Kerala To Allow Private Sponsorship Of State Buses To Boost Fleet

In a first, Kerala Transport Minister CP John has announced plans for a new sponsorship model that would allow individuals, companies and other entities to sponsor KSRTC buses while displaying their own branding on the vehicles, as the government looks for innovative ways to strengthen the financially stressed state-run transport corporation.

The minister said a draft proposal is being prepared, and the modalities of the scheme are currently being worked out.

"Branding opportunity is being transformed. We are exploring a model where interested individuals and organisations can sponsor buses for KSRTC. They will be able to display their branding on these buses. Detailed guidelines will be announced later," he said.

According to John, the initiative aims to increase the fleet strength of KSRTC and improve services without placing additional financial strain on the corporation.

The announcement comes at a time when KSRTC continues to face a severe financial crisis.

According to the state government's recent white paper on public sector enterprises, the corporation recorded a loss of Rs 1,580.38 crore in 2024-25, taking its accumulated losses to Rs 20,961.36 crore. The report noted that KSRTC's net worth has been completely eroded, standing at minus Rs 19,820.63 crore as of March 2025.

The white paper also identified KSRTC as the single largest defaulter among Kerala's public sector undertakings in repaying government loans, with outstanding principal and interest dues of Rs 11,678.64 crore. The report concluded that the corporation survives largely on continuous budgetary support from the state government and is unable to independently invest in fleet modernisation.

Against this backdrop, John said the government would release a dedicated white paper on KSRTC within the next three months, outlining a roadmap for the corporation's revival.

The minister also elaborated on the government's recently announced Priyadarshini Scheme, under which women will be allowed to travel free of cost on ordinary KSRTC services across Kerala.

John clarified that the scheme is applicable only to ordinary buses operated by KSRTC. He said around 3,125 ordinary buses currently ply across the state and that all women, irrespective of whether they are residents of Kerala or from outside the state, will be eligible to avail of the benefit.

He said that the expenditure arising from the free-travel scheme would not be borne by KSRTC. Instead, the state government would provide the required funds as a grant.

John highlighted the ageing condition of the corporation's fleet, stating that nearly 1,500 KSRTC buses are old and nearing the end of their operational life. Efforts are underway to induct new vehicles and modernise the fleet, he said.

John further announced plans to expand the Grama Vandi initiative, a rural connectivity scheme launched by the previous government to improve public transport access in villages. He noted that only 58 buses are currently operating under the scheme and said the government intends to increase the number of services to strengthen connectivity in underserved rural areas.

John said all these measures, including fleet expansion, rural connectivity improvements and the women's free-travel programme, form part of a broader effort to revive KSRTC and restore its role as Kerala's primary public transport provider.