The Kerala State Road Transport Corporation (KSRTC) and a consortium of banks formally signed the debt swap agreement for Rs 1,300 cr in the presence of Chief Minister Oommen Chandy on Friday, bringing the much-needed financial cushion to the ailing state carrier.
Transport Minister Thiruvanchoor Radhakrishnan, who presided over the function, assured the lender that its loan would be promptly repaid.
“The KSRTC has been rejuvenated with this deal. Let us work together to move ahead,” he said. Chandy hailed the deal and said it would lead to the revival of the corporation. The pension problems in the Corporation had opened the eyes of the government in terms of fiscal prudence and resulted in implementing contributory pension scheme across its departments. Transport Secretary M Sivasankar said it was the last opportunity for the corporation to live up to the expectations of the demanding public.
“The low-interest, long-term deal will help in a yearly savings of Rs 32.5 crore in terms of interest alone,” said chairman and managing director of KSRTC, Antony Chacko, who masterminded the deal. KSRTC transferred its loans of Rs 1,300 taken from the KTDFC to a consortium of nine banks led by the SBI. It took 21 months to conclude the deal. It had to mortgage 79 acres and 25 cents in its 25 units as collateral. It has a total land bank of 426 acres.
News : The New Indian Express
Photos : keralartc.com
