THIRUVANANTHAPURAM: KSRTC's plan to buy new buses is in limbo due to the non-receipt of the government's 75 crores and KIIFB loan of 181 crores.

Ashok Leyland Company had demanded 90 percent of the tender amount for new buses. The one-year tender will expire on the 26th. If the amount is not sanctioned before that, a fresh tender will be required and the current price of the bus will also have to be paid. There will be an additional liability of Rs.6.33 crore.

Last year, Ashok Leyland was given a tender to buy 600 buses. 22.18 lakh per chassis, which was Rs 1.35 lakh less than what Tata had quoted. After the tender, 131 superfast bus was purchased. The remaining 469 buses can be purchased at the same rate. If a new tender is invited, the chassis will cost at least 1.35 lakhs extra, apart from the increase in bodybuilding. 6.33 crores more for 469 buses even if only the chassis price increase is considered. To avoid this, Transport Secretary Biju Prabhakar sent a letter to the Finance Department asking that at least 50 percent of the amount should reach the KSRTC account immediately, but to no avail.

KIIFB had decided to grant a loan of Rs 181 crore last May. The decision was taken during a discussion held by Chief Minister Pinarayi Vijayan, Minister Antony Raju and KIIFB CEO KM Abraham. The decision was made after considering the reports of the transport department that increasing the bus services would increase the revenue and from that the expenses including salaries can be covered on their own. 75 crores were then sanctioned. Of this, Rs 50 crore is for buying 131 diesel buses and Rs 25 crore is for luxury buses.

Worst busses for best routes

Out of 1800 long-distance buses, 1669 are expired. A new bus should run super class service only for five years and then it should be made to run ordinary service. 159 buses running at present are 10 years old. It is impossible to provide service to new routes due to the lack of new buses.