The state government has declined additional funds to the Karnataka State Road Transport Corporation (KSRTC) and the Kalyana Karnataka Road Transport Corporation (KKRTC) for salary and fuel payments.
It also asked both transport corporations to mobilise resources internally to fund salary revisions.
Pushpa V S, Under Secretary, Transport Department, specified this in a letter to the managing directors of four RTCs on June 7. She cited notes from the Finance Department for the decision.
The letter came to light on Wednesday, a day after the four RTCs clocked a record ridership of 1.16 crore, including 51.52 lakh under the free bus travel scheme.
The Shakti scheme is estimated to cost the state government Rs 4,051.56 crore annually going by the estimated average daily ridership of 41.81 lakh.
The four RTCs had a traffic revenue of Rs 8,360 crore in 2022-23 and received a government subsidy of Rs 3,606.52 crore. This included special grants of Rs 2,239 crore, concessional pass reimbursement of Rs 1,166.62 crore, and viability gap funding of Rs 200 crore. Their fuel bill last year was Rs 4,483.98 crore. Staff wages accounted for Rs 6,087.31 crore.
In March, the state government announced a 15% hike in basic pay for the 1.04 lakh employees of the RTCs.
KSRTC and KKRTC chiefs subsequently wrote letters to the government seeking additional grants.