KSRTC yet to settle Scania bill

October 31, 2016 12:00 am | Updated December 02, 2016 12:34 pm IST - THIRUVANANTHAPURAM:

The Kerala State Road Transport Corporation (KSRTC) is yet to settle the bill towards the purchase of 18 air-conditioned multi-axle Scania Metrolink buses procured from the Swedish automobile giant for Rs.19.55 crore.

The KSRTC has paid only Rs. 2 crore despite the delivery of the buses, sources in the transport utility told The Hindu . Funds allocated for purchasing the buses had been diverted by the management for salary and pension. The luxury buses have turned to be a money-spinner for the utility that is reeling under financial crisis. It is finding it difficult even to pay the fuel bill to Indian Oil Corporation.

The services operated to Bengaluru, Mysuru, Mangaluru, Mookambika, Manipal, and Coimbatore have good patronage and are giving tough competition to private luxury stage carriers. The fleet has fetched almost the money needed for purchase of the 18 buses through ticket sales, the sources said.

Despite the delay in settling the bill, the dealer of the vehicle in Kerala is providing service support and repairs to the buses as per the agreement. The vehicle manufacturer is also learnt to have not pressed for the settlement of the bill as the maiden order from the KSRTC got “overwhelming response” from private luxury fleet operators.

The transport undertaking decided to go for the Scania buses following a three-month free trial on the Thiruvananthapuram-Sulthan Bathery-Bengaluru route and found the price, Rs.99.56 lakh, attractive.

The KSRTC had saved Rs.1.8 crore by purchasing Scania as the competitor Volvo offered buses for Rs.1.11 crore in the bids.

Developed and engineered for Indian conditions, the Transport Department granted 15 exemptions needed to register the buses as stage carriers on April 11 this year. The buses are being operated by the KSRTC under the brand Garuda Maharaja.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.