The circular services are conducted at intervals of 15 minutes during peak hours and 30 minutes during non-peak hours.
A ministerial-level talk held last night in the Kerala capital could not reach a settlement over the strike announced earlier by the KSRTC trade unions.
The Bus Owners' Committee is demanding that the minimum charge be increased to Rs 12, the minimum fare for students be hiked to Rs 6, and Rs 1 be charged for every additional kilometre.
The monthly aide given by the government for disbursing salary would be increased from Rs 20 crore to Rs 35 crore.
The mass termination on October 3 was the second such event this year. On July 1, empanelled drivers were asked to quit their jobs on the basis of an April 8 order of the High Court.
The policy focuses on transparency and corruption-free implementation of projects.