Free-travel scheme to cost KSRTC ₹800 crore, Kerala govt to compensate

Thiruvananthapuram: Women and transgender persons will be allowed to travel free in ordinary KSRTC buses from June 15 under the state govt’s Priyadarshini scheme, a move expected to cost around Rs 800 crore annually.

Announcing the cabinet decision on Wednesday, chief minister V D Satheesan said the benefit, introduced under the govt’s Indira Guarantee programme, would be available irrespective of age or income. He said the govt would fully compensate the Kerala State Road Transport Corporation (KSRTC) for the revenue loss arising from the initiative.

According to govt estimates, the programme will require Rs 65 crore-Rs 70 crore every month. This will be provided over and above the Rs 1,250 crore already being extended annually to KSRTC, he said.

The transport corporation, however, continues to face severe financial strain despite substantial govt support. Official figures show that its accumulated losses increased from Rs 14,707.85 crore in 2020-21 to Rs 20,949.96 crore in 2024-25, a rise of more than Rs 6,200 crore in four years. In recent years, KSRTC has received between Rs 1,400 crore and Rs 2,000 crore annually through grants, loans and subsidies.

Provisional accounts for 2024-25 show KSRTC received govt support of Rs 1,602.41 crore, while its revenue improved to Rs 1,580.37 crore. Despite the increase in earnings, accumulated losses continued to grow, highlighting the corporation’s fragile financial position. Official data indicate that in some years, govt assistance exceeded the corporation’s annual revenue.

The free-travel scheme will be implemented across KSRTC’s network of ordinary buses operating in the state, adding to the govt’s financial commitment towards sustaining the loss-making public transport utility.

Satheesan said there were no immediate plans to engage private buses to meet any increase in passenger demand. He added that around 28% of KSRTC’s ordinary bus services operate in the Malabar region. The govt will review the scheme every month and address any shortcomings identified during implementation, he said.