Kerala State Road Transport Corporation (KSRTC) in Fuel Crisis

18 Jan 2013
Thiruvananthapuram

The decision of oil companies to sell high speed diesel (HSD) to bulk consumers at market rates has plunged the Kerala State Road Transport Corporation (KSRTC) into a severe financial crisis. The 14,000-odd private buses operating in the State, the KSRTC’s competitors, will not be affected by the decision of the Petroleum Ministry as they do not fall in the category of bulk consumers.

The loss-making corporation, which has not been able to pay the monthly pension of 37,000 retired employees till date due to a financial crisis, will now has to find an additional Rs.15 crore for the fuel bill every month. The KSRTC owes Rs.11 crore to Indian Oil Corporation (IOC) and Hindustan Petroleum (HP), two State-owned fuel majors, towards the fuel bill. The KSRTC has exceeded the credit limit of Rs.7 crore fixed by IOC and HP.

“The corporation urgently needs Rs.35 crore to pay the pension to its retired employees. The only way forward is that the government should extend financial support to pay the additional expenses to be incurred towards the fuel bill,’ sources said.

Source-www.thehindu.com/news/states/kerala/oil-firms-fuel-a-crisis-in-ksrtc/article4319968.ece

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