Bengaluru: “The Karnataka State Road Transport Corporation (KSRTC) is set to incur a huge loss due to demonetization of high-value currency notes, hike in diesel price and an increase in employees’ salary”, Minister for Transport Ramalinga Reddy said.
Speaking with media persons here, Minister Ramalinga Reddy said the KSRTC has reported a profit of Rs 114 crore during the last financial year but it would be impossible to make such profit this fiscal due to demonetization, hike in diesel price and increase in employees’ salary. “Four divisions of the KSRTC have incurred Rs 55 crore loss due to demonetization. The profit of KSRTC would be less compared to last year,” the minister said.
He said that KSRTC had entered Limca Book of Records by winning a large number of awards in the country. “Till now, the KSRTC has won more than 165 awards. Recently, it won gold award for e-governance,” he added.
For the first time in it’s history, KSRTC had reported a gross profit of Rs.114.95 crore during the year 2015-16. Out of the said profit, an amount of Rs.64 crore has been earmarked for the gratuity fund, with a view to utilize the same for the final settlements of the retired employees of the Corporation. The net profit for the year 2015-16 stood at Rs. 50.95 crore. The present loan liabilities, earlier which was Rs.314.73 crore during year 2014-15, has reduced to Rs.153.51 crore, by clearing the loan of Rs.161.22 crore.
According to a release from the KSRTC, the construction work of 15 new bus stands will be completed and upgraded at Nanjanagudu, Kanakapura, Hassan (TTMC), Hanur, Koppa, Alur Siddapur, Chikkaballapur, Arehalli, Chunchanakatte,, Kodihalli, Besagarahalli, Suttur, Hirisave and KM Doddi. “Under JNnurm (UIDSSMT) project the construction of bus depot at Kolar, KGF, Udupi and Shivamogga are to be completed. Under DULT, the construction of new Bus Stations at Harihara, Kollegala, Udupi, Doddaballapura and Kolar are yet to be completed. The construction of staff Quarters at Madikeri, Hassan, Chikkamagaluru, Sakaleshpura, Chitradurga,Tiptur, Suttur, Sulya, Dharmastala, Mudigere, Chikkaballapura and Shantinagar (Bangalore),” the release said.
The KSRTC, which earlier purchased fuel from Indian Oil Corporation (IOC) for the past five decades, had diverted its purchase to BPCL from July 1, 2015. “From this and in addition to this, 212 depots of the four Corporations will get Automated Fuel Facilities and new fuel bunks, free of cost. From all these, an approximate amount of Rs.358 crore will be saved to all the four Corporations for three years. The Fuel Automation facility will be inaugurated shortly,’’ it said.
