Amidst a financial crunch, KSRTC is exploring mitigation measures, including the possibility of pledging new KSRTC-SWIFT buses. However, such a decision would require approval from the state government.

The KSRTC-SWIFT fleet comprises buses worth Rs 280 crore, procured with financial assistance from the government. Pledging these buses with financial institutions could enable KSRTC to secure a lump sum amount. By obtaining at least Rs 200 crore through this, KSRTC aims to settle salary arrears.
Nevertheless, financial institutions are not very happy. KSRTC has only repaid Rs 4 crore against the overdraft of Rs 50 crore taken from SBI last month. It would require at least Rs 150 crore to settle the salary of employees. Another Rs 140 crore would be required to distribute pension. 

Why crisis aggravated?

The monthly crisis relief of Rs 50 crore, which was promised by the state government, has been delayed in reaching KSRTC. Additionally, from April to July, the allocated monthly relief was reduced to Rs 30 crore, resulting in a total deficit of Rs 80 crore that KSRTC is yet to receive from the government.

Earlier, KSRTC used to take diesel at a ‘bulk purchaser’ tariff. At that time a 45-day window was available to settle the fuel expense. KSRTC used to manage funds by delaying the payments and by taking Rs 50 crore overdraft. However, as the ‘bulk purchaser’ tariff increased, it switched to Yatra Fuels. As a result, diesel will be available only if the receipt of the fuel bill paid is uploaded online.