Smart Bus Service bleeding Rs 20 lakh daily in J&K, Govt admits in Assembly
Srinagar, Oct 27: The Jammu and Kashmir government on Monday admitted that the ambitious Smart Bus service launched under the Smart City Mission is suffering massive financial losses, with nearly Rs 20 lakh being lost every single day on its operation in Srinagar and Jammu divisions.
The disclosure came after Mian Mehar Ali, MLA Kangan, sought details of the project’s financial performance during the ongoing Assembly session.
In a written reply, the government revealed that the electric bus service, introduced to promote eco-friendly public transport, is running at a steep loss. In the Kashmir Division, the operational cost per kilometre stands at Rs 60.74, while the revenue generated per kilometre is just Rs 12 — leaving a loss of Rs 48.74 per km and a total daily deficit of Rs 9.74 lakh.
In Jammu Division, the situation is no better. The running cost there is Rs 62.66 per km, but the revenue is only Rs10.01, translating into a loss of Rs 52.65 per km and a daily shortfall of around Rs 10 lakh. Together, both divisions are incurring a cumulative daily loss of Rs 19.75 lakh.
The figures have raised serious questions about the project’s long-term sustainability. The government, however, defended the initiative, saying it was part of a broader effort to modernize public transport, cut pollution, and improve passenger comfort under the Smart City framework.
Officials said 98 electric buses are currently operational in Srinagar on routes such as Parimpora–Harwan, TRC–Nasrullah Pora, Jehangir Chowk–Hazratbal, Pantha Chowk–Narbal, and TRC–Budgam Railway Station. In Ganderbal district, 12 buses ply on routes like Batamaloo–Ganderbal–Dal Gate, catering to a smaller commuter base.
Despite the mounting losses, the government clarified that there is no proposal at present to extend the service to Kangan or other new routes. “The focus is on stabilsing operations and optimizing costs before expansion,” officials said.
Meanwhile, private bus and mini-bus operators have expressed resentment, alleging that free or heavily subsidised e-bus rides have hit their earnings. “Since Smart Buses started, our income has dropped drastically. The government must find a way to address this imbalance,” said several operators.
The issue also comes against the backdrop of the Chief Minister’s recent announcement of the Zero Ticket Travel scheme — a Budget initiative allowing women to travel free in Smart City e-buses and JKSTRC buses across Jammu and Kashmir.
While the scheme has been widely appreciated for promoting women’s safety and mobility, it has further strained the government’s finances. Experts warn that the subsidy burden could push the administration to raise fares on other modes of public transport, including passenger buses, taxis, and autorickshaws.
