KSRTC to resume payment of blocked pensions
Thiruvananthapuram: The Kerala State Road Transport Corporation (KSRTC) will resume distribution of pensions soon after the state government decides on the interest rate of loans to be advanced to the common carrier. The state and cooperative finance departments are to take a call on the interest rate, sources said.
A sum of Rs 68 crore has to be found to distribute the August pension. This even though the beneficiaries have not yet received a pension for the last two months.
The payments crisis was temporarily resolved after a consortium of cooperative banks, which provides the pension fund, agreed to lend the amount at an interest rate of 8%. Usually the banks provide the funds, and the government then reimburses them.
Previously, banks charged 10% interest on these loans. However, the finance department reduced the interest to eight percent. When the banks demanded at least 8.5% interest, the department insisted on paying only 7.5%.
The High Court had ordered the state the other day to distribute the pension by the fifth of each month.
Meanwhile, Transport Minister Antony Raju said Chief Minister Pinarayi Vijayan had agreed to hold talks with employee unions to resolve various issues that were embarrassing the KSRTC.
Previously, the unions had opposed the management’s decision to introduce the single law system in the Company. Although Ministers Antony Raju and V Sivankutty held talks with the unions, these did not bear fruit.