The government has announced a second restructuring package for the Kerala State Road Transport Corporation (KSRTC) to help it overcome the financial crisis caused by the widening revenue-expenditure gap and reduce dependence on the exchequer.
Announcing the details of the KSRTC Restructure 2.0 package at a press conference on Saturday, Chief Minister Pinarayi Vijayan said the package would be implemented over a three-year period.
Of the nine instalments of DA due to employees from July 2016, three would be paid this March. The pay revision due from 2016 would be implemented from June 2021.
Mr. Vijayan said the government had decided in principle to convert the loan of ₹3,197.13 crore given to the RTC as equity and write off the interest and penal interest amounting to ₹961.79 crore.
The management would consider filling at least 10% of the vacancies at various levels through promotions. The Chief Minister announced plans to rehabilitate the empanelled drivers and conductors who were retrenched. Those with over 10 years of service would be accommodated in the KURTC and the rest in SWIFT, the newly-formed company for LNG, CNG and electric buses.
The workshop network of the KSRTC would also be restructured with 14 major workshops and six at the sub division level, all equipped with modern facilities. Neat rest rooms for crew would be provided at all halting stations. Staff at the head office would be redeployed to the administrative and accounting sections and provided with more promotion prospects.
New schemes such as shops-on-wheels, KSRTC logistics and digital advertisements would be launched to tap non-ticket revenue sources.
The modernisation of the Vikas Bhavan depot, Thiruvananthapuram, and construction of a commercial complex would be taken up in association with the KIIFB, while the RTC would join hands with the KTDC for the construction of a hotel in Munnar. As many as 600 employees would be posted at the petrol and diesel outlets to be set up at 76 depots.
Besides, an amount of ₹225 crore has been earmarked to remit the dues on account of salary recoveries of employees to banks, KSFE, cooperative banks and LIC.
“The government is providing an assistance of ₹1,500 crore to ₹1,700 crore every year to keep the corporation afloat. The restructuring package is aimed at helping it reduce this dependence. The proposals, however, could be implemented only with the full support of employees and in a conducive industrial environment,” Mr.Vijayan said.