RTC in financial crisis; dues cross Rs 234 crore

Kochi: Despite the increase in daily revenue collection, the KSRTC is facing one of its worst financial crises as the total outstanding dues have reached Rs 234.80 crore, including Rs 56.90 crore towards settling the pending employee benefits.

KSRTC managing director M.P. Dinesh has urged the state government to allocate Rs 100 crore to meet the urgent commitments.

“The monthly PF payment of employees or the amount recovered from the salary of staff towards LIC, employees’ co-operative societies and the like are not being remitted for the last several months,” said a senior KSRTC official.

Besides the dues with regard to employee benefits, the corporation has to settle Rs 21.60 crore towards purchase of tyres and spare parts, Rs 77.6 crore outstanding dues as toll fees, Rs 18.5 crore towards purchase of buses, GST dues of Rs 9 crore and Rs 13 crore to be paid to various contractors for carrying out civil works, among others.

In a letter to Transport Minister A.K. Saseendran, the corporation MD asked the state government to restore the Rs 47-crore deposited by the latter in the treasury to help the corporation meet pension payment dues.

He also sought the intervention of the government in reducing the interest rate hiked by the bankers’ consortium from the current 9.55 to 9.20  per cent.

He pointed out that the corporation had taken various revival measures and that their results will reflect only in another six months. Already, the daily average revenue collection has increased from Rs 6.22 crore in 2018-19 to Rs 6.40 crore during the first three months of 2019-10, he said