Salary crisis: Kerala govt to stand guarantee for loan to help debt-ridden KSRTC find funds

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Thiruvananthapuram: Faced with stiff opposition from trade unions including those affiliated to the ruling front and growing adverse public opinion, the state government finally intervened to resolve the KSRTC salary crisis.

The government directed the management to inform about the amount that the KSRTC would be able to mobilise for paying the salary. The directive came following the discussions held between the finance minister and transport minister on the matter.

The government will stand guarantee for obtaining the loan required for mobilising the remaining amount.

Following the instructions given by the ministers, the KSRTC management will soon inform about the amount that is required for disbursing salary. As of now, the KSRTC took Rs 3,178 crore as loan on government’s guarantee.

The Cabinet directed the ministers to intervene immediately following the decision of ruling front party-affiliated trade unions CITU and AITUC to intensify the agitation.

The  Cabinet also factored in the rising public opinion against the government in connection with the KSRTC salary issue, something which the ruling front could ill afford at a time when the crucial Thrikkakara assembly bypoll is just less than a fortnight away.

In the wake of these factors, the Cabinet directed the ministers to hold a meeting and find ways and means to resolve the issue. Earlier the CITU union had announced that it would launch an agitation from Friday if the government failed to resolve the salary issue.

It may be noted that the fresh assistance from the government is over and above Rs 30 crore that it had been granted earlier for paying the salaries of KSRTC staff.

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