India News | Cash-strapped MSRTC Seeks Govt Funds to Pay Salaries

Mumbai, Oct 30 (PTI) The Maharashtra State Road Transport Corporation has sought Rs 3,600 crore from the state government for payment of salaries and other essential expenses, Transport Minister Anil Parab said on Friday.

The state-run corporation has not paid the salaries of its employees for the last three months, and to pay them was its priority, the minister said.

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Parab, who is also the chairman of the MSRTC, told reporters that the corporation was trying to raise money through external means too.

"Paying salaries before Diwali is the current priority and we will do it, we would borrow money if needed," he said.

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"As currently even the earnings of the state government have gone down, instead of depending solely on government, the corporation is exploring other options too," Parab said.

Asked about reports that the MSRTC was going to mortgage some of its properties for obtaining a loan, Parab said it could take a loan but it would not be a mortgage.

"Mortgaging properties is different," he said.

The MSRTC needs Rs 292 crore per month for paying salaries. The cumulative losses of the transport body have ballooned to over Rs 5,500 crore, he said.

The MSRTC used to earn Rs 22 crore every day before the coronavirus outbreak, but presently its revenue from passenger services has fallen to barely Rs 5-6 crore, he said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)