Business Standard

Cash-strapped MSRTC seeks Rs 3,600 cr govt funds to pay salaries

The Maharashtra State Road Transport Corporation has sought Rs 3,600 cr from the state government for payment of salaries and other essential expenses, Transport Minister Anil Parab said on Friday.

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Press Trust of India Mumbai
The Maharashtra State Road

Transport Corporation has sought Rs 3,600 crore from the state government for payment of salaries and other essential expenses, Transport Minister Anil Parab said on Friday.
The state-run corporation has not paid the salaries of its employees for the last three months, and to pay them was its priority, the minister said.
Parab, who is also the chairman of the MSRTC, told reporters that the corporation was trying to raise money through external means too.
"Paying salaries before Diwali is the current priority and we will do it, we would borrow money if needed," he said.
"As currently even the earnings of the state government have gone down, instead of depending solely on government, the corporation is exploring other options too," Parab said.
Asked about reports that the MSRTC was going to mortgage some of its properties for obtaining a loan, Parab said it could take a loan but it would not be a mortgage.
"Mortgaging properties is different," he said.
The MSRTC needs Rs 292 crore per month for paying salaries. The cumulative losses of the transport body have ballooned to over Rs 5,500 crore, he said.
The MSRTC used to earn Rs 22 crore every day before the coronavirus outbreak, but presently its revenue from passenger services has fallen to barely Rs 5-6 crore, he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Oct 30 2020 | 9:22 PM IST

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