Nearly 53,000 employees of the RTC will now become state government employees. Today a formal decision to this effect will be taken by Jagan Mohan Reddy in the Andhra Pradesh cabinet. This merger is one of the promises made by Jagan during his Padayatra and election campaigning.
On Tuesday, Jagan gave in-principle approval to the report submitted by the six-member Committee on it headed by former IPS C Anjaneya Reddy, at CM Camp office at Tadepalli in Guntur. The meeting was attended by Transport Minister Perni Nani, Finance Minister B Rajendranath Reddy and officials from APSRTC.
Not only merging the Andhra Pradesh State Road Transport Corporation will emerge with the government, a separate department called the Public Transport Department, will be created. This merger results in Rs 3,600 crore additional financial burden on the state government every year. After the approval of the cabinet, the APSRTC employees will be considered as government employees.