Maharashtra Government sanctions 1000 crore fund for the ST Corporation

The State Transport (ST) corporation was not operational due to the lockdown, and even in these times, the passenger count remains to be limited. The approved fund of INR 1000 crore will be used to to pay the salary arrears of ST employees.

Maharashtra Government sanctions 1000 crore fund for the ST Corporation

The state government of Maharashtra has decided to sanction a fund of INR 1,000 crore for the arrears of salaries that the Maharashtra State Transport (ST) Corporation owes its employees. The decision was taken at a cabinet meeting chaired by Chief Minister Uddhav Thackeray on Wednesday, December 2, 2020.

As per reports published earlier, a sum of INR 120 crore was sanctioned in October 2020 from the contingency fund as an advance to pay the salaries of ST Corporation employees, and this was to be utilised until the end of October 2020. However, as per revised regulations, the amount which was previously sanctioned will be considered as advance payment and deducted from the new fund. Therefore, ST corporation will now receive the remaining INR 880 in six monthly instalments.

This amount will be approved as a supplementary demand in the winter session. Out of the remaining funds, the government will allocate INR 150 crore per month for salaries from November 2020 to March 2021 and INR 130 crore for April 2021.

The corporation has more than 99,000 employees and records state that a fund of INR 1700 crore has already been sanctioned by the government in the form of concessions. Out of the total expenditure of the corporation, 40 per cent is said to be spent on salaries and 32 per cent on fuel.

Due to the ongoing coronavirus lockdown since March 2020, the transport service of ST Corporation was not functional for safety reasons, which has adversely affected the income of the corporation. With business shut for months, the corporation found it difficult to pay the salaries of the employees on time. Moreover, despite the government permitting activities under the new norms, the passenger count has not increased and remains to be limited due to fears in the minds of the people. Keeping these concerns in mind and considering the loss incurred by the ST Corporation, the government has been decided to provide financial assistance once again.

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