Bengaluru, October 1, 2026: Karnataka’s four state-run road transport corporations are facing mounting financial pressure, with their combined liabilities reaching approximately ₹8,095 crore. The situation has been further strained by thousands of crores in pending reimbursements from the state government under the Shakti free bus travel scheme.
The four corporations — KSRTC, BMTC, KKRTC and NWKRTC — are dealing with liabilities related to provident fund payments, employee expenses, retirement benefits, fuel bills and other financial commitments. Around ₹2,700 crore relates to provident fund dues, approximately ₹2,500 crore to staff expenses and retirement benefits, and about ₹1,100 crore to fuel bills.
A major concern is the delay in reimbursement under the Shakti scheme, which provides free travel for eligible women on state-run buses. Around ₹5,648 crore in reimbursements was reported as pending from the Karnataka government. A separate report published on September 29 put the outstanding figure at approximately ₹5,651 crore.
According to the latest figures reported by The Times of India, KSRTC is awaiting approximately ₹2,183 crore, while BMTC is due ₹1,352 crore. KKRTC and NWKRTC are awaiting around ₹1,045 crore and ₹1,068 crore respectively.
The cash-flow pressure could affect routine expenses as well as longer-term investments in new buses, vehicle maintenance, recruitment and fleet expansion. The four corporations are also reported to have a combined shortage of around 15,718 employees, adding to their operational challenges.
Financial pressures have also renewed discussion about bus fares. A committee is expected to submit recommendations to the state government on a possible fare revision, although any change would require government approval.
For Karnataka’s public transport system, the immediate challenge is balancing affordable and subsidised mobility with the financial resources required to maintain buses, pay employees and sustain services across Bengaluru and the rest of the state.
