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Maharashtra State Road Transport Corporation likely to borrow ₹2,000 crore to continue operations, pay salaries
The cash-strapped Maharashtra State Road Transport Corporation (MSRTC), which runs buses across the state, hopes to secure a loan of ₹2,000 crore to continue its
The cash-strapped Maharashtra State Road Transport Corporation (MSRTC), which runs buses across the state, hopes to secure a loan of ₹2,000 crore to continue its operations. During the lockdown, MSRTC has suffered a loss of ₹5,500 crore.
State transport minister Anil Parab said on Friday that MSRTC is seeking ₹3,600 crore from the state, but may also borrow from the market.
“I have given a proposal to the state seeking ₹3,600 crore to pay salaries of state transport employees, and for basic operations. Looking at the state government’s [financial] condition, I will not be able to depend on the state alone. Therefore, we are looking at raising funds from the market,” Parab said.
MSRTC officials said they have carried out a primary evaluation of assets, which could help them raise ₹2,000 crore in loans from domestic lenders. The corporation will keep its properties and assets as security, Parab said.
“Mortgaging doesn’t mean handing over property or buses to the bank. It [property and assets] is evaluated and a proportionate loan is provided. If we mortgage something, it doesn’t become their property. We will assess everything and ensure nothing [property/asset] goes from our hand and only then borrow. The money we are going to borrow will be for our immediate needs like salary, fuel expenses, tyres, etc,” said Parab.
The minister said MSRTC had sustained a loss of ₹5,500 crore during lockdown and employees’ salaries have not been paid for the last three months. Daily revenue from ticketing was ₹22 crore prior to the pandemic and has now dropped to ₹5 crore.
“Salaries are pending for the last three months, so around ₹900 crore is needed for salaries. We are discussing how fast we can give these salaries, but the amount is also not small. The total loss of the MSRTC is ₹5,500 crore. Since the source of revenue has not gone up, the losses are mounting,” he said.
