The Kerala government has announced plans to introduce a first-of-its-kind sponsorship model for the Kerala State Road Transport Corporation (KSRTC), allowing individuals, companies and organisations to sponsor buses in exchange for branding opportunities. Transport Minister CP John said a draft proposal is currently being prepared, with detailed guidelines expected to be released after consultations and final approval. The initiative is aimed at strengthening the state-run transport corporation without placing additional financial pressure on its already strained resources.
Under the proposed model, sponsors will be permitted to display their branding on KSRTC buses while contributing to the acquisition and operation of vehicles. According to the minister, the scheme is part of a broader effort to modernise public transport services and increase the corporation's fleet strength. The government believes the sponsorship programme could create an alternative source of support for KSRTC while maintaining public ownership and operational control of the buses.
The proposal comes at a time when KSRTC is facing a severe financial crisis. The Kerala government's recent white paper on public sector enterprises revealed that the corporation incurred a loss of Rs 1,580.38 crore during the 2024-25 financial year. As a result, its accumulated losses have risen to Rs 20,961.36 crore. The report also noted that the corporation's net worth stood at a negative Rs 19,820.63 crore as of March 2025, highlighting the scale of the financial challenges confronting the transport utility.
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The white paper further identified KSRTC as the largest defaulter among Kerala's public sector undertakings in repaying government loans. Outstanding principal and interest liabilities have reached Rs 11,678.64 crore. The report concluded that the corporation remains heavily dependent on budgetary support from the state government and currently lacks the financial capacity to independently invest in fleet replacement and modernisation programmes.
Alongside the sponsorship initiative, the government is moving ahead with the Priyadarshini Scheme, which will provide free travel for women on ordinary KSRTC bus services across Kerala. Minister John clarified that the benefit will apply to all women passengers, including visitors from outside the state, travelling on the corporation's 3,125 ordinary buses. The state government will reimburse the cost of the scheme through grants, ensuring that the financial burden does not fall on KSRTC.
The minister also announced plans to release a dedicated white paper on KSRTC within the next three months, outlining a long-term revival strategy. He noted that nearly 1,500 buses in the corporation's fleet are ageing and nearing the end of their service life, making fleet renewal a priority. In addition, the government plans to expand the Grama Vandi rural transport programme, which currently operates 58 buses, as part of a wider effort to improve connectivity, modernise services and restore KSRTC's position as Kerala's primary public transport provider.
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