<p>Kalaburagi: The state government’s move to increase the sales tax on diesel by Rs 2 per litre has been costing the Kalyan Karnataka Road Transport Corporation (KKRTC) Rs 6.30 lakh per day. Karnataka has raised the sales tax on diesel to 21.17% from 18.44%, with effect from April 1, 2025, resulting in a price hike of Rs 2 per litre. </p><p>KKRTC, which operates its buses in all seven districts of Kalyana Karnataka region and neighbouring Vijayapura district, has a total of 5,014 buses of various types. Of these, 4,650 buses ply every day on average. These buses travel a total distance of 16.25 lakh km per day and require 3.18 lakh litres of diesel daily. Thus, the average price of diesel purchased by KKRTC has increased from Rs 86.43 to Rs 88.44 per litre. This increase will cost KKRTC Rs 23.21 crore annually.</p><p>KKRTC suffered a loss of Rs 115 crore in the financial year 2022-2023, Rs 161 crore in 2023-24 and an estimated Rs 148 crore in 2023-24. Along with this, the annual cost of the diesel price hike of Rs 23.21 crore has further aggravated the loss of the transport corporation, jeopardising its progress, the authorities claimed. </p><p><strong>‘Shakti’ scheme</strong></p><p>The ‘Shakti’ scheme, which provides free travel to women, has served as an economic boost to the continuously loss-making KKRTC. Its officials claimed that the losses of the corporation are decreasing due to the release of funds by the state government under the Shakti scheme from time to time.</p><p>According to the KKRTC Corporation, women have made a total of 61.52 crore rides from June 11, 2023, since the launch of the Shakti scheme, until March 2025. The value of these zero tickets is Rs 2,102 crore. Out of this, KKRTC has received Rs 1,623 crore in the form of grants from the government. The remaining Rs 478 crore is yet to come from the government.</p><p>The officials said the corporation will jump from a loss to a profit if the state government settles its dues under the Shakti scheme. </p><p>Meanwhile, KKRTC Managing Director M Rachappa said that the diesel price hike will cost KKRTC Rs 23 crore per year, and efforts will be made to draw the government’s attention to this issue.</p><p>KKRTC Managing Director M Rachappa said, “The diesel price hike will cost KKRTC Rs 23 crore per year, and efforts will be made to draw the government’s attention to this issue".</p>
<p>Kalaburagi: The state government’s move to increase the sales tax on diesel by Rs 2 per litre has been costing the Kalyan Karnataka Road Transport Corporation (KKRTC) Rs 6.30 lakh per day. Karnataka has raised the sales tax on diesel to 21.17% from 18.44%, with effect from April 1, 2025, resulting in a price hike of Rs 2 per litre. </p><p>KKRTC, which operates its buses in all seven districts of Kalyana Karnataka region and neighbouring Vijayapura district, has a total of 5,014 buses of various types. Of these, 4,650 buses ply every day on average. These buses travel a total distance of 16.25 lakh km per day and require 3.18 lakh litres of diesel daily. Thus, the average price of diesel purchased by KKRTC has increased from Rs 86.43 to Rs 88.44 per litre. This increase will cost KKRTC Rs 23.21 crore annually.</p><p>KKRTC suffered a loss of Rs 115 crore in the financial year 2022-2023, Rs 161 crore in 2023-24 and an estimated Rs 148 crore in 2023-24. Along with this, the annual cost of the diesel price hike of Rs 23.21 crore has further aggravated the loss of the transport corporation, jeopardising its progress, the authorities claimed. </p><p><strong>‘Shakti’ scheme</strong></p><p>The ‘Shakti’ scheme, which provides free travel to women, has served as an economic boost to the continuously loss-making KKRTC. Its officials claimed that the losses of the corporation are decreasing due to the release of funds by the state government under the Shakti scheme from time to time.</p><p>According to the KKRTC Corporation, women have made a total of 61.52 crore rides from June 11, 2023, since the launch of the Shakti scheme, until March 2025. The value of these zero tickets is Rs 2,102 crore. Out of this, KKRTC has received Rs 1,623 crore in the form of grants from the government. The remaining Rs 478 crore is yet to come from the government.</p><p>The officials said the corporation will jump from a loss to a profit if the state government settles its dues under the Shakti scheme. </p><p>Meanwhile, KKRTC Managing Director M Rachappa said that the diesel price hike will cost KKRTC Rs 23 crore per year, and efforts will be made to draw the government’s attention to this issue.</p><p>KKRTC Managing Director M Rachappa said, “The diesel price hike will cost KKRTC Rs 23 crore per year, and efforts will be made to draw the government’s attention to this issue".</p>
