To tide over a financial crisis, KSRTC has taken a loan of Rs 1,300 crore by mortgaging assets, including its headquarters. The cabinet has approved the biggest loan deal in the history of KSRTC. The loan will be given by a consortium of nine banks, including SBT. The first tranche of Rs 800 crore has been handed over to KSRTC. Ahead of giving the loan, SBI Capital Markets Limited had assessed 45 assets of KSRTC. The loan was granted against 25 of those assets. The loan was taken to repay debt and for renovation.
Mortgaged assets (including buildings)
Transport Bhavan (headquarters) in East Fort; city garage; Vizhinjam office; Neyyattinkara depot;two properties in Pappanamcode; depots in Karunagappally, Chathannoor, Kollam, Chengannur, Mavelikkara, Kottayam, Pala, Thevara, Aluva, Payyannur, Pathanamthitta, Thodupuzha, Munnar, Adoor and Parassala; the property in Putharikandam, some plots in Thycaud village, and the and the staff training centre in Manakkad.
The procedures were completed at the sub-registrar office in Thiruvananthapuram. KSRTC officials hope that the loan will help to repay the debt of KTDFC, which pushed KSRTC into a financial crunch. Compared with KTDFC, interest rate on bank loans is cheaper. KSRTC officials told Medias that KSRTC would be able to save about Rs 60 crore a month on interest.
As per October 2015 data, KSRTC has to give the government Rs 1,471.56 crore as loan repayment. Of this, Rs 1,090.75 crore was converted into the government’s equity in KSRTC. The remaining liability is Rs 380.81 crore. KSRTC has assets worth Rs 3,674.13 crore.
News Source : Manorama Online
