Transport Minister C.P. John told the Keralam Assembly on Friday that the Kerala State Road Transport Corporation (KSRTC) was ready to operate private buses on a wet lease basis at fixed rates.

Responding to a calling attention motion moved by Communist Party of India (Marxist) [CPI(M)] MLA N.K. Akbar on the crisis facing the private bus sector in the State, he said the KSRTC and private bus operators could function in a complementary manner to improve public transport rather than be seen as forces working at cross purposes.

Mr. Akbar said private bus operators had earlier proposed a wet lease rate of ₹55 per kilometre, under which they would take care of diesel and maintenance costs, while the revenue from ticket sales would go to the KSRTC. The Minister said the terms of the arrangement and the rates would have to be negotiated.

Mr. Akbar said the private bus sector, which had been facing a severe crisis since the COVID-19 pandemic, had suffered further losses following the implementation of the Priyadarshini scheme, which offers free travel for women on KSRTC buses. He said the scheme had been implemented without scientific studies, leading to a fall in the daily passenger count on private buses from 1,300–1,500 to around 600.

“Around 60,000 families, including those of bus owners and employees, depend on the private bus sector. Even before the Priyadarshini scheme was implemented, they were facing a crisis due to rising diesel prices. A significant portion of their daily earnings goes towards fuel. The monthly loan repayment for a bus costing ₹40-46 lakh is ₹90,000. Many owners are facing the prospect of suspending services or cutting down on staff,” he said.

Mr. John said the government was “aware of” the crisis facing the private bus sector, but it was wrong to attribute it to the Priyadarshini scheme.

“The number of private buses has been falling considerably since at least 2001. One of the major issues they faced was the high tax rate. In the interim Budget, the tax rate was cut by 50% to address the crisis. In the aftermath of COVID-19, operators struggled to run services, while buses that remained idle developed major problems. During the 2020-2026 period, the number of private buses fell by 16.7%,” he said.

Published – October 16, 2026 02:02 pm IST