Can’t afford any more bailouts for KSRTC, says govt
The state government on Thursday informed the Kerala High Court it cannot provide any further bailout to the cash-strapped Kerala State Road Transport Corporation (KSRTC) since the latter’s liabilities had reached a tipping point. The government has taken all possible measures to support the KSRTC to meet the present financial need, it stated. The government filed the affidavit in response to a petition filed by the KSRTC Pensioners’ Organisation alleging non-payment of monthly pension.
The petitioners submitted the pension for October, November and December has not been disbursed yet. Only part payments were made for the months of June and September.The government is not providing sufficient budgetary provisions and financial aid to the KSRTC to meet the liability of disbursing monthly pension, the plea stated. The government said the financial restructuring of the KSRTC loans was being processed by the state government.
It is expected the KSRTC can overcome the financial crisis to clear the monthly pension arrears. The government had provided maximum support to the KSRTC during the crisis. In fact, an additional fund of `60 crore is needed every month to disburse monthly pension. The KSRTC was paying `88 crore a month towards repayment of loans availed from various financial institutions for disbursing the pension.
Owing to the deplorable financial condition, the Corporation could not disburse monthly salary and wages to its employees regularly. Though there is no direct liability on the government regarding the KSRTC monthly retirement compensation, the government is contributing an amount of `30 crore every month — half the amount required to disburse monthly retirement compensation — due to the acute financial crisis. But still, the KSRTC could disburse pension only till July 2017. The corporation could pay pension for the months of May and June partially due to the severe financial crisis.
KSRTC gets L70 crore for paying salaries
T’Puram: Even as the state government informed the Kerala High Court that it cannot take Kerala State Road Transport Corporation’s financial liability, the finance department on Thursday sanctioned Rs 70 crore to pay salaries for KSRTC employees. The finance department approved the request made by KSRTC chairman and managing director A Hemchandran for funds. The salary payment is likely to begin on Friday.
