Andhra Pradesh: RTC employees to be absorbed in Govt from Jan 1

Amaravati: State Legislative Assembly passed the AP State Road Transport Corporation (Absorption of Employees into Government Services) Bill 2019.

Chief Minister YS Jagan Mohan Reddy announced in the House that all RTC employees will be considered as government staff from January 1, 2020 and the retirement age will be increased from 58 years to 60 years.

It has been a long cherished dream of the employees and their demands were pending since long. We are happy to announce that their dreams have come true during our term, the Chief Minister told the House.

With the merger, 51,488 employees of RTC will be absorbed into the State Government and will come under the newly incorporated Public Transport Department, under the administrative control of Transport, roads and Buildings Department. The retirement age will also be enhanced from 58 to 60 years, he said.

The government will have to spend Rs 3,600 cores per annum towards salaries of the newly absorbed employees, he said.

The Bill, tabled by Transport Minister Perni Venkataramaiah (Nani), said that a Committee headed by a retired IPS officer C Anjaneya Reddy to look into various issues including the merger, feasibility of substituting the present buses with electric buses among other issues, has submitted its report and recommendations.

The APSRTC was formed under the Road Transport Corporation Act, 1950 by GO Ms No 36, Home (Transport) department dated January 6, 1958 with a contributory capital of Rs 61.07 cr by Government of India and contributory capital of Rs 140.2 cr by government of AP, in the ratio of 31:69 respectively. The Corporation is mandated to provide safe, reliable, punctual and comfortable public transport services at economical fares.

After bifurcation of the united AP in 2014, the APSRTC has a fleet of 12,027 buses operating from 108 major and 311 minor bus stations. It provides transport for 14,123 villages, approximately 81 percent of villages in the state.

The Corporation spending Rs 44.72 per Km as cost of operations, whereas the revenue earned is Rs 38.19 per Km leaving a deficit of Rs 6.53 per km. It has outstanding liabilities of Rs 6,938 cr as on September 30, 2019 and losing Rs 100 cr every month. The APSRTC has been borrowing funds from banks and other financial institutions, resulting in a cumulative debt of Rs 3450 cr and interest burden of about Rs 320 Cr per annum.

At least 41,179 employees in 12 categories of Operations Department, 6,795 in 22 categories under Mechanical Engg Department, 148 in 9 categories under MED (Vul) department, 822 in 15 categories under Personnel Department, 718 in 10 categories under Finance Department,

62 in 14 categories under Civil Engg. Department, 5 in 5 categories under Statistical Department, 86 in 18 categories under Medical Department, 12 in 5 categories under Purchase department, 213 in 9 categories under Stores department, 1051 in 10 categories under security department, totalling 51,091 employees in the APSRTC, excluding the officers. There are another 397 employees working at various officers level. By including the officers, the total strength of the APSRTC is 51,488 and all of them will be absorbed by the state government into the Public Transport Department.

Still, there are vacancies need to be filled in the Corporation. It has recruited only 51,488 employees against the sanctioned strength of 58,953 employees. But, the state government has confined to create the number of posts in the PTD to existing 51,488 employees. At the same time, the government assured that the current liabilities which are due to employees are to be paid on priority basis.

The net surplus available would be Rs 687 cr in 2021-21 only after discharge of current liabilities Rs 3,688 Cr in 2019-20 and 2020-21. After discharge of current liabilities, the net surplus that can be transferred to Govt from the Financial Year 2021-22 onwards. Further, the scope for transfer of surplus funds from APSRTC to govt can be estimated reasonably for 2022-23 and subsequent years, the Minister informed.