The cash-strapped Kerala State Road Transport Corporation’s (KSRTC) attempt to raise a working capital of ₹100 crore by repledging the buses procured under KSRTC-SWIFT, a legal entity formed for the centralised control of long-distance buses under the corporation, is yet to evoke any major response from the industry.
Speaking to The Hindu, a senior Transport department officer said the move for repledging the buses began around six months ago, but it is yet to yield any results mainly due to the poor track record of the corporation. Raising a working capital of ₹100-150 crore would help the corporation tide over the present crisis. If the corporation is able to raise ₹100 crore by repledging buses worth ₹280 crore, the funds can be kept as a reserve or buffer.
The salaries of employees, which would come up to about ₹80 crore, can be paid from this reserve every month without waiting for the assured financial assistance from the Finance department. The funds can also be kept intact when the State releases its monthly aid to the corporation, said the officer.
“We have been holding discussions with leading banks in the country for quite some time. The corporation is hopeful of clinching a deal once the interest rate for the loan is fixed. Also, the banks will take a call on the repaying capacity of the KSRTC before processing the loan request,” said the officer.
The corporation cannot pledge its assets as it had already availed of a loan from a consortium of banks, which has been claiming a monthly a sum of ₹30 crore from the escrow account of the KSRTC as part of repayment instalment.
Further, financial bodies such as the Kerala Infrastructure Investment Fund Board (KIIFB) are not ready to offer loan to the KSRTC due to its poor track record. This has forced the corporation to repledge the buses of SWIFT. The corporation is yet to pay the full salary of employees for the month of June after the crisis in the public utility deepened. The crisis is likely to aggravate in August as the employees are likely to go on the warpath ahead of Onam if the salary for July is delayed.
The corporation requires around ₹260 crore for the operation of its 4,500-odd buses and footing the salary bills of employees per month, while its present monthly revenue is around ₹210 crore. The shortfall in revenue and expenditure is being bridged by the monthly financial aid offered by the State government. However, the delay in receiving the aid of ₹50 crore from the government often leads to court battles and protests by employees.
