Bengaluru Metropolitan Transport Corporation (BMTC) is facing financial pressure from salary payments, diesel payments, and fleet maintenance, and the KSRTC Employees' Union worries the corporation may not have enough money to pay employees this month.
Union president Jagadish HR said the financial strain has been compounded by overdue reimbursements under Karnataka’s Shakti scheme that allows women to travel free on government buses. He also claimed that funds meant for employees’ provident fund and insurance payments have been diverted to meet other financial needs.
The claims come days after Karnataka Transport Minister Byrathi Suresh said on the Legislative Council that the state's four road transport corporations are facing an annual financial shortfall of around Rs 8,000 crore and struggle to meet salary obligations.
BMTC has faced pressure from Shakti Scheme Dues
The Shakti scheme has become a major financial component of Karnataka’s public transport system since its launch in June 2023. Women and transgender passengers can travel free on the regular, non-luxury government buses operated by the state's four transport corporations.
According to figures provided by the Transport Minister in the Karnataka Legislative Council, the four corporations spent Rs 20,955.96 crore on the scheme between June 11, 2023 and July 31, 2026. The government had released Rs 15,305.01 crore, while the remaining amount was Rs 5,650.95 crore.
The minister had also said the Transport Department had asked the Finance Department to pay off the outstanding amount. The Finance Department replied that there was no scope to provide additional funds, with existing budgetary provisions and grants already extended to the transport corporations.
The new union allegations are centered around the impact of this financial gap on BMTC’s day-to-day operations.
Union Raises Issues of Salaries, Diesel And Maintenance
Jagadish claimed that BMTC is struggling to pay its employees this month. He also claimed that more than 1,000 employees have been waiting for gratuity payments since 2023.
BMTC has around Rs 650 crore in pending diesel payments, the union said. The corporation requires around 2.5 lakh litres of diesel every day to run its fleet, and fuel payments are a major recurring expense.
The union claimed that a total of Rs 50 crore is required for the corporation to purchase spare parts, but it has been unable to obtain them. Poor maintenance has led to buses not being maintained properly and the risk of accidents increasing, they said.
These claims have not been independently established in the report and were made by the employees' union while highlighting the corporation's financial difficulties.
The union also wants the state government to respond with immediate action to address the outstanding payments and ensure that BMTC can continue to operate without affecting employees or passenger safety.
Four Transport Corporations Face Rs 8,000 Crore Annual Shortfall
The financial pressures are not limited to BMTC. Karnataka's four state-run transport corporations - BMTC, KSRTC, North Western Karnataka Road Transport Corporation and Kalyana Karnataka Road Transport Corporation - are under immense financial pressure.
Transport Minister Byrathi Suresh told the Legislative Council on September 24 that the corporations were suffering an annual loss of about Rs 8,000 crore. He said much of the pressure was due to repeated increases in diesel and other petroleum product prices and that bus fares had not been increased to go hand in hand with these costs.
As an interim measure, the minister said the government would also consider a fare increase to improve the financial position of the corporations. He also said the government was concerned about the response to a fare hike and was trying to persuade Chief Minister DK Shivakumar of such a measure.
The transport corporations had also sought additional revenue through a proposed fare revision. A separate report said the corporations had requested financial support related to Shakti scheme expenses and that public feedback had been invited on a proposed fare increase. No fare hike had been approved at that stage.
Shakti Scheme Records Nearly 800 Crore Free Journeys
Despite the financial problems of the transport corporations, the Shakti scheme has been widely used.
From June 2023 to July 2026, the four corporations made 797.16 crore free journeys under the scheme. The number of journeys increased from 183.06 crore in 2023-24 to 244.65 crore in 2024-25 and 275.70 crore in 2025-26.
In the first four months of the 2026-27 financial year, another 93.75 crore free journeys were recorded up to July.
The Karnataka government has also provided financial assistance to the four transport corporations under several other heads, such as student bus passes, loan and interest payments, bus purchases, construction, viability gap funding and motor vehicle tax exemptions. According to the minister's statement, total financial assistance provided to the corporations under various heads over the previous three years stood at Rs 18,459.37 crore.
The current problem is the timing of how quickly reimbursements and other financial support can reach the transport corporations, while they still operate large public bus networks.
BMTC employees are concerned about how the corporation will be able to meet its salary commitments this month. The union has called for immediate action, and Karnataka's transport corporations’ financial situation is still being discussed among the Transport and Finance departments.
