Karnataka Private Bus Operators Warn of Statewide Protest Over Losses from Shakti Scheme and BMTC Expansion
Operators blame free travel scheme, expanding public transport, and unfair tax structure for mounting financial distress.
Bengaluru (Fikrokhabar News): Private bus operators across Karnataka are warning of a statewide protest if the government does not address their financial grievances within 10 days. The Karnataka State Private Bus Owners Association has submitted a memorandum to Transport Minister T. Ramalinga Reddy, citing severe losses due to the state’s Shakti Scheme, BMTC expansion, and tax disparities.
The association says the Shakti Scheme — which provides free bus travel to women on government buses — has drastically reduced the number of fare-paying passengers using private buses. This has directly affected their revenues.
“The Shakti Scheme has caused a sharp decline in our passenger base. We are incurring heavy losses,” said S. Nataraj Sharma, President of the Association.
The memorandum also criticizes the expansion of BMTC services beyond Bengaluru city limits — from a 25-kilometre to a 40-kilometre radius — which has led to increased overlap with private routes. Private operators, who do not receive subsidies like the state-run corporations, claim they are being pushed out of long-standing service areas.
Additionally, private bus owners have flagged disparities in the All India Tourist Permit tax structure. Buses registered in states like Nagaland and Arunachal Pradesh are reportedly paying just ₹60,000 annually to operate in Karnataka, while local operators are charged between ₹82,000 and ₹1.58 lakh — a situation the association calls “unfair competition.”
Operators allege that illegal and under-regulated buses are further eating into their income, worsening an already difficult business environment.
Demands and Warning
The association has urged the government to:
- Reassess tax structures for local operators
- Restrict further BMTC expansion into their routes
- Offer subsidies or compensation for losses due to the Shakti Scheme
- Act against illegal operators
If no action is taken within the next 10 days, Sharma warned, private operators will consider registering their vehicles in other states and re-entering Karnataka to bypass the current tax regime, or will begin an organized protest across the state.
This warning comes just days after the state government celebrated the Shakti Scheme’s global recognition for having issued over 500 crore free tickets to women, entering the International Book of Records. While hailed as a success in terms of public welfare, the scheme is now facing criticism from the private sector for its unintended economic consequences.
