Karnataka Govt Forms Public Transport Fare Regulatory Committee on KERC Model
Bengaluru: In a major policy move, the Karnataka government has issued an order constituting a Public Transport Fare Regulatory Committee under the Karnataka Motor Vehicle Rules, 1989, modeled on the Karnataka Electricity Regulatory Commission (KERC) framework.
The newly formed committee will comprise a chairperson and two members. The chairperson will be either a retired Additional Chief Secretary of the government or a retired judge of the High Court. Among the two members, one will be a retired Principal Secretary or government secretary with a legal background, while the other will be an industrial or financial expert. The Managing Director of the State Road Transport Corporation (KSRTC) will serve as the member-secretary.
Until now, fare revisions in Karnataka’s state road transport corporations were largely influenced by political decisions rather than a structured mechanism. The government said the committee will ensure scientific and periodic fare revisions, factoring in rising diesel prices, operational costs, and financial sustainability of transport undertakings. Without such revisions, transport corporations risk plunging into financial distress, affecting service delivery.
The committee will regularly study the financial conditions of the corporations and recommend fare adjustments, surcharges, or additional levies as required. Its recommendations will also be submitted as an annual report to the state legislature between April 1 and December 31 every year.
The government emphasized that smaller, periodic fare hikes will be more balanced and less burdensome for commuters compared to steep hikes once every 8–10 years. By insulating fare regulation from political interference, the committee is expected to function independently—similar to the KERC model—and strengthen the economic viability of public transport in Karnataka.
About the Author
