RTC unions get 16% hike, stir off
Sets up officials panel to suggest ways to make RTC profitable again
The TSRTC strike called by its unions from June 11 was withdrawn on Sunday after Chief Minister K. Chandrasekhar Rao approved an increase of 16 per cent in the pay of employees as interim relief (IR).
The salary bill of TSRTC will increase by `200 crore at the rate of nearly `16 crore per month. TSRTC already has a debt burden of `3,000 crore on which it has been paying `250 crore interest per year. The unions had threatened to go on strike and hectic negotiations were held on Sunday between the state government and the unions to avert the strike. The Cabinet sub-committee comprising ministers K.T. Rama Rao, T. Harish Rao, Etela Rajender, G. Jagadish Reddy and P. Mahender Reddy invited the union leaders for talks. The unions demanded 25 per cent IR till fitment (full salary) is decided, to withdraw the strike. The ministers met the CM at Pragathi Bhavan with this demand. The CM agreed for 16 per cent IR to be applicable from July. He promised to give fitment or the fullfledged salary hike later, based on the recommendations of the high-level committee to be appointed by the state government soon on strengthening RTC.
The salary bill of TSRTC will increase by `200 crore at the rate of nearly `16 crore per month. TSRTC already has a debt burden of `3,000 crore
The state government is mulling to split TSRTC into four corporations, one for each zone of the state, to minimise losses and save the debt-ridden organisation from closure.
The government asked officials to study the RTC model in neighbouring Karnataka and Tamil Nadu where the corporation was divided into different units. The RTC was divided into seven units in Tamil Nadu and four in Karnataka.
The TSRTC has a debt burden of `3,000 crore on which it is paying `250 crore interest per year.
Chief Minister K. Chandrasekhar Rao has directed officials to constitute a high-level committee with senior officials and transport experts to suggest reforms to be brought in TSRTC to wipe out the losses and bring corporation into profits.
The terms of reference (ToR) for the committee are likely to be announced within a week. One of the ToR is likely to be studying the method of dividing the RTC in TN and Karnataka.
There are proposals to make the GHMC unit of the RTC as a separate corporation. The undivided districts of Ranga Reddy, Medak and Mahbubnagar are proposed to be clubbed as the second corporation, Nalgonda, Khammam and Warangal as the third and Adilabad, Nizamabad and Karimnagar as the fourth.
Of the 97 depots of the RTC, only 11 are running
We urge government to get the report from the high-level committee on RTC quickly and announce fitment as promised.
— E. ASHWATHAMA REDDY, Telangana Mazdoor Union leader
in profits. After the formation of the state, losses could be reduced in 54 other depots.
Based on the recommendations of the committee, the government is planning to extend fiscal and tax incentives to TSRTC to recover some of its losses and become financially stronger.
The Cabinet sub-committee who addressed the media on Sunday gave hints that the RTC staff should be prepared to bring such reforms to make corporation financially viable.