This story is from June 23, 2023

‘Shakti scheme will run as long as govt sponsors it, RTCs are in debt’

‘Shakti scheme will run as long as govt sponsors it, RTCs are in debt’
Bengaluru: Congress’ big poll promises have been a matter of interest to all ever since the government took charge. And prominent among them was the free Shakti bus pass scheme for women and the transgender community. According to transport minister R Ramalinga Reddy, the scheme has been a grand success, notwithstanding a few “hiccups”. However, he admitted that the Bangalore Metropolitan Transport Corporation, Karnataka State Road Transport Corporation, Northwest Karnataka Road Transport Corporation and Northeast Karnataka Road Transport Corporation are under loss and cannot run the scheme without the government fending off the bills.
1x1 polls
Excerpts...
What is the present
condition of RTCs?
Between 2013 and 2018, when I was the transport minister, the RTCs were running on an almost ‘no-profit, no-loss venture’. There was a Rs 200-crore loss due to rising diesel rates in 2018. Five years and eight months later, the debt has increased to Rs 4,000 crore. The primary reason is the Covid pandemic period which saw the RTCs suffer huge losses. Our biggest challenge is to pay the salaries and diesel procurement costs which account for 90% of our expenditure.
Haryana
Jammu & Kashmir
  • Alliance View
    i
  • Party View
Seats: 90
L + W
Majority: 46
BJP
49
CONG
36
INLD
2
AAP
0
OTH
3

Leads + Wins: 90/90

BJP LEADING
Source: PValue
What’s the solution?
We’re in talks with the MDs of the RTCs and are seeking support from the government for purchase of buses. Every year, we place an order to procure 3,000 to 4,000 buses to replenish the scrapped ones. We’re requesting the government foot the bills for it so that the RTCs can run at least on a no-profit, no-loss level.
You have large tracts of properties owned in the name of RTCs, some of which were proposed for lease or privatisation.

Why not monetise them?
You cannot expect public transportation corporations across the state to run a profitable business. We do have large properties, including 800 acres in the name of BMTC alone. But we do not intend to utilise them, as they may be required for future projects with the city ever expanding.
So, what is your priority?
Recruitment and bus procurement. We have to fill 15,000 vacancies in RTCs. We have placed orders for 4,000 buses, which have been either sanctioned, work orders issued, or are ready to operate. Moreover, the Shakti scheme is a big responsibility.
So how has the scheme been faring?
The scheme has been quite smooth, by and large. We’ve not received any large-scale complaints from any RTC. The only place where we found a rush was along KSRTC routes, where women in large numbers have been using it to go on a pilgrimage run. We are now introducing 300 additional schedules.
It has had a cascading effect on private transporters. Will you consider compensating them?
There has been a loss of ridership for private buses, but things will gradually settle down as time passes, with the initial euphoria likely subsiding. The MDs suggest that once the colleges open full-scale and people start falling into a routine schedule, we will see private buses have an almost normal ridership. As of now, we’re not considering any compensation for them.
The government had proposed an integrated smart card for Metro and BMTC...
It is still on the cards, with companies providing us prototypes. It works better in conductor-less buses.
What is the government’s position on procurement of electric buses?
We can take them on lease. It is not possible to buy them until the central and state governments give subsidies.
author
About the Author
Sandeep Moudgal

Journalist by profession, 15 years in the field with Politics and Policy as forte. He is an Assistant Editor with Bengaluru bureau and Karnataka as his jurisdiction. Has a Masters degree in Ancient History and Archaeology from Mysore University along with a PGDJ from the Asian College of Journalism.

End of Article
FOLLOW US ON SOCIAL MEDIA