Daijiworld Media Network – Bengaluru (MS)

Bengaluru, Mar 13: The commercial complexes of all the three corporations under the KSRTC have been pledged as surety in order to obtain loans and the same has been used  for the PF payment of employees according to the information provided by minister B Sriramulu.

Sriramulu said, “The property of the state transport corporations have been pledged in order to resolve the interest issue of the employees. They have not received salaries for one and a half months. In a week’s time, their pending salary will be paid to them. Later on, all employees will start getting salaries every month."

“Former and current CMs have provided Rs 3000 crore to the corporations. Drivers and conductors should not be made to wait for their salaries. So the decision to pledge the property was taken. There is nothing that can be utilized individually. All is being given for their provident Fund. There is no intention of making profit. Transport corporations are only for the service to society", Sriramulu said.

“The KSRTC of south Karnataka has not pledged any commercial complex. However, BMTC has pledged the commercial complex of Shantinagar with Canara Bank. A loan amounting to Rs 390 crore has been taken at an interest rate of 8.6%. This amount is being utilized for PF of employees," he added.

“The NWKRTC pledged a land measuring 16.39 acres in 2019-20 and has taken a loan of Rs 100 crore at an interest rate of 8%. In addition, the Kalyana Karnataka transport corporation has taken an amount of Rs 50 crore loan at an interest rate of 7.20% and the amount is being used for the PF of employees", the minister said.

“As the state government gave Rs 2958 crore to transport corporations during Covid, the salary and maintenance of vehicles was done. But for PF contributions, a loan had to be taken. Transport corporations are not run on a profit basis. It is done for the service of society. So we had to take a loan", he explained.

“The Srinivasamurthy Committee has been formed to bring the transport corporations under loss back to making profit. Compensation is also being given to the staff of the corporations who have died due to Covid. Similarly other issues of the corporations will also be looked into.”