Team Herald

PANJIM: The Kadamba Transport Corporation Limited (KTCL), which is running into financial losses, could soon be granted its annual subsidy with the Cabinet Advisory Committee (CAC) recommending Rs 16.50 crore. 

The recommendation on April 21 comes after the KTCL submitted a proposal to the CAC - comprising of Ministers Francis D’Souza (BJP), Ramkrishna Dhavalikar (MGP) and Vijai Sardesai (GFP) - seeking financial support to pay salaries to its employees and ensure quality maintenance of the buses. 

“The subsidy is recommended to run the KTCL, in terms of paying salaries to its employees, maintenance of the intra-state and inter-state buses; procurement of diesel, bus tyres; etc,” Urban Development Minister Francis D’Souza informed Herald. The file, accompanied by the Corporation’s proposal is likely to be sent to Chief Minister Manohar Parrikar for his approval this week.   

D’Souza clarified that the amount is not a part of the financial powers granted to CAC by the CM.  The CAC’s power to sanction funds for emergency financial needs was upped from Rs 5 crore to Rs 10 crore, for its tenure this month. 

“The KTCL is not making profit although it plays a very important role in providing transport service to the people in the urban and rural areas. Some are profitable routes while some are not… The subsidy CAC has recommended is through the annual plan of the government, which is granted for the smooth functioning of the Corporation,” the minister added. 

Besides running a fleet of local and inter-state buses, KTCL ventured into a new project by launching environment-friendly electric bus on a trial basis this January. The corporation is looking for a fleet of 50 electric buses, if the business model is to work in Goa.

Corporation Chairman Carlos Almeida has also shown interest in starting an app-based KTCL cab service in Goa in a bid to provide affordable and efficient taxi service for the local passengers as well as tourists.