Requires Rs. 450 cr. to clear salary arrears of its staff
Government owes Rs. 613.93 crore to RTC towards reimbursement of various concessions
Amount to be adjusted against MV tax that the corporation has to pay to the government
HYDERABAD: The Andhra Pradesh State Road Transport Corporation (APSRTC) has been granted permission from the State government to borrow Rs. 200 crore each in two tranches with the first one this month and the other in December this year.
A senior official of the corporation said the Andhra Pradesh State Road Transport Corporation required Rs. 450 crore to clear salary arrears of its employees and hence sought permission to borrow the money from banks with the State government as a guarantor.
Reimbursement of sops
SThe government owes Rs. 613.93 crore to the corporation towards reimbursement of various concessions granted to different categories of passengers over the past three years.
The amount is to be adjusted against the motor vehicle tax that the corporation has to pay to the government.
The State government would stand guarantee for the loan and service it.
The corporation would borrow Rs. 200 crore in the first phase from Bank of India at an interest rate of 8.25 per cent.