Kerala’s private bus sector will receive government support, with the state open to taking private buses on lease and operating them through the Kerala State Road Transport Corporation (KSRTC), Transport Minister C P John told the Assembly on Friday. The proposal is aimed at sustaining private operators and ensuring that public transport services are not weakened by competition between private buses and KSRTC.
Replying to a calling attention motion raised by MLA N K Akbar, John said the government had no intention of abandoning private bus operators. He said the financial crisis in the sector began during the Covid-19 pandemic and could not be attributed only to the Priyadarshini free travel scheme.
According to the minister, the number of private buses in Kerala fell from 19,000 to 13,000 during the Covid period. He said taxation was a major issue at the time and that the government had reduced taxes by 50% after assuming office.
John acknowledged that women passengers choosing the Priyadarshini scheme had contributed to the difficulties faced by private bus operators, but said it was not the sole cause of the sector’s decline. The scheme was also discussed in the context of questions over how free travel arrangements had affected the operation of public bus services.
Under the proposed wet-lease arrangement, KSRTC would take private buses on lease, operate the services and pay the operators a fixed rate per kilometre. The minister said the model could allow private buses to remain part of the state’s public transport network while placing their operations within a system managed by KSRTC.
Some private bus operators have raised concerns about delays in receiving payments from KSRTC. John assured them that they need not worry about the issue, without providing a specific payment schedule in the Assembly response.
The minister also referred to the Padmakumar commission, which studied the problems faced by the private bus sector. The government expects implementation of the commission’s recommendations to help address the issues confronting operators, although the minister did not set out a timeline for that process.
The government’s position is that Kerala’s public transport system needs both private operators and KSRTC. “The public transport system in Keralam can move forward strongly only by accommodating the private bus sector as well,” John said.
The minister separately denied an opposition allegation that ordinary KSRTC buses had been converted into City Fast services under the pretext of introducing free travel for women. He said he did not know how the misunderstanding had arisen. The next steps will depend on the implementation of the Padmakumar commission’s recommendations and the government’s decision on the proposed wet-lease arrangement.