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KSRTC seeks Rs 1,000 cr aid from centre

An article from Deccan Chronicle.

The ailing Kerala State Road Transport Corporation (KSRTC) has sought a `1,000-crore one-time bailout package from the Centre.

A delegation led by Transport minister V.S. Shiva Kumar met visiting Planning Commission deputy chairman Montek Singh Ahluwalia here on Monday and pressed the case. “Since the Centre cannot extend direct financial aid to the corporation, we sought Rs 420 crore as subsidy and the remaining by way of sovereign guarantee,” an official told DC.

He said if the package is approved, the corporation would be able to have autonomy in its functioning.

The corporation is suffering a monthly loss of nearly Rs 40 crore, despite registering a substantial increase in its collection — of the order of Rs 115 crore.

Out of this, pension payments alone amount to Rs 26 crore while the loan repayment touches Rs 25 crore.

The corporation has also asked the state government to convert the `500 crore loan outstanding as equity shares and write off the remaining dues.

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