Kerala State Road Transport Corporation (KSRTC), running up an accumulated loss of over Rs16bn, has proposed the Build, Operate and Transfer (BOT) model to develop facilities, including swanky new shopping complexes, at prime locations to augment its revenues.
Corporation chairman and managing director T P Sen Kumar says the corporation, with staff strength of 30,000, of which 10,000 are temporary hands, is facing its worst-ever financial and managerial crisis.
In the short term, Kumar wants the Government to waive Rs 7 billion the Corporation owes to the exchequer and issue Transport Bonds to mobilise Rs5 bn so that the corporation could foreclose debts and begin its accounts on a clean slate.
In the first phase, the Corporation calculates to earn Rs800 million a year by opening up 30 of its locations- depots and bus stands- to contractors who would build, operate and transfer the developed property after a term of 20 years or more.
In the second phase, another 29 locations would be added to the BOT list, further enhancing the Corporation revenues. Projects can be taken up jointly with Kerala Transport Development Finance Corporation as BOT operator. It has been envisaged that the 50 percent of the BOT revenue would be shared with the corporation, right from the first year of the operation.
The proposal has been pending with the Government and once the official nod is given, the Corporation would invite tenders and complete the work within 30 months
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