Karnataka transport corps owe ₹9,723 crore debt, BJP blames Shakti scheme

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Karnataka transport corps owe ₹9,723 crore debt, BJP blames Shakti scheme

Synopsis

Karnataka's four state transport corporations are reportedly sitting on a combined debt of ₹9,723.99 crore, with BJP's R. Ashoka alleging ₹5,651.24 crore in unpaid Shakti scheme dues is the root cause — leaving corporations unable to buy diesel, pay salaries, or clear provident fund arrears. The Congress government is yet to respond to the specific figures.

Key Takeaways

Ashoka alleged Karnataka's four transport corporations carry a combined debt of ₹9,723.99 crore .
The state government allegedly owes ₹5,651.24 crore in unpaid reimbursements under the Shakti scheme for free women's bus travel.
Individual liabilities: KSRTC ₹2,183.49 crore , BMTC ₹1,068.90 crore , KKRTC ₹1,045.95 crore , NWKRTC ₹1,352.90 crore .
Corporations also face ₹2,658.18 crore in unpaid PF dues, ₹538.18 crore owed to retired employees, and ₹1,053.88 crore in diesel payment arrears.
BJP has warned of a formal protest if the government does not release pending funds immediately.

Karnataka's four state-run transport corporations are staring at a combined debt of ₹9,723.99 crore, with the Bharatiya Janata Party (BJP) blaming the Congress government's flagship Shakti scheme for the financial deterioration. R. Ashoka, Leader of Opposition in the Karnataka Legislative Assembly, on Wednesday alleged that the state government had failed to reimburse the corporations for free bus travel provided to women under the scheme, leaving them unable to meet basic operational costs.

The Debt Breakdown

According to figures cited by Ashoka, the government owes the transport corporations ₹5,651.24 crore in pending Shakti scheme reimbursements. The four corporations have individually accumulated significant outstanding liabilities: Karnataka State Road Transport Corporation (KSRTC) at ₹2,183.49 crore, Bengaluru Metropolitan Transport Corporation (BMTC) at ₹1,068.90 crore, Kalyana Karnataka Road Transport Corporation (KKRTC) at ₹1,045.95 crore, and North West Karnataka Road Transport Corporation (NWKRTC) at ₹1,352.90 crore.

Mounting Operational Liabilities

Beyond loan obligations, Ashoka alleged the corporations are burdened by ₹2,658.18 crore in unpaid employees' provident fund dues, ₹538.18 crore owed to retired employees, and ₹1,053.88 crore in pending diesel payments. He claimed the corporations currently lack funds to purchase diesel, procure urgent spare parts, or pay staff salaries and retirement benefits.

'Transport corporations do not have money to purchase diesel, procure urgent spare parts or pay salaries and retirement benefits to employees,' Ashoka alleged in his statement.

BJP Targets CM and Transport Minister

Ashoka directed sharp criticism at Chief Minister D.K. Shivakumar and Transport Minister Byrathi Suresh, accusing them of failing to address the crisis. He alleged that the Shakti scheme — which provides free bus travel to women across Karnataka — had 'broken the backbone' of the state's public transport system, while the government had not followed through on the financial commitments the scheme entails.

Targeting Suresh specifically, Ashoka accused the minister of prioritising publicity over governance. 'Stop the photo-shoot drama of making sudden visits to bus stands and posing before cameras. Transport corporations cannot be financially strengthened through photographs; they need the money that the government owes them,' he said.

Smart Cards and Protest Warning

Ashoka also criticised the Congress government's delay in rolling out smart cards for public transport users, alleging repeated assurances without concrete follow-through. He demanded the immediate release of the ₹5,651 crore in pending reimbursements, warning that the BJP would launch a formal protest in support of transport employees if the government failed to act. 'Do not turn the families of transport employees into paupers for your political interests,' he said.

This comes amid broader scrutiny of the Shakti scheme's fiscal impact, with the Congress government yet to publicly respond to the specific figures cited by the opposition. How the state government addresses the reimbursement backlog will be closely watched by both transport employees and commuters across Karnataka.

Point of View

But the numbers it cites — if accurate — represent a structural stress test for Karnataka's public transport. The Shakti scheme was a Congress electoral promise that won votes; the question now is whether the state budget has been calibrated to honour the reimbursement obligations that make the scheme fiscally sustainable. A ₹5,651 crore pending reimbursement is not a rounding error — it is the difference between corporations that function and ones that slowly hollow out. The Congress government's silence on the specific figures is conspicuous. If the debt is real and the reimbursements are genuinely delayed, the political cost of inaction will eventually fall on the same commuters the Shakti scheme was designed to benefit.
NationPress
2 Sept 2026

Frequently Asked Questions

What is the financial crisis facing Karnataka's transport corporations?
Karnataka's four state-run transport corporations — KSRTC, BMTC, KKRTC, and NWKRTC — have allegedly accumulated a combined debt of ₹9,723.99 crore, according to figures cited by BJP's R. Ashoka. The BJP alleges the crisis is driven largely by ₹5,651.24 crore in unpaid Shakti scheme reimbursements owed by the state government.
What is the Shakti scheme and why is it under scrutiny?
The Shakti scheme is a Karnataka government programme that provides free bus travel to women on state-run transport corporations. The BJP alleges that while the scheme has been operational, the government has not reimbursed the corporations for the cost of providing this free travel, leading to a severe cash crunch.
Which transport corporations are affected and by how much?
All four state-run corporations are affected: KSRTC has outstanding liabilities of ₹2,183.49 crore, BMTC ₹1,068.90 crore, KKRTC ₹1,045.95 crore, and NWKRTC ₹1,352.90 crore, according to figures cited by Ashoka.
What has the BJP demanded from the Karnataka government?
BJP's R. Ashoka has demanded the immediate release of ₹5,651 crore in pending Shakti scheme reimbursements and warned that the party will launch a formal protest in support of transport employees if the government fails to act.
Has the Karnataka government responded to these allegations?
The Congress government, including Chief Minister D.K. Shivakumar and Transport Minister Byrathi Suresh, had not publicly responded to the specific figures cited by Ashoka at the time of reporting.
Nation Press
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