TN govt sanctions Rs 1,137.97 crore to clear pending benefits of transport staff

Chennai, Aug 19 In a move aimed at addressing mounting unrest among employees of State Transport Undertakings (STUs) over delays in terminal benefits, the Tamil Nadu government has sanctioned Rs 1,137.97 crore as a Ways and Means Advance to settle dues pending between July 2023 and April 2024.

According to a Government Order issued by the Transport Department, the sanctioned amount will cover key retirement-related benefits, including provident fund, gratuity, surrender leave salary, and commutation payments.

The relief is intended for retired, voluntarily retired, and deceased employees across all state-run transport corporations.

The funds will be distributed among eight transport corporations, including the Metropolitan Transport Corporation (Chennai), the State Express Transport Corporation, and the Tamil Nadu State Transport Corporations in Villupuram, Salem, Coimbatore, Kumbakonam, Madurai, and Tirunelveli.

Of the total allocation, the largest share has gone to TNSTC Kumbakonam, which will receive Rs 235.63 crore, followed by Rs 157.81 crore to the Metropolitan Transport Corporation.

The order specified that the sanctioned amount would be deposited with the Tamil Nadu Transport Development Finance Corporation for onward disbursement to employees.

The financial assistance, however, is structured as a loan, carrying an annual interest rate of 12.8 per cent.

The advance must be repaid by the STUs during the 2025–26 financial year.

The Transport Department also directed the Managing Directors of all beneficiary corporations to submit detailed reports on the disbursement of funds within a week.

The move comes in response to growing demands from workers' unions, who have been pressing the government to clear long-pending dues owed to employees and their families.

While the assistance is expected to bring immediate relief to thousands of beneficiaries, the high interest burden and repayment obligation may continue to weigh heavily on the already debt-ridden state transport corporations.

Analysts note that this measure is likely a reprieve, and long-term reforms will be needed to address the chronic financial challenges facing the state's transport sector.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor