A busload of problems in Kerala State Road Transport Corporation Premium

Cash-strapped KSRTC faces crisis as CMD steps down due to High Court raps and inter-departmental feuds. Kerala government must find lasting solution to issues, involve all stakeholders and keep KSRTC afloat to serve 25 lakh passengers a month.

The cash-strapped Kerala State Road Transport Corporation (KSRTC) is heading towards another crisis with Biju Prabhakar, the chairman and managing director of the public utility, announcing that he will step down.

The Corporation, with an operational fleet of around 4,600-4,700 buses, has often been in the midst of controversy as trade unions have repeatedly opposed its proposed reforms. This time, the public utility has grabbed headlines for a different reason. Repeated raps from the Kerala High Court along with inter-departmental feuds have forced Mr. Prabhakar to inform the government about his willingness to call it a day.

In the latest incident, while expressing strong displeasure over the non-payment of last month’s salary to KSRTC employees, the High Court on July 14 directed Mr. Prabhakar to appear online before it if salaries are not paid by July 20. The reluctance of the Finance Department to provide the assured monthly financial aid to the Corporation on time has made things worse. A section of employees owing allegiance to the Opposition Congress marched in protest to the official residence of Mr. Prabhakar.

Also read | Provide further financial aid to KSRTC to pay staff salary: Kerala HC tells govt.

It was during an earlier crisis that Chief Minister Pinarayi Vijayan had provided assurance that a monthly financial aid of ₹50 crore would be given to the Corporation before the 5th of every month, which would pay the salary of the 25,000-odd employees. However, the Finance Department has been dragging its feet by not paying the promised amount. It instead issued only ₹30 crore, that too after repeated requests by the Corporation every month. The KSRTC has an average monthly turnover of ₹210 crore, and requires around ₹260 crore to meet all its expenses, including salaries. Had the government provided the assured monthly aid of ₹50 crore on time, the Corporation could have stayed more afloat without relying on other financial institutions. In addition, the State has not provided adequate major working capital sought by the Corporation in recent times. As a result, around 1,200 buses are lying idle without proper maintenance after COVID-19.

To add to the KSRTC’s woes, miffed employees continue to resist the reforms that are mooted by the management from time to time. A senior KSRTC official asked how the management could implement reforms when the employees were not even given their salaries, let alone other perks, on time. The Corporation’s recent decision to implement a 12-hour single-duty system for employees has also run into rough weather with unions opposing the move.

Though the management forcefully implemented a new system for optimum utilisation of employees on a pilot basis at selected depots from October 1, 2022, it could not extend it across the State even nine months after the introduction of the new system.