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Wednesday 22 August, 2018, 8:09 am
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KCR to follow Karnataka, break up RTC into 4 units

Hyderabad: The state government is mulling to split TSRTC into four corporations, one for each zone of the state, to minimise losses and save the debt-ridden organisation from closure.

The government asked officials to study the RTC model in neighbouring Karnataka and Tamil Nadu where the corporation was divided into different units. The RTC was divided into seven units in Tamil Nadu and four in Karnataka.

The TSRTC has a debt burden of Rs 3,000 crore on which it is paying Rs 250 crore interest per year.

Chief Minister K. Chandrasekhar Rao has directed officials to constitute a high-level committee with senior officials and transport experts to suggest reforms to be brou-ght in TSRTC to wipe out the losses and bring corporation into profits.

The terms of reference (ToR) for the committee are likely to be announ-ced within a week. One of the ToR is likely to be studying the method of dividing the RTC in TN and Karnataka.

There are proposals to make the GHMC unit of the RTC as a separate corporation. The undivided districts of Ranga Reddy, Medak and Mahbubna-gar are proposed to be clubbed  as the second corporation, Nalgonda, Khammam and Warangal as the third and Adilabad, Nizamabad and Kari-mnagar as the fourth.

Of the 97 depots of the RTC, only 11 are running in profits. After the formation of the state, losses could be reduced in 54 other depots.

Based on the recommendations of the committee, the government is planning to extend fiscal and tax incentives to TSRTC to recover some of its losses and become financially stronger.

The Cabinet sub-committee who addressed the media on Sunday gave hints that the RTC staff should be prepared to bring such reforms to make corporation financially viable.

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