Restructure the KTC loan, Govt tells GSCB
HERALD REPORTER
PANJIM, MARCH 29
After conceding to pay wages as per sixth pay commission recommendation to its workers, the Kadamba Transport Corporation Limited (KRCL) has shown inability to pay loan of Rs 48 crore it owed to a local cooperative bank.
The state government conceding to the request has said that it will pay the loan, provided bank – Goa State Cooperative Bank (GSCB) Limited, restructures the amount, which is “bloated” because of the failure to pay timely installments.
KTCL managing director Amarsen Rane told Herald that they have already requested the bank to restructure the principal amount so as to pave way for the payment of the entire sum, procured in 2002 to buy buses by the corporation.
The initial loan amount taken by the corporation was just Rs 28 crore of which Rs 14 crore were paid in different installments. The bank had given loan in two different installments of Rs 10 crore and Rs 18 crore, which was sanctioned to strengthen the ailing fleet of the Corporation.
The interest on the principal amount had jammed the corporation as the entire amount touched whopping Rs 48 crore, which was difficult to pay back for the corporation that is already running in loses and dependent on state government even to pay wages for its staff.
The KTCL is already facing an uphill task of gathering money to pay its workers as per sixth pay commission. The corporation has decided pay the revised wages to 1900-odd workers of this corporation.
It will burden the ailing corporation by almost Rs 30 crore as arrears and Rs one crore monthly salary liability. They will also have to pay the arrears from January 2006 onwards.
Officials stated that the corporation will have to pay 25 per cent of the arrears in advance and rest would be distributed over next ten years.
