Andhra Assembly passes bill to merge APSTRC with state govt
Despite protesting for two months, Telangana Road Transport Corporation employees may not have got their demands met, but the dream of Andhra RTC employees' dream will soon come true. The Andhra Pradesh Assembly on Monday passed a bill pertaining to the merger of the Andhra Pradesh State Road Transport Corporation (APSRTC) with the government. ‘Absorption of Employees into Government Services Bill 2019’ was passed during the winter session of the assembly and it will be implemented from January 1, 2020.
About the passage of this bill, Andhra Pradesh Chief Minister Jagan Mohan Reddy said, “Though it would (merger) put an additional burden of Rs 3,600 crore per annum on the state exchequer, it will bring happiness to 52,000 employees and their families.”
The Rs 3,600 crore expenditure would be used to pay, DA, HRA, allowances and incentives, gratuity, provision, leave encashment provision and more to 52,000 employees APSRTC employees.
Transport Minister Perni Venkatramaiah introduced the bill in assembly on Monday. Andhra CM had promised APSRTC merger with the government before 2019 Andhra Assembly elections. The previous Chief Minister Chandrababu Naidu was against such a move.
According to the legislation brought in 1997 by the TDP government -- prohibition on absorption of employees working in PSUs into public service under Act 14 of 1997 -- made it difficult to bring this law, which is why new legislation had to be enacted.
The APSRTC, founded in 1958, currently has outstanding liabilities of Rs 6,938 crore and a cumulative debt of Rs 3,450 crore, while the Corporation has been making a monthly loss of Rs 100 crore.
In the adjacent state, Telangana RTC employees had protested for about two months, demanding a merger with the state government, with a salary hike. The protest commenced on October 5 ended on November 25 after a meeting of TSRTC employees unions' Joint Action Committee (JAC) meeting with the state authorities.
Later the unions said they were willing to drop the merger demand if it becomes a hurdle for the government to hold talks with them.
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