Lockdown in 2nd wave, causes Rs. 600 crore loss to KSRTC

BIJAPUR; 04 June: Even before the four transport corporations of the State could recover from the heavy loss they incurred due to prolonged protest by staff for higher salary, the lockdown imposed in the second wave of Covid has acted like rubbing salt on the wound on financial status of the Corporations.

According to the officials of Karnataka State Road Transport Corporation (KSRTC), the four corporations together have incurred the loss of around a whopping Rs. 600 crore.

The officials estimate that the loss could reach Rs. 1200 if the lockdown continues for about a month.

Shivayogi Kalasad, the Managing Director of KSRTC said that while the second wave has made huge impact on the revenue of KSRTC, the possible third wave of Covid pandemic could add more loss to Corporation if the lockdown is imposed during that time to break the chain of pandemic.

“ We are earnestly hoping that the possible third wave will not be this horrible”, he said.

The major portion of the earnings goes towards the salary of the employees and remaining for maintenance of the vehicles.

The Corporations need around Rs. 300 crore towards the salary of the employees. Since the salaries of the staff should be given even if the buses are out of service, the Corporation has to bear this financial burden.

While the major revenue comes from tickets, the Corporation also earns money from the commercial shops given on rent. The officials said that since the lockdown is in place, the shops have remained shut; it has caused a loss of Rs. 10 crore to the Corporation.

Though there is no exact data, however the officials estimate that all transport services of the country together have incurred the loss of Rs. 2 lakh crore due to Covid pandemic and lockdown.

The only little saving the Corporations have made is that it has saved Rs. 250 crore on diesel. Since the buses are not operating, the Corporation has saved money on diesel.

Latest Indian news

Popular Stories

Latest Video