The revival package prepared by the Kerala State Road Transport Corporation (KSRTC) to overcome its financial crisis has failed to get Cabinet approval.
The Finance Department is learnt to have raised objections to the proposed pension scheme, prompting the Cabinet decision on Wednesday night.
Chief Minister Oommen Chandy, Finance Minister K.M. Mani, Transport Minister Thiruvanchoor Radhakrishnan, and top officials of the KSRTC, Transport, and Finance Departments had discussed the package ahead of the Cabinet meeting.
Instead of the pension scheme worked out with Life Insurance Corporation of India, sources said a diluted pension plan was presented at the meeting. That was opposed by the Finance Department as the exchequer will have to pump in over Rs.200 crore and increase the bus fares.
The Cabinet announced another Rs.50 crore financial assistance to the KSRTC to clear the pension arrears. The KSRTC needs Rs.62 crore for settling the pension arrears for April (Rs.25 crore) and May (Rs.37 crore). Later, the Chief Minister told mediapersons that the Cabinet has given the nod to the Transport Minister to go ahead with the revival package. A decision on the revival package will be taken at the next meeting of the Cabinet after the Minister holds talks with the unions and employees, he said.
The Hindu
