₹2,000 crore electric bus programme in support of World Bank announced in Karnataka Budget 2026

As Karnataka’s State-run road transport corporations continue their transition towards electric buses, Chief Minister Siddaramaiah on Friday announced a ₹2,000-crore electric bus programme with assistance from the World Bank while presenting the State Budget for 2026–27. He said that under the programme, 32 electric bus depots of the Bengaluru Metropolitan Transport Corporation (BMTC) and 62 depots of other State Road Transport Corporations will be developed.

Under the Karnataka Electric Bus Programme (KEBP), the government plans to significantly expand the electric bus network across the State by developing new infrastructure and inducting thousands of buses into the public transport fleet.

In addition, the government plans to induct 4,000 electric buses into the fleets of various State-run transport corporations as part of the initiative to promote sustainable and environmentally friendly public transport. The Chief Minister also announced that 1,000 additional diesel buses will be procured in 2026–27 to further strengthen public transport services.

Arrears

Meanwhile, addressing the long-pending demands of employees of State-run road transport corporations regarding wage revisions and arrears, the Chief Minister blamed the previous BJP government for the delay.

He said the present government had decided to sympathetically consider the demand. “Our government has decided to pay the salary arrears for the period from January 1, 2021, to February 28, 2023. Further, salaries will be revised with effect from April 1, 2025. An amount of ₹1,271 crore will be provided for payment of these arrears,” he added. Transport corporation employees across Karnataka have held several protests in recent months demanding the clearance of arrears and revision of wages.

Transport revenue rises 8.5%

Meanwhile, the Transport Department has also recorded revenue growth, collecting ₹11,630 crore up to February 2026, an increase of 8.5% compared to the previous year. Mr. Siddaramaiah said the department has set a revenue target of ₹15,500 crore for 2026–27.

“Vehicle sales have shown a strong recovery in the current year. Two-wheeler sales have increased by 13%, and car sales have increased by 4% up to January, compared to the corresponding period of the previous year. The revenue collection target from motor vehicles for the financial year 2026–27 is ₹15,500 crore,” he said.