It needs ₹100 crore a month from govt. to pay salaries
Struggling to remain afloat, the cash-strapped Kerala State Road Transport Corporation (KSRTC) is looking at tough measures to pull through the crisis.
The KSRTC will recommend the government to either lay off excess personnel or place them on leave extending from one to five years on 50% salaries as was done by the Madhya Pradesh government, KSRTC chairman and managing director Biju Prabhakar said on Thursday.
The KSRTC is in no position to move forward without cutting costs, he informed employees unions of the corporation at a meeting.
Calling for fiscal discipline, Mr. Prabhakar pointed out that the KSRTC is heavily dependent on the State government for paying the monthly salaries.
Only 3,300 buses of the 4,800-strong fleet are plying services at present. Every month, the corporation requires nearly ₹100 crore from the State government to pay the salaries of the employees.
Neck-deep in a financial crisis, the KSRTC management has also asked units to discontinue loss-making services.
In June, the KSRTC’s revenue stood at ₹21.26 crore and the diesel expenses at ₹17.39 crore. In July this was ₹51.04 crore and ₹ 43.7 crore respectively. In August, the revenue stood at ₹75.71 crore and the diesel bill, at ₹53.33 crore.
Although demands are pouring in for starting new bus services, the fact remains that many services are plying without passengers during the afternoon hours. The KSRTC has no option but to discontinue loss-making services to survive, Mr. Prabhakar said.