The Kerala Finance Department today agreed to extend Rs 240 crore to the ailing Kerala State Road Transport Corporation [KSRTC] as revival package. This decision was taken in a meeting of the chief minister, finance minister and transport minister at Thiruvananthapuram today. The meeting also decided to introduce additional cess on tickets above Rs 15 in order to mobilise funds for the public sector corporation which is having roughly 41,000 employees and 37,000 pensioners. A part of the cess will be utilized for the group accident insurance of the passengers.
Earlier the government had proposed to extend Rs 240 crore as pension fund, but the finance department did not agree with this, saying that financial assistance to distribute pension could not be allowed. The package was in cold storage for the last two months and disbursement of pension was stalled for the last three months. The urgent meeting of the three ministers has decided to extend the sum as revival and modernization package. KSRTC will submit a detailed package in this regard.
According to the package tickets above Rs 15 will have Rs 1 as cess. Tickets above Rs 25 will attract Rs 2, tickets above Rs 50 attract Rs 3 and Rs 75 and above will have a cess of Rs 4. Tickets above Rs 100 will have Rs 5 as cess. This amount will be utilized for group accident insurance scheme of the passengers. Corporation expects an additional revenue of Rs 12 crore on a monthly basis as cess.
The Corporation which is reeling under heavy financial crisis now incurs a monthly loss of Rs 90 crore. It has an average monthly revenue of Rs 144 crore, but the monthly expenditure amounts to Rs 234 crore. It also needs Rs 486 crore for disbursing pension in 2014-15.
Source: Smart Investor
