₹ 120 crore aid to RTC to overcome crisis

The State government will infuse ₹ 120 crore into Telangana State Road Transport Corporation as part of measures to bail it out from financial crisis on account of COVID and clear the 50 % arrears in salaries of crew for two months.

Chief Minister K. Chandrasekhar Rao directed Principal Finance Secretary K. Ramakrishna Rao to immediately release the amount, a release of the CMO said.

He gave the instructions at a meeting to discuss the guidelines to ensure job security of RTC staff. It was decided on the occasion to resume operation of 50 % fleet of the corporation in Hyderabad.

A release quoting Mr. Rao said the RTC slipped into problems due to COVID at a time when the entity had begun to make profits following incentives given by government. Yet, the government was determined to revive the corporation.

He said the State government was protecting public sector undertakings against all odds. It was providing job security to lakhs of employees in the undertakings. The government opposed enhancement of private participation in power sector though some forces made attempts. On the other hand, the government regularised the services of thousands of contract workers in the sector.

The Centre was privatising public sector units, including the Life Insurance Corporation of India. But, the State government did nothing of the sort and protected the PSUs despite facing severe financial crunch.

“I will not sleep till the RTC was put back on rails. I will see it survived as long as I live,” the Chief Minister remarked.

He also said a large number of families were dependent on RTC staff. Moreover, the corporation provided very cheap transport to poor. Hence, the government wanted to protect the RTC without considering profit or loss. The government will support the corporation financially.

The meeting saw officials informing Mr. Rao that the corporation had been incurring losses for some months because of poor occupancy due to fear of COVID and increase in usage of personal vehicles of commuters. In his response, Mr. Rao asked officials to analyse the right solutions that will see the corporation return to pre-COVID days.

He complimented the RTC for introduction of cargo services as it enjoyed public patronage. He expressed hope that the RTC will earn profits through cargo services like the railways. It was significant that the corporation booked a million cargo parcels within a short time of commencement of services, he said.

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Printable version | Apr 23, 2021 9:19:12 PM |

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