TSRTC Bill Impasse: Nature of jobs, pensions will remain same, Telangana assures governor

The TSRTC would continue to function in its existing legal entity and form in all other respects after the absorption of its employees into the government.

By Nikisha Uddagiri  Published on  5 Aug 2023 10:47 AM GMT
TSRTC Bill Impasse: Nature of jobs, pensions will remain same, Telangana assures governor

Hyderabad: In order to break the logjam in the passing of bills in the Telangana Assembly, The state government has clarified its position on a number of issues raised by the governor Tamilisai Soundararajan about the proposed Telangana State Road Transport Corporation (Absorption of Employees into Government Service) Bill.

In a letter to the governor, the chief secretary A Shanti Kumari said, “The proposed bill does not need to mention the equity contributions of the state and central governments to the APSRTC, as the TSRTC would continue to function in its existing legal entity and form after absorption of its employees into government service. The equity contributions of the state and central governments to the APSRTC were Rs 140.2 crores and Rs 61.07 crores respectively.”

The proposed bill will only lead to the absorption of the TSRTC establishment into government service. The TSRTC would continue to function in its existing legal entity and form in all other respects after the absorption of its employees into the government.

The Corporation Board would continue as the apex body of the TSRTC under the provisions of the RTC Act, 1950, to manage the issues pertaining to equity, loan, grant or other assistance of the government of India and other related matters. Hence, it is not necessary to mention any of these details in the Statement of Objects and Reasons, the letter said.

The chief secretary also stated, “The nature of the TSRTC would not be changed until the bifurcation issues are settled. The issues pertaining to bifurcation are under examination by the government of India, after submission of views by both the state governments.”

The applicability of the provisions of the Industrial Disputes Act after absorption would be as per the provisions of the act. No provision in this regard is required in the proposed bill. The interests of the existing employees are best served by absorption into the state government, which in fact is one of the main objects of the proposed bill.

The chief secretary also clarified that there is no ambiguity in the proposed bill in regard to the applicability of pension provisions or other provisions applicable to government employees to the TSRTC employees, post their absorption.

Bill has provisions for employees’ pensions

Sections 4 and 5 of the bill empower the government to frame, by notification, such provisions in this regard as may be necessary in the interests of the employees. For example, the government could decide to grandfather the pension benefits of the TSRTC employees, or it could decide to provide them with a new pension scheme.

The chief secretary said that no employee would be put to any hardship in terms of salaries and allowances and that there is no bar to continue the various categories and cadres presently in TSRTC, by framing suitable service rules in that regard. For example, the government could decide to retain the existing pay scale of the TSRTC employees, or it could decide to give them a new pay scale.

Shanti Kumari concluded by requesting the governor to recommend the proposed bill to be introduced and considered in the Telangana State Legislature.

Responding to the protests, the governor of Telangana invited the leaders of the RTC unions to a video conference at 11:30 am on Saturday.



The governor said, “I am not against the draft RTC Bill. It is not my intention to delay the decision on the draft bill. But, the govt should not take any decision in a hurried manner. I am concerned about RTC employees.”

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