Three-member committee report rules out possibility of MSRTC, state govt merger

The action taken on the report will be tabled in the lower house soon to announce that the merger of the MSRTC with the government was not possible

Mumbai: State cabinet on Wednesday accepted a three-member committee report on the merger of the Maharashtra State Road Transport Corporation (MSRTC) into government. The committee headed by chief secretary of the state had opined against the merger for the legal, administrative and financial reasons.

Advocate Gunaratna Sadavarte addresses MSRTC employees after the hearing was postponed during the ongoing strike at Azad Maidan. (Bhushan Koyande/ HT Photo)

After the Bombay High Court (HC) early this week asked the state government to take the decision on the report, which was tabled in the legislative assembly in the first week of March, the state cabinet accepted it on Wednesday. The action taken on the report will be tabled in the lower house soon to announce that the merger of the MSRTC with the government was not possible. The state is also expected to apprise the legislature over the steps taken to give respite to the MSRTC workers and later inform the court about the developments.

MSRTC workers had gone on strike in the first week of November for various demands including the merger of the corporation. Some of the workers are still agitating at their workplace across the state. While hearing the petition, the HC had appointed the three-member committee to consider the merger of the corporation. The committee report was submitted to the HC on February 25, 2022.

The committee has said that considering provisions in the Road Transport Corporation Act 1950, existing rules, and for administrative and practical reasons, the demand of the merger of MSRTC cannot be conceded.

“Similarly, the demand of giving status to the government employees to the staff members of the MSRTC cannot be accepted. Also, the demand of handing over the operation of the transport services of the corporation to the transport department of the state government cannot be accepted for administrative and practical reasons,” the report has stated.

The committee, in its report, has also recommended the government to financially support the corporation to ensure the timely release of the monthly salary of the employees. “Since the MSRTC is currently in poor financial condition, the state government should make budgetary allocation for the salary of the employees for the next four years,” the report has stated.