Denying support from the exchequer for creating a pension fund for the Kerala State Road Transport Corporation, the Finance Department on Thursday asked the transport utility to find its own source for paying pension to the retirees.
At the intervention of Chief Minister Oommen Chandy, the Finance Department agreed to provide a development fund to the KSRTC to tide over the financial crisis and pay the pension that is due for the last three months to the 37,000 retirees.
The breakthrough was achieved at a meeting convened by Mr. Chandy at the Secretariat, which was attended by Finance Minister K.M. Mani and Transport Minister Thiruvanchoor Radhakrishnan.
From Plan fundOfficial sources said the Finance Department had agreed to provide money from the Plan fund for the development fund and make it “flexible” for the time-being so that it could be diverted for paying pension.
The revival package worked out by the KSRTC to overcome the crisis got the nod at the meeting. Additional revenue mobilisation, including a ticket cess, and insurance coverage for commuters were approved.
The KSRTC had also been asked to take steps to bring down the loan taken from the Kerala Transport Development Finance Corporation (KTDFC) by opting for low-interest loans from other lending agencies.
Steps to break evenThe transport utility was asked to take steps to achieve break-even in the next one year. It had also been asked to bring down the bus-crew ratio.
The KSRTC had been asked to submit proposals to this effect to the Finance Department immediately for clearance, the sources said.
Additional Chief Secretary, Finance, V. Somasundaram, Principal Secretary, Transport, V.M. Gopala Menon, and senior officials attended the meeting.
