The Kerala State government has initiated free travel scheme for women on its ordinary buses, set to begin on June 15 . While move has garnered support from many women, it raises significant financial concerns for the cash-strapped Kerala State Road Transport Corporation (KSRTC).
Women in Kerala are expected to benefit substantially from this initiative, potentially saving around ₹1,000 a month on transportation costs. Githa Hari,a private sector employee in Thiruvananthapuram, expressed optimism about scheme,stating it could help her save ₹900 monthly,which she could allocate to other family expenses. “Although the first phase covers only ordinary buses,we are hopeful that scheme will be extended in phases to city fast, fast,and superfast services,” she added.
Economist Prof. K.P. Kannan noted that the scheme could significantly enhance women's mobility in public spaces, particularly benefiting those from lower-income backgrounds and the self-employed . He argued that the money saved on travel could stimulate economic activity as it would likely be spent in other sectors. However, he cautioned about the financial implications of implementing such a scheme without overburdening the already strained state finances.
KSRTC's financial health is precarious,with estimates indicating a revenue loss of approximately ₹112 crore if scheme is expanded to all bus categories. If limited to ordinary services, the loss would still be substantial at around ₹57 crore within the first 90 days. Currently, KSRTC operates about 4,700 buses, with nearly 3,000 classified as ordinary services. Many of these buses are over 15 years old, surpassing the age limit set by Centre's vehicle scrappage policy.
The previous administration left behind significant loan liabilities,prompting calls for the new government to focus on rationalizing public expenditure and enhancing tax collection. These measures are deemed essential for navigating the financial crisis facing state .
Private bus operators have voiced strong opposition to the scheme, warning it could jeopardize the viability of Kerala's private bus industry, which consists of around 9,000 to 10,000 buses. P. Gopinathan,General Secretary of the All Kerala Bus Operators’ Organisation,expressed concern that initiative would draw women passengers away from private services, potentially leading to widespread closures of private operators,especially in southern and central Kerala, where KSRTC buses are prevalent . Women make up nearly 60% of bus passengers in these regions.
The initial phase of the free travel scheme will only apply to ordinary buses for the first 100 days. After this period, the government is considering extending the benefits to faster services, including city fast and superfast buses. This decision will be influenced by the scheme's impact on both KSRTC's finances and the private bus sector.
