The Kerala Cabinet on Wednesday decided to write off the State Road Transport Corporation (KSRTC)’s liabilities amounting to Rs. 1070 crore.
It also decided to write off loans totalling Rs. 120 crore availed by fishermen on the basis of the recommendation of the Fishermen’s Debt Relief Commission.
Briefing the media on the Cabinet decisions, Chief Minister V. S. Achuthanandan said that loans of Rs. 250.38 crore due from the KSRTC would be converted into equity held by government. The interest and penal interest on loans up to March 2008 would be waived. The arrears of Rs. 622.83 crore payable by the KSRTC as motor vehicle tax would be written off.
The Chief Minister said that he hoped that the KSRTC would improve its functioning, now that it is free of the liabilities.
Mr.Achuthanandan said that the loans of 46804 fishermen availed from primary cooperatives under the Matsyafed would be written off as the first phase of loan waiver for fishermen. This would come to about Rs. 109 crore. Besides, Rs. 11 crore pertaining to housing loans availed from HUDCO by 9891 fishermen would also be written off. The documents pledged by them would be returned.