KSRTC Pensions : Govt to avail loan from co-op banks

Thiruvananthapuram : Post the High Court ordering pension dues, the State govt now plans to avail loan from co-operative banks to help KSRTC  pay its pension  arrears.

The decision came about in a high-level meeting chaired by the Chief Minister on Wednesday.

The loan to aid pension dues will come at an interest rate of 10 percent taxing the exchequer with Rs.605.7 crore including interest.

Earlier in the budget the Financial Minister said the govt will stand guarantee for KRTC loans from Coop banks.

Switching to this higher help is in retrospect of the State transporter’s ongoing crisis.

KSRTC cannot shoulder more liabilities since it already has huge outstanding to the consortium of public sector banks, the meeting evaluated.

KSRTC will submit details of pensioners to the govt and to the coop banks.

The first instalment of Rs. 224 crore will be handed over to the transporter in a week’s time, an official said.

Over this, the govt will provide Rs. 70 cr to KSRTC for meeting salary needs. It presently needs Rs. 86 crore to provide salary inclusive of benefits.

Also read : KSRTC has no right to suspend pension : HC

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