The ailing Kerala State Road Transport Corporation (KSRTC) has approached a consortium of banks led by the State Bank of India (SBI) for a ₹3,000-crore long-term loan to restructure its ₹2,996-crore loan liability and to overcome the crisis.
Through the restructuring of the ₹2,996-crore loan taken from the consortium of banks, Kerala Transport Development Finance Corporation, District Cooperative Banks and other financial institutions over the years, the KSRTC is aiming to bring down the present daily loan repayment of loan of over ₹3 crore to ₹1 crore.
The enhanced cash flow is to be used by the KSRTC for paying salary and allowances to the 36,000-odd employees, pension to the 38,000 retirees, footing the fuel bill and honouring the commitments and for fleet expansion. SBI Capital Markets Ltd (SBI CAP) has been appointed by the KSRTC for due diligence and the project is in the submission stage, Chairman and Managing Director M. G. Rajamanickam told The Hindu on Wednesday.
“Saving ₹2 crore daily from the loan repayment will help us generate ₹60 crore monthly and it will be 90% of the monthly salary bill of the employees,” the CMD said.
The enhanced cash flow will give enough room for the management to break even and overcome the present crisis. Transport Minister Thomas Chandy, Additional Chief Secretary, Finance, K. M. Abraham and K. R. Jyothilal, Secretary, Transport, are working overtime to obtain the ₹3,000-crore loan.
