Free bus travel for women: Kerala Transport Minister explains why KSRTC need not worry

As the UDF-led state government's decision to provide free travel for women on KSRTC buses from June 15 sparks debate across Kerala, Transport Minister CP John has sought to address concerns over the scheme's financial viability and its impact on the state-run transport corporation. The initiative, part of the UDF's Indira Guarantees promised during the election campaign, has been welcomed by many commuters as a major welfare measure, while others have raised questions about the additional financial burden on KSRTC and the government. Against this backdrop, the minister shared his views on the scheme, the future of KSRTC and the reforms planned for the transport sector. 

Indira Guarantee a ‘revolutionary change’ 

Indira Guarantee is a revolutionary change in Kerala’s public transport sector.  The government sees it not as a liability but as an opportunity. Alongside attracting more passengers to public transport, it also provides financial benefits. People who shifted to private vehicles will return to public transport.  

The financial benefit women receive through free travel will directly reach households. As fewer private vehicles take to the roads, traffic congestion will ease. Several successful models already exist. Many people have expressed willingness to support a government that offers such a scheme. Several organisations are prepared to provide buses free of cost if they are allowed to display advertisements on them.

The minister said the government was not opposed to e-buses, adding that they were better suited to urban routes. At the same time, he said diesel buses were more suitable for long-distance services.

The purchase of e-buses under the Central government scheme is under consideration. There are also several other options for procuring new buses. These cannot be disclosed at present. Preliminary steps have already begun.

There is no need for concern over the Indira Guarantee. The liability arising from free travel will not affect KSRTC. The government will bear the additional financial burden. Salaries and pensions will not be delayed. Positive changes will be visible within a year.

A way forward

KSRTC can be strengthened through effective financial management. It has legacy loans amounting to ₹2,600 crore, carrying an interest rate of 10.4 per cent. A reduction of 1.5 percentage points in the interest rate could make a significant difference. Commercial complexes, including those in Kozhikode, still have vacant spaces that have not been leased out.

KSRTC can generate additional revenue from its assets. The focus should not be on selling it but on exploring ways to generate income. Not even half of the available opportunities have been utilised. Non-ticket revenue can be increased further, helping the corporation overcome its financial challenges.

No labour exploitation 

The public sector should become a respectable employer. The model followed by SWIFT is a poor example. There is little point in stripping away every characteristic of the public sector merely to make it profitable. The recruitment freeze in KSRTC will be lifted. Employees should receive decent salaries, pensions and service conditions. Permanent employment, fair wages and pensions must be be ensured in the public sector.

KTDFC revival plans

Kerala Transport Development Finance Corporation (KTDFC) has every possibility of becoming a leading financial institution. Several institutions in Kerala offer gold loans. There is no reason why KTDFC cannot explore the same avenue. The time for diversification has already arrived. The institution must regain its lost credibility. It can be transformed into a financial institution with business worth ₹1,000 crore. New projects will be announced soon.