Maharashtra State Road Transport Corporation gets ₹1000cr ‘MVA turbo charge’

The Maha Vikas Aghadi (MVA) Government on Tuesday announced a Rs 1,000 crore package to the Maharashtra State Road Transport Corporation for six months. Transport Minister Anil Parab had sought Rs 3,600 crore to keep the MSRTC afloat as its accumulated loss had surged at Rs 5,000 crore.

As reported by Free Press Journal, MSRTC with 18,000 buses has disbursed August month salary to 97,000 employees, and will give salaries of September and October by November 13.

Parab, who is the chairman of MSRTC, said this financial package will help the transport body get back track and will meet expenses such as salaries of employees and fuel costs for the next six months. "The number of passengers (travelling by ST buses) is increasing by the day, and with the cooperation of staffers, the MSRTC's finances will be brought back on track. The problems will be resolved with the state's financial assistance," he added.

"The state government has agreed to pay state transport employees pending salaries till October 30, before Diwali," Parab said.

MSRTC staff unions have claimed that two employees committed suicides at Jalgaon and Ratnagiri districts in the last two days, allegedly due to non-payment of salaries. The minister, however, refuted media reports that the MSRTC had acted only after these suicides, and appealed to employees not to take any extreme steps.

Parab said MSRTC is exploring an option of raising Rs 2,000 crore from the market. MSRTC proposes to increase revenue from freight transport by deploying 3,000 buses which are unfit for passenger transportation. Besides, MSRTC can get contracts for tyre remoulding and bodybuilding. Besides, MSRDC proposes to take contracts for bodybuilding and offer tyre remould services which will also help the undertaking to mop up additional income.

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Free Press Journal