Govt bars Road Transport Corporations from buying new buses, releases aid to pay employees

The state government on Tuesday released Rs 423 crore aid to the four Road Transport Corporations (RTC) while laying down several conditions, including not to purchase any new bus in the present financial year.

The managing director of Karnataka State Road Transport Corporation (KSRTC) had sought Rs 1,015.85 crore towards payment of salaries for 1.25 lakh employees in KSRTC, BMTC, NEKRTC and NWKRTC for months of June to November.

The corporations, which descended into a crisis after lockdown cut their revenue, are still finding it difficult to make ends meet as ridership remains poor. The government had released Rs 466 crore in July towards salary and student bus pass expenditure and another Rs 426 crore in the same month towards distributing salary.

The order allocated Rs 135 crore to KSRTC, Rs 229 crore to BMTC, Rs 87.06 crore to NWKRTC and Rs 80 crore to NEKRTC.

"The funds should be used to meet 75% of basic pay and dearness allowance of officials/staff. Transport corporations have to generate the remaining percentage of the payment through their own resources," he said, adding that the money can't be used to pay over time and other allowances.

Further, the RTCs have been directed to cut down unnecessary posts and surrender the posts that are not needed. "No proposal shall be made for procuring new buses in the present financial year. Spare parts shall be bought only on based on need," it stated.

The government has said it will not compensate the 50% of the cost of the bus passes given to students as well as the cost of other subsidised bus passes it has announced.