Kochi : Kerala government has given Rs 20 crore to the ailing Kerala State Road Transport Corporation which had stopped operating a number of ordinary services for not having money to buy diesel.
The government took this decision as this had caused inconvenience to the people in areas where KSRTC operated the majority of ordinary services.
A state government, which is itself in deep financial crises, had no other alternative to ensure smooth operation of ordinary services.
The situation became worse as the Indian Oil Corporation refused to give fuel to the sick transport company which had defaulted payment of pending dues.
The transport company is now buying fuel from retail outlets as the fuel supplied by the IOC is more expensive than the diesel offered by retail dealers.
The government has already gone on record saying that it cannot help KSRTC which is now struggling to find money to pay salaries and pension to its staff and retired staff.
About two years back, the total outstanding financial liability of KSRTC was over Rs 3,430 crore.
Out of this, a lion share of Rs 3,043 crore was due f bhior a consortium of major banks which had given loans to KSRTC on different occasions.
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