)
The state finance department today agreed to extend Rs 240 crore to the ailing Kerala State Road Transport Corporation (KSRTC) as a revival package. The decision was taken in a meeting of the chief minister, finance minister and transport minister at Thiruvananthapuram today. It also decided to introduce additional cess on tickets above Rs 15 in order to mobilise funds for the public sector corporation, which is having roughly 41,000 employees and 37,000 pensioners. A part of the cess will be utilised for the group accident insurance of the passengers.
Earlier the government had proposed to extend Rs 240 crore as pension fund, but the finance department did not agree saying financial assistance to distribute pension could not be allowed. The package had been in cold storage for the last two months and disbursement of pension had been stalled for the last three months. Today's meeting decided to extend the sum as a revival and modernisation package. The KSRTC would submit a detailed package in this regard.
According to the package, tickets above Rs 15 will have Re 1 as cess. Tickets above Rs 25 will attract Rs 2, above Rs 50 attract Rs 3 and Rs 75 and above will have a cess of Rs 4. Tickets above Rs 100 will have Rs 5 as cess. The corporation expects an additional revenue of Rs 12 crore on a monthly basis as cess.
The KSRTC, which is reeling under a heavy financial crisis now incurs a monthly loss of Rs 90 crore. It has an average monthly revenue of Rs 144 crore, but the monthly expenditure amounts to Rs 234 crore. It also needs Rs 486 crore for disbursing pension in 2014-15.
