Will new loan save KSRTC?

KOZHIKODE: The Kerala State Road Transport Corporation (KSRTC) which was undergoing a total transformation under former managing director Rajamanickam, is again back to anarchy as many programmes he had introduced being dropped midway. The Rs 3,350 crore going to be sourced soon from the consortium of 12 banks may reduce its burden but it would only free the transporting giant from the high interest rate of KTDFC. DC looks into various elements that continue to haunt the transporting giant.

The frequent changes at the helm of the Kerala State Road Transport Corporation (KSRTC) have left the transporting giant in a major crisis with some of the rescue plans reaching no where, forcing it to default on salary and pension payments. That the corporation has seen three changes in as many years at the top has resulted in the corporation dropping some of the rescue plans it had launched.

The Rs 3,350 crore loan to be sourced soon from the consortium of 12 banks would be used to settle the loans taken for high rate of interest from Kerala Transport Development Financial Corporation (KTDFC).  KSRTC had availed loans amounting to Rs 4,264.04 crore from KTDFC with an interest ratye ranging from 7.75 to 16.25 per cent. KSRTC has paid an amount of Rs 3,637.62 crore to principal.   

Though many point out that the rescheduling of debts by taking fresh loans with low interest would help KSRTC tide over the crisis, KSRTC watchers opine that it would help only to save on interest and payment of pensions would continue to be a headache. With five months pension in arrears, KSRTC has to pay in total Rs 280 crore ('56 crore per month) to pensioners.

Transport Employees’ Union (AITUC) state general secretary M.G. Rahul told DC  that  the loan from KTDFC was short term with an interest of 12-14 per cent while the new loan is for 20 years for 9 per cent. Now KSRTC has been paying Rs 3 crore a day towards the loan (Rs 90 crore per month) which can be reduced to Rs 25 crore per month as per the rescheduled scheme, saving Rs 65 crore. “We would be able to pay the salary (Rs 85 crore) by sourcing Rs 20 crore whereas now the entire amount is being mobilised,” he pointed out.

However Mr Rahul is worried about the discrimination towards KSRTC pensioners saying the KSRTC staff also had been serving the state in a better manner than the other service pensioners. “The only way out is that the government takes over the pension of KSRTC staff,” he added. “The suicide of kith and kin of KSRTC staff would continue to rock the state if the government continues with its lethargy.”  

Critics point out that there is no go for KSRTC but to reduce its operational costs. Hundreds of personnel are sitting idly at the chief office, many of them being either union leaders or with the recommendation of leaders. “There are more than 1,000 ‘other-duty’ posts in KSRTC reserved for those who are injured in accidents, aged and those with chronic ailments,” said a source. “However, cronies of union leaders manage to keep those posts for themselves.” While the deserving keep off on leave unable to eke out a living, this influential class sits cozily at these relaxed posts either on recommendations from top or availing false medical certificates.  

Many point out that the derailing of computerisation programme in KSRTC has resulted in keeping the accounts in total disarray. Though the three chartered accountants appointed recently tried to make things on right track at the accounts department, they accepted defeat, it is learnt.

There are charges that the trade unions are also responsible for the chronic ills that have plagued the corporation.  Among the 40,000 odd KSRTC employees, KSRTC Employees’ Association affiliated to CITU has a share of 48 per cent.