Private bus to get 503 new routes in Kerala—how will it impact KSRTC and your daily commute?

Thiruvananthapuram: Kerala government is set to introduce major changes in its public transport sector, with 503 routes being allocated to private buses, Transport Minister KB Ganesh Kumar announced. The state-run Kerala State Road Transport Corporation (KSRTC) will also receive a fleet of new buses from April, including high-tech air-conditioned and sleeper coaches for inter-state travel, particularly to Bengaluru. Additionally, smaller buses will be introduced for short-distance routes.

The minister said that there are several routes in Kerala where neither government nor private bus services ply. "To address this, the government has mapped out around 1,100 new routes, of which 503 will be assigned to private operators. Unlike the existing permit system, these routes will operate under a licensing framework to eliminate unhealthy competition," he said.

Under the new system, only buses with valid licenses will be allowed on designated routes. The minister explained that this move aims to prevent excessive competition on high-collection routes. The transport minister highlighted the a major decline in the number of private buses in Kerala. He said that in 2001, the state had 24,000 private buses, which increased to 28,000 by 2006. However, the number has now fallen to just 7,000.

"The discontinuation of a single private bus service leads to substantial financial losses for the government, including an annual tax revenue loss of ₹1 lakh per bus. Each bus also employs at least three people and consumes 50 to 100 litres of diesel daily, contributing to tax collection. The reduction in private bus services has directly impacted the state's revenue," he said. 

"The transport sector faces two types of competition—one among private bus operators and another between KSRTC and private buses," he remarked. 

The minister stressed that KSRTC should focus on unserved routes rather than competing with private buses on profitable routes.

"The licensing system was initially implemented in Thiruvananthapuram, where permission was granted for 103 buses. Even today, only these approved 103 buses are operational on those routes," he added.