THIRUVANANTHAPURAM: The Government has increased the minimum ticket fare in KSRTC buses from Rs 6 to Rs 7. The new rate is now on a par with the minimum fare of private bus services. The Cabinet decision effectively reversed the decision by the Oommen Chandy government in February this year to reduce minimum charge exclusively for KSRTC resulting in a daily loss of Rs 25 lakh to the ailing state carrier.
Transport Minister A K Saseendran said the decision was taken to unify the minimum charges of private bus service and that of KSRTC. “The previous government took populist decisions ahead of the election without considering the financial capacity of KSRTC. They did not take any effort to bring down the rates in private buses,” said Saseendran. He was speaking at a meet-the-press at Kesari Memorial building here.
According to him, KSRTC suffered a loss of Rs 16 crore after the previous government made bus ride free for students up to higher secondary. Saseendran said the government was not taking any decision to revoke free ride immediately.
No magic wand to rescue corp: CM
T’Puram:Chief Minister Pinarayi Vijayan has said that the government did not have a magic wand to rescue KSRTC from crisis, but it had not considered it best to leave KSRTC to its natural death. He was speaking after inaugurating the concluding session of the Save KSRTC campaign by KSRT Employees Association (CITU) at Thampanoor bus stand on Tuesday. The Chief Minister said the government is obliged to take immediate steps to revive the ailing KSRTC.
“We need more energetic steps to tide over the crisis. A comprehensive plan to match revenue and expenses is needed.” he said.
According to Pinarayi, a comparison with private bus operators was not necessary as the hallmark of KSRTC was its social commitment. “We cannot review everything on the basis of profit and loss. No democratic government can stop night services based on revenue,” he said.
From the daily collection of Rs 5.25 crore, Rs 2 crore is spent on salary. Rs 30 lakh is needed daily for interest payment.
The Chief Minister said it was not feasible to take loan every month for expenses. He sought the support of employees for the steps taken by the government to revive the KSRTC. The KSRTEA handed over the key of a new bus bought with the money collected from employees to Chief Minister.
LDF convener Vaikom Vishwan presided over the function. General secretary of KSRTEA C K Harikrishnan, V Sivankutty, Jayanbabu and K K Divakaran spoke at the function.
‘Fare hike no solution’
T’Puram: Opposition leader Ramesh Chennithala has criticised the government decision to increase the minimum KSRTC bus fare from the prevailing Rs 6 to Rs 7, pointing out that it is wrong to burden the people without rectifying the maladministration in the PSU. “The cut in minimum fare was effected last year,when the UDF Government was in power. Already,the KSRTC is experiencing a post-demonetisation dip in collection. The minimum fare hike may only increase the revenue gap. Past experience had shown that the fare hike will only distance people from patronising KSRTC buses and will eventually increase the losses. It will only aggravate the financial position of the ailing corporation,” Ramesh said. “If hike in diesel price is cited as a reason for the minimum fare hike,then what has to be done is to forgo the state taxes imposed on the increased price on fuel,” he said.
Trade Unions withraw stir
T’Puram:The trade unions in the KSRTC withdrew strike after the Transport Minister A K Saseendran agreed to address the salary and pension issue. In a meeting held between the minister and trade unions, the government agreed to give the rest of the salary within two days. Once again the government has turned to Kerala Transport Development Finance Corporation, a non-banking financial corporation, to find money for paying the salary. Employees received only 75 per cent of their November salary so far, as the KSRTC struggled to find a lender. KSRTC will take loans to pay salary and pension for the next month. He however hinted that strong action will be taken in the next three months to discontinue the practice of taking loans for paying salary.
“When the KSRTC started giving pensions, the liability was just Rs 2 crore. It has now become Rs 61 crore. With no significant improvement in earnings we cannot go on for ever,” said Saseendran. According to him, employees who go on unauthorised leaves and those who failed to report for duty before December 1 would be laid off. “There are 2,400 such employees, out of which only 800 has responded to the notice served to them. We will take action after considering their merit,” said the minister. He however allayed the concerns of trade unions that the KSRTC was planning a massive lay off. He said the government had a responsibility for saving KSRTC. “The policies of previous government resulted in piling up of debt. Debt will not help it in the long run,” he said.
Private bus operators to go on stir
The Government refused to accept the demand of private bus operators to hike the minimum fare in private buses to Rs 9 due to hike in diesel and tax rates. The Transport Minister said no decision has been taken in this regard. The Bus Operators Organisation said they would go on a strike by January second week.