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  Metros   Mumbai  07 Nov 2018  MSRTC receives Rs 607 crore from govt

MSRTC receives Rs 607 crore from govt

Published : Nov 7, 2018, 1:42 am IST
Updated : Nov 7, 2018, 1:42 am IST

Corporation’s concessional schemes such as free passes cost it Rs 2K crore annually.

Diwakar Raote
 Diwakar Raote

Mumbai: Certain schemes of the cash-strapped Maharashtra State Road Transport Corporation’s (MSRTC) — also known as the ST Corporation — such as providing free passes and tickets at a concession to senior citizens, schoolgirls and Divyangs, am-ong others, cost it Rs 2,000 crore annually.

The state government has paid Rs 607 crore for these schemes on Tuesd-ay, said a senior official in the ST Corporation. The fund will help to repay bank overdrafts (OD), which was taken to rele-ase the salaries, bonuses and arrears of one lakh ST employees.

The state government is funding around 24 sche-mes for ST passengers. About 38 crore people availed themselves of 24 ST bus schemes in 2017-18.

The Rs 607 crore will take care of the payment of employees, fuel expenditure and other ST Corporation expenses. This was the last instalment of payment for the financial year 2017-18.

From next year onw-ards, the payment for the schemes will be made on time resulting in no dues of the ST over the state government, a source said.

The ST Corporation ear-ns around Rs 8,000  crore annually while its expenditure is of Rs 8,600 crore.

An official said that the state government has owed the ST Corporation dues for the last couple of years, and the former is trying to manage its accounts with the several taxes that are levied on the corporation.

“The payment of Rs 2,000 crore for the year 2018-19 will be made to the corporation before ending of the financial year 2018,” he added. The ST has paid a bonus of Rs 50 crore to its one lakh employees. In addition to this, it has cleared the arrears of two years by taking OD on the banks.  

MSRTC’s vice-chairman and managing director Ranjit Singh Deol said, “The state government has released 607 crore for 24 concessional schemes. The amount has been credited to the corporation’s account.”

Transport minister Diwakar Raote said that Rs 607 crore has been released to the ST corporation for the concessional schemes. There has been no backlog of the ST corporation, he said. The payment of concessional schemes for 2018-19 will also be released soon.

Tags: msrtc, diwakar raote