Kerala Finance Corporation Ends Private Bus Operators, Forgoes Funding for CNG Conversion – The New Indian Express

Express news service

KOCHI: The decision of private bus owners to convert buses to CNG to cope with rising oil prices has received a major shock. Kerala Finance Corporation (KFC), which had agreed to provide financial assistance of Rs 4 lakh for the conversion of each vehicle to CNG mode, reportedly abandoned the project. The company had made loans to convert eight buses to CNG engines in the state. , but this sudden decision worried bus owners.

According to members of the Bus Owners Association, the government has made big statements about reviving the private bus industry, which has gone through a rough patch after the pandemic hit the country. “Although the government announced a big stimulus package to provide loans for private bus conversion to CNG, nothing happened. Now KFC is not ready to sanction the amount it had promised anymore. early.

Only eight Kochi buses got the loan. They do not consider requests from other bus owners. What is the point of announcing such a big stimulus plan? How to fight against rising fuel prices? asked George Joseph, a member of the Federation of Private Bus Owners and owner of the state’s first private bus converted to CNG. Bus owners said if a bus ran on CNG it would help cut daily expenses to Rs 4,000.

They believe that if the government grants a loan of Rs 4 lakh to cover installation costs, the expense can be recovered within a year. Due to rising fuel prices, more than 50 bus owners in Kochi alone are ready to switch to CNG. If the vehicle runs on diesel, it will be difficult to cope with the daily expenses. KFC’s decision to drop the loan program is unfair, ”said one bus owner.

In the meantime, we learn that KFC has given oral instructions to all its branches to suspend the distribution of the loan. Sanjay Kaul, IAS, who recently took over as chief executive of KFC, made the decision after a few bus owners failed to repay loans, it is alleged.

“A few bus owners did not pay the IMEs on time. If the situation persists, it will add further burden to society. We have already granted loans to nearly 10 bus owners. But some people don’t pay it back on time. We are forced to put the project on hold for a few months, ”said a senior KFC official. Kaul could not be contacted for comment despite attempts to reach him at his office.