The government has again come to the rescue of the ailing Kerala State Road Transport Corporation (KSRTC) by announcing ₹1,000 crore for the next fiscal to overcome revenue-expenditure gap, funds from the KIIFB to purchase 2,000 buses, steps to clear pension arrears by March this year, and a new pension scheme.
Announcing a slew of measures in the budget to overcome the financial crisis that has gripped the transport utility, Finance Minister T.M. Thomas Isaac said 2018-19 would be the year of revival for the KSRTC. Steps had been taken to secure a ₹3,500-crore long-term loan at reduced interest rate from a consortium of banks led by the State Bank of India.
Dr. Isaac said revamp of the top management was on and soon the KSRTC would be restructured into three profit centres.
The first batch of 1,000 buses procured using KIIFB funds would join the fleet soon.
The Alappuzha bus station would be developed as part of the mobility hub and the same revenue model would be adopted for developing the Ernakulam and Kayamkulam stations.
Pointing out that the government had given ₹1,507 crore to the KSRTC since it came to power, the Minister said the aim of the government was to enable the corporation pay salary and pension without fail without taking loans and provide good service to commuters.
Steps had been taken to achieve the national average of fleet utilisation, daily income, mileage, breakdown rate, turnaround rate, and accident rate by the year 2019-20.
He said fare revision on the basis of the Ramachandran Commission recommendations was under the consideration of the government.
As part of the proposed revival package, Dr. Isaac announced a scheme to ensure payment of pension every month to the retirees.
A consortium of district cooperative banks and primary cooperative banks would pay the pension arrears and monthly pension.
The government would repay the loan with interest within six months and the repayment would be from the ₹1,000 crore announced.
