public consultation may draw criticism. The final notification, once issued, is expected to clarify the scope and functioning of the committee