The Karnataka government has approved a Rs 2,000 crore loan to tackle the financial crisis plaguing the State Road Transport Corporations (SRTCs). These corporations are grappling with liabilities amounting to Rs 5,492 crore, including unpaid Provident Fund (PF), fuel bills, and dues to retired employees.
The decision comes as rising operational costs and delayed payments for the Shakti scheme have exacerbated the financial strain on SRTCs. Introduced in June 2023, the Shakti scheme provides free bus travel for women, but its implementation has left SRTCs awaiting Rs 1,600 crore in dues from the government.
The liabilities of the SRTCs are staggering. Provident Fund dues alone stand at Rs 3,595.29 crore, while gratuity and earned leave for retired employees amount to Rs 399.29 crore. Additional debts include Rs 659.25 crore for fuel expenses, Rs 146.78 crore for spare parts, and Rs 153.54 crore in accident compensation cases.
Operational losses have compounded the crisis. For the fiscal year 2023-24, KSRTC reported losses of Rs 295.43 crore, BMTC Rs 575.45 crore, NWKRTC Rs322.48 crore, and KKRTC Rs 161.12 crore, despite revenue gains from the Shakti scheme.
KSRTC employees have announced plans to protest on 31 December, citing delays in wage revisions and unpaid arrears spanning 38 months. Workers demand that the government fulfil its promise of a pay revision effective from January 2024.
The protest plans hinge on the outcome of a 30 December meeting between the Labour Commissioner and employee unions. Employees argue that while government workers have received significant pay hikes, their demands have been ignored despite their pivotal role in implementing schemes such as Shakti.
Transport workers have highlighted significant wage disparities between them and government employees, as well as counterparts in neighbouring states. Employees also raised concerns over low basic pay and alleged misuse of resources by higher authorities, which they claim contribute to the financial struggles of SRTCs.
