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News updated at 8:05 PM IST

Govt owes transport corporations Rs 371 cr

Bangalore, July 15, 2013, DHNS: 0:14 IST
The State government owes road transport corporations (RTCs) nearly Rs 371 crore by way of reimbursement for the subsidy on concessional bus passes issued to students and other commuters, Transport Minister Ramalinga Reddy said here on Monday.

“We were to be reimbursed Rs 871 crore for the subsidy provided to certain commuters by way of bus passes. The government already paid us Rs 500 crore and the balance Rs 371 crore is pending. Once we receive the payment, we will clear staff salaries and arrears of retired employees,” Reddy explained.

The minister admitted that the Hubli-headquartered North West Karnataka Transport Corporation (NWKRTC) had been incurring huge losses.

It is said that the NWKRTC accrued a loss of at least Rs 430 crore from 1998-99 to 2012-13.

Reddy was responding to a question in the Legislative Council over the delay in
clearing the arrears of 1,151 retired employees of the NWKRTC.

He promised the arrears would be cleared first thing once the government paid the remaining sum.

On the other hand, Reddy said, the government had identified several lacunae in preventing private buses from plying on certain routes in the State without seeking permits from the respective Regional Transport Office (RTO).

The Transport Department had already fined 2,490 unauthorised private buses, of the 6,500 buses inspected in the State from April 1, 2012 to June 30, 2013.
The department collected Rs 32.35 lakh by way of penalties, Reddy said.

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