Karnataka govt. releases draft to set up Fare Regulatory Committee for public transport

The Karnataka government has proposed an amendment to the Karnataka Motor Vehicles Rules, 1989, to establish a Public Transport Fare Regulatory Committee aimed at streamlining fare revisions for State-run transport corporations akin to the Karnataka Electricity Regulatory Commission (KERC).

The draft rules were notified on September 9 and will come into effect after final approval, according to a release by the Karnataka State Road Transport Corporation (KSRTC).

According to the draft, the committee will comprise a retired Additional Chief Secretary or a retired High Court judge as chairperson, along with two members — one being a retired Principal Secretary or Secretary with a legal background, and the other being an industry or financial expert. The Managing Director of KSRTC will serve as the member-secretary.

The committee’s primary function will be to study the financial health of transport corporations such as KSRTC and Bengaluru Metropolitan Transport Corporation (BMTC), and recommend fare revisions and surcharges. It will also suggest measures to improve operational efficiency and financial sustainability, the draft notification stated. Proposals for fare hikes or surcharges can be submitted by the corporations, which will then be reviewed by the committee before being adopted by the respective boards.

According to the notification, the members will serve a term of up to three years, without eligibility for re-nomination. The remuneration will be equivalent to their last drawn salary, including pensions, while travel allowances will follow existing government norms. The committee is mandated to meet at least once every three months, with a minimum quorum of two members.

Additionally, the committee must submit an annual report of its recommendations to the State government, which will be laid before both Houses of the Legislature.

The State government has invited objections or suggestions from the public within 30 days of the notification’s publication on the Official Gazette. As per the notification, objections and suggestions can be submitted to: Secretary to Government, Transport Department, Room No. 123, Ground Floor, M.S. Building, 3rd Gate, Bengaluru – 560 001.

At present, Karnataka’s four road transport corporations — KSRTC, BMTC, North Western Karnataka Road Transport Corporation (NWKRTC) and North Eastern Karnataka Road Transport Corporation (NEKRTC) are required to submit individual proposals to the State government whenever a fare revision is sought. These proposals, usually finalised in board meetings, go through several layers of scrutiny and approval, often making the process lengthy and complex.

“To address this, the Transport Department has proposed the formation of a commission on the lines of the KERC, which regulates power tariffs in the State. The new body would be empowered to take decisions on fare revisions and related matters, reducing the burden on individual corporations and ensuring a more streamlined mechanism,” an official explained.