Thiruvananthapuram: The Kerala Transport Development Corporation is preparing to wind up its operations following severe financial crisis. A letter from the Principal Secretary (transport) to the CMD, KTDFC has come out which reveal that advanced plans are afoot to liquidate KTDFC.
The letter says that the winding up of KTDFC will happen along with the modernisation of the KSRTC.
The letter also suggested KSRTC to repay 356.65 crore to settle the liabilities. KTDFC is the largest lender to KSRTC.
KTDFC currently owes Rs925 crores to the public. A report prepared by the General Manager of KTDFC states that it has only 353.89 crore in its hand as deposits which would be sufficient to pay its deposits till June 2021.
Prior to accepting the investment, KTDFC was promised a higher interest rate but that did not work. This lead to severe financial crisis. The KTDFC is planning to transfer its employees to other departments and stop working. There are also indications that the government will also support the closure of KTDFC.
