Two panels to study APSRTC merger with state government

The two committees will coordinate among themselves and come up with the best policy for merging the RTC with the AP government in two months.
For representational purposes (Photo  | EPS)
For representational purposes (Photo | EPS)

VIJAYAWADA: The State Cabinet, which met here under the leadership of Chief Minister YS Jagan Mohan Reddy on Monday, gave in-principle nod to the proposal to merge the cash-strapped AP State Road Transport Corporation (APSRTC) with the government. The government also decided to constitute two committees to look into the possibilities of the merger.

Announcing the Cabinet decisions after the marathon meeting on Monday, Transport and Information and Public Relations Minister Perni Venkataramaiah said that of the two committees, one committee will be headed and monitored by transport and finance ministers and the other will have technical experts.

The two committees will coordinate among themselves and come up with the best policy for merging the RTC with the government in two months’ time after their constitution.

The minister said that RTC employees had met Jagan Mohan Reddy during his padyatra. Taking their plight into consideration, Jagan had assured of merging the RTC with the government. Soon after taking charge as the CM, Jagan started the exercise, he said.

Commenting on the financial crisis of the RTC, Venkataramaiah said the sharp rise in diesel prices was one of the major factors that pushed the corporation into crisis. Officials concerned are directed to study the possibilities of procuring funds to add electric buses to RTC fleet to reduce the financial burden.

At present, the losses of RTC stood around Rs 6,373 crores and staff strength is 53,000. Besides that, former Chief Minister N Chandrababu Naidu had diverted Rs 2,900 crores of the Provident Fund (PF) amount of the employees towards payments of loans taken by the RTC. Necessary measures will be taken to make use of the amount for its actual purpose, the minister said.

Talks inconclusive

Earlier in the day, the APSRTC management held talks with the Joint Action Committee (JAC) leaders at the RTC House here. The three-hour-long meeting chaired by vice-chairman and managing director NV Surendra Babu remained inconclusive as the JAC leaders urged the management to give in writing the assurance of fulfilment of their 26 demands mentioned in the strike notice served on May 9.

Initially, the JAC leaders were planning to meet the Chief Minister at the Secretariat, but couldn’t make it.
“During the meeting, the management agreed for compassionate appointments, regularisation of services of drivers and conductors who completed 240 days service period, payment of medical bills after employees undergoing treatment at referral hospitals and preparation of digital charts,” said JAC convener P Damodar Rao. However, the two sides could not come to a conclusion on some other issues.

The JAC members will meet Surendra Babu at his chambers on Tuesday again to discuss about their unresolved demands. The demands include promotion of eligible staff of all categories, proposal to increase hired buses, double pay for double duties to the staff, increase in pension, releasing of pending Credit Cooperative Society (CCS) loans and others, he added.

“After Tuesday’s talks, we will announce our decision on whether to go ahead or not with our proposed strike from July 13,’’ the JAC leader asserted.

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