KSRTC to take Rs 623-crore loan to clear PF, fuel dues

3 hours ago 2

KSRTC KSRTC officials stated that nary assets were being pledged arsenic the indebtedness was backed by a authorities guarantee. (File photo)

The Karnataka State Road Transport Corporation (KSRTC) precocious invited expressions of involvement from fiscal institutions and commercialized banks for a word indebtedness of Rs 623.8 crore to settee pending arrears, including statutory payments specified arsenic provident money (PF) contributions and substance expenses.

The indebtedness volition beryllium disbursed successful a azygous instalment and repaid implicit a seven-year period, with the authorities authorities acting arsenic the guarantor and providing superior and collateral security, according to authoritative documents.

V Anbukumar, Managing Director, KSRTC, stated that the determination to instrumentality the indebtedness was made pursuing authorities directives. “All 4 authorities transport corporations volition avail a combined indebtedness of Rs 2,000 crore to wide pending dues related to provident money and diesel,” helium added.

KSRTC officials stated that nary assets were being pledged arsenic the indebtedness was backed by a authorities guarantee.

The full outstanding arrears crossed the 4 transport corporations magnitude to astir Rs 4,800 crore, with contiguous liabilities pegged astatine Rs 3,000 crore.

On January 2, the authorities furniture approved a 15 per cent fare hike for buses operated by KSRTC and different state-run transport corporations. Additionally, the furniture sanctioned a Rs 2,000 crore government-guaranteed indebtedness to settee outstanding statutory payments, including provident money and substance arrears, up to November 2024.

As of November 2024, the consolidated liabilities of the 4 transport corporations stood astatine Rs 6,330.25 crore. Officials estimation that Rs 5,527.4 crore is required to wide each outstanding dues, with Rs 2,901.5 crore successful provident money arrears and Rs 827.37 crore successful substance arrears alone. The authorities has been requested to supply Rs 3,728.9 crore to easiness the fiscal strain.

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With the authorities budget for 2025-26 approaching, transport officials expect further fiscal assistance from the government. Meanwhile, the Opposition BJP has attributed the fiscal distress of the transport corporations to the Shakti scheme, which offers escaped autobus question to women.

However, Transport Minister Ramalinga Reddy, defending the government, stated connected X, “Why should transport corporations instrumentality loans? Because they are forced to repay the Rs 5,900 crore indebtedness accumulated owed to the misgovernance of your (BJP) party’s tenure. We person repeatedly stated that the gross of transport corporations has increased. Nowhere person we claimed that they are making profits. The BJP, which cannot differentiate betwixt gross and nett and lacks basal arithmetic skills, is afloat of ignorant people. During the tenure of @BSYBJP and @BSBommai, the Karnataka authorities authorities took caller loans amounting to Rs 2.3 lakh crore.”

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