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Financial Daily from THE HINDU group of publications Friday, October 19, 2001 |
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Govt rules out support to transport body
Our Bureau
HYDERABAD, Oct. 18
THE Andhra Pradesh Government has made it clear to the striking workers of the A.P. State Road Transport Corporation that they would not provide any additional support to them and it was in their interest to resume work.
Meanwhile, commuters, across the State continue to suffer due to disruption in bus services. The Chief Minister, Mr N. Chandrababu Naidu, on Thursday said given the tight fiscal situation and the circumstances under which the State Road Transport Corpora
tion was functioning, the Government has already agreed to support them financially. ``And it was not possible for the Government to extend any further support to the corporation at this point of time.''
While a subsidy of Rs 100 crore in the form of tax concessions and Government support has already been announced in addition to the agreed renewal terms of wages which would cause additional burden of Rs 83 crore on the State exchequer, the Government ca
nnot extend any other support, he said.
``There was no option for the Government other than to consider a fare hike on one hand or support the corporation with additional financial support.''
While ruling out price hike, he said, ``The State financial position too does not permit additional hike.'' While deciding to constitute a panel to look into various possible options, including assuring the staff of reasoning out their view point, he wan
ted the unions to resume work and not to lose revenue and business to private operators.
It is estimated that each day's strike would cause a revenue loss of Rs 7 crore. Several rounds of parleys between the Government and employees unions remained inconclusive with the issue of hike in wages becoming the key demand from the RTC unions.
The strike has, in effect, paralysed life in the State despite Government efforts to mobilise additional buses.
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