951 Part 3 of Private Travels closures, Future of Public Sector Bank Loans to Private Travels, Future of APSRTC, some solutions

I have no love or hate relationship with any bourgeoisie political party in Residual Andhra Pradesh or India. My interest in writing this particular blog post is, the problems which closures of Private Travels such as Kesineni Travels, Kaleswari Travels are likely to pose to Andhra Pradesh State Road Transport Corporation, probably the largest Public Sector Road Transport Corporation in India, and the World (in terms of number of buses), and which is reported to be a Guinness Book of Records holder. My concern is also about the problems which Indian Public Sector Banks in India, and especially the PSBs in Residual Andhra Pradesh are likely to face, when their indiscriminate careless lendings to Private Tours and Travels become NPAs. I am also deeply distressed about the problems which the families of displaced Private Tours-Travels Staff i.e. the Proletariat (drivers, cleaners, mechanics, booking clerks, accountants, etc.) are likely to face in an alround miserable unemployment situation in the State and the Country.

It has been found by Googling on the Net, that M/s. Kesineni Travels who were earlier owning nearly 400 buses, have already sold approx. 230 buses, leaving the 170 buses which they now have at the time of closure on April 2017. It is not clear to whom they have sold their 230 buses. If they have sold their buses to other Private Operators in Residual Andhra Pradesh, then probably the drivers, cleaners, mechanics etc. relating to the 230 buses might have been absorbed by the buyers. In such a case, the Proletariat may not have immediate problem of unemployment, but they cannot ask for rises in wages till at least one two years ahead, as their primary concern of job security itself will be in jeopardy.

If the buses were sold to operators located in other States of India, then those buyers may be interested to appoint their own drivers, cleaners, mechanics. In such a case, the Proletariat will have a serious unemployment problem.

It is not clear whether M/s. Kesineni Travels have obtained any Public Sector Bank Loans for the 230 buses they have sold, and if so, they have repaid PROPORTIONATELY their loans to the Banks. Let us hope that they have cleared their loans in respect of those 230 buses which were alledged to have been sold.

Early Reports indicated that they will be selling the remaining 170 buses also. But the position seems to have changed. Now, it appears that they may propose to sell only some buses which are more than 5-7 years old, and retain the remaining buses. Whatever be the case and the number of buses on sale, the first thing will have to be, that they have to clear Public Sector Bank Loans,PROPORTIONATE TO THE NO. OF BUSES SOLD.

Allegations of Mr. Chevireddy Bhaskar Reddy, YSRCP MLA from Chandragiri, that KESINENI IS DOING A MALLYA.

Reputed English Newspaper -Times of India Print Edition, Vijayawada , dated 11th April 2017, Page 3 has published two reports.

1. Titled: Nani mulls selling luxury buses to clear bank loans.

2. Kesineni is doing a Mallya, says YSRC. This allegation is by Mr. Chevireddy Bhaskar Reddy, YSRCP MLA, from Chandragiri Constituency, near Tirupati. The reference to 'Mallya' is a comparison to Mr. Vijay Mallya of United Breveries and Kingfisher Airlines who evaded Bank loans to the tune of about Rs. 80 billion and fled to (resettled in?) London for safety.

This comparison by Mr. Chevireddy Bhaskar Reddy is ridiculous. The Bank Loans outstanding o/a Kesineni Travels is reported to be just Rs. 40 crore (.4 billion) as against 80 billion of Mr. Vijay Mallya. Besides, there is no proof that Kesineni Travel is a Willful Defaulter. Such comparisons ought not to have been made by YSRCP MLAs.

SANCTION OF LOANS TO PRIVATE TRAVEL OPERATORS BY PUBLIC SECTOR BANKS

This ought not to have been done by Public Sector Banks on a large scale, because RUNNING LUXURY BUSES ONLY FOR 'CONTRACT CARRIAGES' is not economically viable in Andhra Pradesh. A few buses will be sufficient for the purpose. The businesses run by Private Travels in Andhra Pradesh is by inference ILLEGAL, because the buses are run as Stage Carriages, in connivance with SOME Road Transport, Police, and APSRTC Officials. For illegal and illicit businesses, though they may not be officially and formally declared as 'illegal', Public Sector Banks cannot extend loans on large scale, doing Credit Appraisal, taking into consideration, their viability as Stage Carriers. TOP MANAGEMENTS OF PUBLIC SECTOR BANKS MUST OPEN THEIR EYES, BECAUSE SIMILAR THINGS MAY BE GOING ON NOT ONLY IN VIJAYAWADA AND HYDERABAD, but all over India.

News report: "RTC Staff remind Vijayawada MP On Payback Time"

RTC Employees' Union General Secretary is reported to have said:

"...Nani and other Private Travel Operators have earnd crors of rupees by operating buses on profitable routes but APSRTC incurred huge losses as it had to run services in villages and remote areas. They earned crores all these years. It is payback time for Nani. ..."

"...Nani should hand over all his buses to RTC free of cost. 'this will save the Corporation a lot on purchasing the new buses..."

ONE SUGGESTION WHICH CAN BE GIVEN AT THIS JUNCTURE

ybdonkey's views which are not intended to be imposed on others

Handing over buses to RTC free of cost, as suggested by RTC Unions does not appear to be practicable.

Both the present ruling party TDP, and the past ruling parties Congress-YSRCP-Kiran Congress have all encouraged Private Travels at the expense of Public Sector APSRTC. Anyway, it is all history, and spilt milk.

Even now we cannot believe that, Mr. Chandra Babu Naidu, the present Chief Minister of Andhra Pradesh will be interested to do justice to APSRTC, or the displaced workers of private travel workers, or the Public Sector Banks for their NPAs. Yet, if he is sincere, he can appoint an Expert Committee of Independent persons such as Judges (Sitting/Retired), Valuers-Survyors-Engineers), Private Labor Representatives, RTC Labor Representatives, RTC Management Representatives, Pvt. Travel Owners Representatives, Public Sector Bank Representatives and other stake holders.

2. Market Value, Forced Sale Value (Auction value) of the 170 buses is to be arrived at.

3. Start a New Public Sector RTC with a suitable name such as 'New Andhra SRTC', State Government providing Seed Capital to the New Andhra SRTC. APSRTC also may be permitted to invest into the venture.

4. Convince the Lending Banks for a Novation of their Loans, marking repayment of the loans payable by Kesineni Travels as REPAID , and introducing "New Andhra SRTC" as the new Debtor, with rescheduled instalments. In other words 170 bus loans of M/s. Kesineni Travels are to be transferred to the New Andhra SRTC.

5. New Andhra SRTC has to absorb the employees working on the 170 buses, continuing the same salaries which were being drawn by the Private Travel Employees prior to closure. The New Andhra SRTC can raise their employee wages, when it starts earning profits.

6. New Andhra SRTC should be issued Stage Carriage Permits, and- All India Permits for Inter-State Routes as per rules

7. We cannot have monopolies, because monopolies can breed inefficiencies and complacencies. There should be competition among Public Sector RTCs. APSRTC should be able to compete with the New Andhra SRTC.

To continue adding / deleting / modifying. सशेष. ఇంకా ఉంది.