KSRTC Seems in Financial Crisis

29 August 2013
Thiruvananthapuram

At a time when the State’s finances are in sharp focus, the Kerala State Road Transport Corporation (KSRTC) finds itself in the grip of a financial crisis: badly in need of Rs.112 crore to pay the salary, bonus, and pension of those on the payroll between August 31 and September 12.

The State transport undertaking has been provided a provision of Rs.325 crore in the last budget, but has received only Rs.150 crore so far, official sources told The Hindu on Wednesday. And the KSRTC management is virtually knocking at the door of the Finance Department for the balance.

The KSRTC, which claims to have adopted financial discipline and streamlined its schedules to overcome the losses, will not be able to pay the salary, pension, and bonus before Onam if funds are not released.

The corporation needs Rs.54 crore to pay the salary to its 40,180 staff, Rs.36 crore for disbursal of pension to its 37,000 retired personnel, and Rs.32 crore for bonus. Besides, Rs.70 crore is needed for settling the fuel bill for the 4.3 lakh litres of diesel being purchased daily. For repaying the loan it has taken from the Kerala Transport Development Finance Corporation (KTDFC), it needs Rs.38 crore and another Rs.2 crore for the loan taken from the LIC and HUDCO.

While the monthly expense has mounted to Rs.230 crore, the income from the fleet is only Rs.140 crore, as the daily collection hovers around Rs.4.4 crore on an average. The revenue-expenditure gap has gone up to Rs.90 crore and is alarming, sources said.

Source– http://www.thehindu.com

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