The Kerala State Road Transport Corporation (KSRTC) has commenced curtailment of 25% of its 5,588 schedules operated daily as cost-cutting measure to overcome financial crisis.
The decision will impact commuters across the State as 1,395 schedules will not be operational.
“There is no other way to bring down the expenditure,” KSRTC Chairman and Managing Director Tomin J. Thachankary said on Thursday.
Fuel, tyre expenses
The corporation owes oil majors ₹188 crore for fuel and ₹22 crore to tyre companies. Mr. Thachankary said the KSRTC had money only to pay the salary of the 40,000-odd employees on the rolls from the revenue generated.
The government did not respond to the request made by the KSRTC for a ₹95-crore financial assistance for paying the salary, bonus, Onam advance and festival allowance. Though the government provided only ₹20 crore, Mr. Thachankary said funds were mobilised internally and the salary was disbursed to the employees and empanelled staff on Thursday.
This was the first time that the KSRTC could not pay bonus, festival allowance, and Onam advance. Mr. Thachankary said this had upset the employees. As many as 5,320 personnel are eligible for ₹7,000 as bonus under the Bonus Act.
Flood impact
The CMD said the corporation was not able to buy spare parts for buses nor could it pay medical reimbursements and other emergency needs.
The recent floods hit the KSRTC badly with the daily revenue plummeting from ₹6.5 crore to ₹2.5 crore and the corporation suffering a loss of ₹30 crore in five days. The corporation also had to bear expenses for operating 210 buses for rescue and relief operations in the State and for ferrying rescue teams.
Thampanoor Ravi, president of the Transport Democratic Front, said the KSRTC should withdraw the decision as ordinary people depended on it for commuting. “The curtailment will result in entry of parallel services and help private stage carriers reap profit,” Mr. Ravi said.