Fixed rents for owners, fuel by state: KSRTC with rescue plan for private buses

THIRUVANANTHAPURAM: The Kerala government is considering a major policy shift to bring private buses under the Kerala State Road Transport Corporation (KSRTC) banner. The proposed initiative aims to expand the government’s free travel scheme for women to regions like Malabar, while simultaneously offering a lifeline to the financially strained private transport sector. Preliminary discussions on the project have already commenced.

The model draws inspiration from states like Uttar Pradesh, Karnataka, and Telangana, where state-run transport corporations successfully integrate private operations under a unified public network.

Under the proposed framework, KSRTC will operate private buses on a fixed-rental basis. While the bus owners will remain responsible for paying their drivers, KSRTC will deploy its own conductors to manage ticketing. The public transport corporation will also bear all fuel and maintenance expenses.

Officials believe the rollout will significantly improve public transit frequency, particularly on underserved rural routes, while shielding commuters from sudden fare hikes.

The private bus sector has long complained about soaring operational costs, frequently demanding tax concessions and fare revisions to stay afloat. Private operators have also blamed welfare schemes, such as the Priyadarshini project, for a sharp decline in daily collections. A guaranteed rental payout, expected to be higher than average daily earnings, is being viewed as a viable solution to address these grievances.

Key strategic and economic advantages:

• Zero Fleet Expansion Costs: The government can expand its rural and urban network without the massive upfront capital expenditure of purchasing new buses.
• Regulated Fares: Ticket pricing and student concessions can be streamlined and regulated systematically by the state.
• Complete Nationalization: The move will accelerate the long-pending nationalization of public transport routes across the state.
• Employment Generation: The integration will create a substantial number of new vacancies and deployment opportunities for KSRTC conductors.