Thiruvananthapuram; Chief Minister Pinarayi Vijayan has said that the five-month dues of KSRTC pensioners would be paid by next Wednesday. Mr Vijayan conveyed the decision to the pensioners' organisation at an emergency meeting convened here on Thursday. Loans would be taken from cooperative banks to settle the pension dues. An MoU with the cooperative banks will be finalised on Friday. The pensioners' organisations withdrew their strike after the assurance. The pensioners have been asked to open accounts in cooperative banks within one week.
The government would get the first instalment of Rs. 261 crore loan within a week. The entire pension dues will be paid within this time. A total of Rs 600 crore will be taken as loan. The government will provide Rs. 70 crore to pay the January salary. A total of Rs. 86 crore is required to disburse the salaries and other benefits.
Unlike the earlier practice of the government standing guarantee for the loan, it will take the loan directly, which will be paid back in the next six months. The KSRTC would hand over the details of the pensioners to the government and the cooperative banks. The loan is being taken at an interest rate of 10 per cent. The government has also taken responsibility of the financial liabilities of the KSRTC up to July 2017.
