The cash-strapped Kerala State Road Transport Corporation (KSRTC) has got a loan of Rs. 100 crore from Canara Bank to pay the salary and wages of the employees and empanelled staff for this month and two months pension.
However, the KSRTC will only get Rs. 50 crore as the first instalment on Wednesday from the bank through the Kerala Transport Development Finance Corporation.
The formalities of pledging the Thottilpalam and Vadakara depots of the KSRTC to get the loan has commenced and will be completed on Wednesday. Once this is completed, the employees will be able to draw salary from the banks and ATMs.
The consortium of banks that had entered into an agreement with the KSRTC to take over the loan from KTDFC has agreed to pay another Rs.20 crore on December 16, official sources said. With this, the KSRTC will be able to give the salary and wages to the employees and pension to the retirees in instalments.
The salary will be disbursed in instalments in view of the curbs on withdrawing cash from banks and ATMs, which will give a breather to the KSRTC to manage the remaining funds.
The KSRTC needs Rs.70 crore for the salary of the employees and Rs. 30 crore to pay the pensioners and the empanelled staff. The transport utility was also not able to pay the pension to the retirees last month.