No clarity in Karnataka Budget on reimbursements to RTCs and Escoms for Shakti, Gruha Jyoti schemes

In a Budget that was eagerly awaited not just for being the first by a new State government, but also for curiosity about the implementation of the five guarantees by Congress, there appears to be no clarity on how the respective corporations and companies will be reimbursed for the welfare schemes.

Bengaluru 

In a Budget that was eagerly awaited not just for being the first by a new State government, but also for curiosity about the implementation of the five guarantees by Congress, there appears to be no clarity on how the respective corporations and companies will be reimbursed for the welfare schemes.

The State Budget that has allocated ₹2,800 crore for the government’s flagship scheme Shakti, has not made any commitment on monthly reimbursement of the tickets issued by the Road Transport Corporations (RTC). The Transport Department which is expecting monthly reimbursement has already submitted its bill for June. 

Minister for Transport and Muzrai, Ramalinga Reddy is optimistic about on-time-payment to RTCs as and when the bills are presented. He said the allocation the State has set aside till March, 2024, for about nine months, makes it amply clear that ticket fares are reimbursed monthly. However, so far, the State government has not introduced any mechanism for the payment and any delay would hinder fleet operation. The RTCs are currently foregoing daily revenue. 

The Budget has estimated ₹4,000 crore annual cost for the scheme, but some experts say that it may go up to ₹5,000 crore. If the government increases the fleet, the cost is bound to go up. 

Bengaluru Bus Prayanikara Vedike (BBPV), while hailing the scheme as revolutionary, has urged the State to make regular payments. “It is advisable to devise a mechanism where the RTCs are reimbursed every month, the revenue the transport corporations forfeiting on account of this scheme.” It should be noted that Tamil Nadu, Delhi and Punjab, which have implemented free bus travel schemes, have a system in place for monthly reimbursement. 

With the State government allocating ₹500 crore for purchase of new buses, Mr. Reddy says the corporations may buy over 1,200 buses. Currently, the total number of buses operating in the State is pegged at 24,000 and the process is underway to induct additional 4,000. Even after junking old buses, the fleet will increase with the fresh allocation, he added.