Bengaluru
In a significant move aimed at ensuring financial stability for state-run transport corporations, the Karnataka government has announced the formation of a Public Transport Fare Regulation Committee (PTFRC) on the lines of the Karnataka Electricity Regulatory Commission (KERC).
Until now, passenger fares in the state’s road transport corporations were revised irregularly and often delayed due to political considerations. The government said that rising operational costs—particularly diesel prices and staff expenses—make scientific and periodic fare adjustments unavoidable. Daily diesel expenditure has surged from ₹7 crore in 2014 to ₹13 crore in 2025, while staff costs have doubled from ₹6 crore to ₹12 crore over the same period. Officials warned that without timely revisions, transport corporations could slip into severe financial distress, undermining their ability to provide reliable services.
The PTFRC will function as an independent body to recommend small, regular fare revisions, preventing the steep one-time hikes that burden passengers every eight to ten years. The committee will have a Chairperson, who will be either a retired Additional Chief Secretary or a former Karnataka High Court judge, and two members—one a retired government secretary with legal expertise and the other an industry or finance specialist. The Managing Director of the Karnataka State Road Transport Corporation will serve as Member-Secretary.
The panel will study the financial health of transport corporations, suggest periodic fare revisions, and recommend surcharges or fees to improve operations. Its annual report will be tabled before the state legislature between April and December each year.
