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We’ll borrow ₹2,000 crore loan to clear dues of transport corporations, says Minister

We’ll borrow ₹2,000 crore loan to clear dues of transport corporations, says Minister

The Hindu
Wednesday, April 23, 2025 2:31 PM GMT

State government approves ₹2,000 crore loan for road transport corporations, plans to procure 2,000 new buses, curb overloading, and increase revenue.

The State government has approved a loan of ₹2,000 crore to clear the pending dues of State road transport corporations, according to Transport Minister Ramalinga Reddy.

Speaking to the media in Kalaburagi on Wednesday, the Minister said that the corporations will not be required to repay the loan as the State government will bear the responsibility.

“The profits made by the State-owned road transport corporations need not be spent on clearing their dues, as the government will clear them. The corporations can spend their profits to support future projects. As part of the modernisation and expansion plans, the government intends to procure 2,000 new buses this year, of which 700 each will be allocated to the North Western Karnataka Road Transport Corporation (NWKRTC) and the Kalyana Karnataka Road Transport Corporation (KKRTC). The rest will go to KSRTC, while BMTC has not placed any new demands,” he said and directed the KKRTC officials to submit proposals promptly.

Earlier in the day, Mr. Reddy chaired a meeting of senior officials of the Regional Transport Office at KKRTC headquarters to review progress of work. In his brief interaction with media representatives after the meeting, he said that the meeting emphasised the need for stringent action against overloaded vehicles.

“Overloaded vehicles, especially trucks transporting sand and gravel, cause significant damage to roads and result in a loss of royalty revenue for the government. Rural roads can withstand loads between 10 tonnes and 15 tonnes. However, when 30-tonne trucks use these roads, they deteriorate rapidly. Overloaded vehicles must be identified and stopped and legal action must be initiated. I have directed the officials concerned to enforce strict regulations in all the seven districts of the region to curb the menace,” he said.

Responding to the Minister’s statement, a Transport Department official reported that 607 cases related to overloading have been registered from January to date, with 244 cases in Kalaburagi district alone. He also added that a special squad has been deployed in Gundagurthi to tackle the issue of sand overloading.

Pointing out at vehicles registered in Puducherry operating in Karnataka without paying local taxes, the Minister said that the officials have been directed to pay special attention to such cases, reminding them of the revenue collection target of ₹15,000 crore set for the Transport Department for the current fiscal.

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