Kollam: The Kerala State Road Transport Corporation (KSRTC) continues to struggle under mounting debt, even as the government steps up efforts to turn the public transport system profitable.

As per figures available up to October 31, 2025, KSRTC’s total liabilities stand at ₹17,235.47 crore. Even government assistance provided for paying salaries and pensions has been recorded as ‘debt’.

From loans taken through a consortium of banks, KSRTC still has ₹2,692.33 crore left to repay. The repayment period for this loan extends until March 31, 2039.

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In 2018, KSRTC had availed a ₹3,100 crore loan from a consortium of banks by mortgaging its movable and immovable assets. This amount was used to clear outstanding loans from Housing and Urban Development Corporation Limited (HUDCO), LIC, Kerala State Power Finance Corporation, and employees’ cooperative societies. Though repayments began in 2018, only ₹407.67 crore of the principal has been repaid so far.

KSRTC owes ₹849.44 crore to employees. This includes amounts deducted from employees’ salaries meant to be transferred to financial institutions but not yet paid.

Under the National Pension Scheme (NPS), KSRTC has a liability of ₹443.94 crore, comprising employee contributions collected and the management’s share.

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Pending pension benefit payments amount to ₹110.53 crore, which are being disbursed in instalments. Additionally, ₹35 crore remains unpaid as drivers’ additional allowance from October 2022 onwards. Life insurance premiums worth ₹8.94 crore, collected from employees, have also not been remitted by KSRTC.

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In several cases, KSRTC entered into agreements to deduct amounts from employees’ salaries for repayment to financial institutions (non-departmental recovery), collected the money, but failed to transfer it to the concerned institutions. Under this, ₹34.92 crore collected from employees remains unpaid.

Many of these issues are currently under litigation in the Supreme Court and other courts. The ongoing legal proceedings are causing significant financial losses to the corporation every year.