Maharashtra government releases Rs 1,000-cr aid to MSRTC

Over 1,000 MSRTC buses and staff have been helping the BEST run local services due to the lockdown. PIC/Ashish Raje

The Maharashtra government on Tuesday said they were releasing R1,000 crore financial assistance to the Maharashtra State Road Transport Corporation (MSRTC) and will clear the pending two months' salary till October 31 by this week, before Diwali. Two employees - a bus driver and a conductor - had committed suicide after not receiving their salaries for three months.

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"We had meetings this morning and the Maharashtra government has agreed on a Rs 1,000 crore package that can well run the show for the next six months now. The loss in the lockdown was massive, but the numbers are slowly coming back as passengers' services are being revived. This financial package will help the MSRTC for the next six months till things stabilise," Maharashtra Transport Minister Anil Parab said.

Asked how will the Rs 1,000 crore be spent, whether all of it on salary or also on running the services, Parab, who is also the chairman of the MSRTC, said officials will plan a road map to revival. "The money is in and salaries will not be an issue for the next six months. I appeal to employees to have patience, not take drastic steps and be assured that the government is firmly behind them," he added.

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On Monday as the news of two employees committing suicide emerged, the state government and MSRTC worked out a plan and deposited one month's salary overnight in employees' accounts with the promise of giving another month's salary before Diwali. "We are keeping the promise today and giving all three months' pending dues before Diwali," Parab said.

Last month, Parab said they had sought R3,600 crore from the Maharashtra government for payment of salaries and other essential expenses. However, since it was not possible for the government, too, to raise so much money due to losses, MSRTC was contemplating raising money through external sources, he added.

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