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RTC in dire straits, seeks govt help
Corporation took Rs 2,328 crore loans from various banks and it has to repay the loan amount within six years
- Corporation took Rs 2,328 crore loans from various banks and it has to repay the loan amount within six years
- RTC authorities to urge the Chief Minister for the government’s guarantee for new loans
Vijayawada: Authorities of Andhra Pradesh Road Transport Corporation (APSRTC) will meet Chief Minister N Chandrababu Naidu urging the latter for announcement of sops in the budget to save the corporation. RTC MD M Malakondaiah will be meeting the Chief Minister on Monday to explain the requirements and discuss the dire financial status of the corporation.
According to sources, the corporation is planning to ask the state government for financial assistance to bailout from mounting debts and grants to procure new buses. The corporation took loans of Rs 2,328 crore from various banks and it has to repay the loan amount within six years. The corporation needs new loans to repay the loan amount. The RTC had also asked the government to pay the loans, but in vain. The RTC officials said that clearing of loans by the government is the only solution to bailout RTC from the present crisis.
The RTC authorities are also preparing to urge the Chief Minister for the government’s guarantee for taking new loans. A file regarding a loan from Housing and Urban Development Organisation (HUDCO) is in pending with the government. State finance secretary cleared the file in December, 2016 and it is waiting for the Chief Minister’s nod. HUDCO has agreed to sanction Rs 1,000 crore to RTC against its proposal of Rs 1,200 crore, but wanted guarantee from the state government.
The corporation is facing another major problem of procuring new buses. The authorities will ask the Chief Minister for grants in the new budget for the same. The state government has already sanctioned Rs 100 crore recently for the purpose. The public transport giant is planning to buy at least 700 new buses this year and 114 Corona AC buses. The original need is 3,000 deluxe, express and super luxury buses and 5,000 ordinary buses.
However, the state government is reportedly not happy with the over expenditure in the corporation. The government had already suggested cutting down cost in the corporation. But, the authorities are reportedly confining to primary measures ignoring huge expenses, an official said.
The organisation had to face criticism for building some more stairs on the existing building on a nomination basis by taking loans ignoring the future demand for them. There is criticism over the expenses on diesel and purchases too.
