In a fresh development that could witness an already crisis-ridden KSRTC suffering an additional financial burden, the State Transport Department issued an order on Monday stating that all financial liabilities of Kerala Urban Transport Corporation would be the responsibility of the KSRTC.
With the order, the financial liabilities of the low-floor buses bought with financial assistance from JNNURM should be handled by KSRTC only. It was a decision made when the Kerala Urban Transport Corporation was formed as a subsidiary of the KSRTC. This agreement has been issued as a Government order on Monday, said Transport Secretary V M Gopala Menon.
The Kerala Urban Transport Corporation was a special purpose vehicle formed a couple of months back as a condition by the Central Sanctioning and Monitoring Committee on Urban Infrastructure and Governance (CSMC) for releasing funds under the JNNURM scheme for purchasing 400 low floor buses. As per the agreement made the KUTC was formed, all responsibilities of KUTC including its financial liabilities will be KSRTC’s responsibility.
News: New Indian Express