Rs 1,059 crore lifeline for RTCs

NT Correspondent

Bengaluru

The four road transport corporations (RTCs), which were facing a huge rise in operational costs due to increase in fuel price, have been provided a relief of Rs 1,059 crore by the State government.

Since the start of the pandemic, the RTCs have suffered huge financial losses due to lockdowns, which has put them under severe revenue distress. In addition, they have had to keep up with the increasing fuel prices, staff costs among other expenses, pushing them to the brink.

 The corporations failed to make their statutory payment of provident funds (PF) and had notified the government as it could result in legal action. They were also unable to clear other dues. Out of the financial assistance provided by the state government, Rs 800 crore will be used for clearing provident fund dues and the rest of the amount to meet fuel bills.

 According to the order, the highest allocation of assistance was for Karnataka State Road Transport Corporation (Rs 330 crore), followed by Bangalore Metropolitan Transport Corporation (Rs 279 crore), North Wester n Karnataka Road Transport Corporation (Rs 320 crore), and Kalyana Karnataka Road Transport Corporation (Rs 130 crore)