Financial Assistance – Release of Rs.250.00 Crores (Rupees Two Hundred and Fifty Crores only) towards RTC (Telangana) as additional funds after adjustment of Motor Vehicle Tax Dues – Administrative sanction – Orders – Issued
Vice Chairman & Managing Director, Andhra Pradesh State Road Transport Corporation stated that the RTC in Telangana, presently facing financial crisis with an accumulated loss of Rs.989.08 Crores besides the loans repayable to Banks and other Financial Institutions outstanding to the tune of Rs.2109.56 Crores as on 31-03-2014. He has further stated that due to huge cash flow deficit, the payments to their Credit Cooperative Society (CCS) is outstanding for remittance for the months from Apr.2014 to Jun.2014, therefore requested the Government for Financial Assistance of Rs.250 Crores for survival of the RTC in Telangana State at stake due to paucity of funds and to continue to provide efficient services to the public.
Finance Department has issued Budget Release Order for Rs.250,00,00,000/- (Rupees Two Hundred and Fifty Crores only) Non-Plan from the Budget Estimates provision 2014-15 towards additional funds releases to be made to RTC in Telangana (after adjustment of MV tax dues) against the concessions under grant in relaxation of Treasury Control & Quarterly Regulation orders pending provision of funds by way of obtaining supplementary grants in current financial year 2014-15.
The Government after careful consideration of the matter, hereby accord administrative sanction for release of an amount of Rs.250.00 Crores (Rupees Two Hundred and Fifty Crores only) additionally, after adjustment of the Motor Vehicle Tax dues and in relaxation of Treasury Control & Quarterly Regulation orders and also pending provision of the funds by obtaining supplementary grants in the current financial year at appropriate time. The releases to be made to RTC in Telangana against the concessions under grant and also release of Rs.250 crores includes Rs.218.80 crores pertaining to the year 2012-13 and the balance of Rs.31.20 crores as advance for the year 2013-14.
4. The amount sanctioned above shall be debited to the Head of Account “3055 – Road Transport – M.H. 190- Assistance to Public Sector and other undertakings – SH (04) – Assistance to APSRTC towards reimbursement of concessions extended to various categories of citizens – 310/312 – Grants in Aid / Other Grants-in-Aid”.
5. The Assistant Secretary to Government and Drawing and Disbursing Officer, Transport, Roads & Buildings (OP) Department is requested to draw and disburse the above amount towards RTC (Telangana) by way of cheque in favour of Vice-Chairman & Managing Director, Andhra Pradesh State Road Transport Corporation, Hyderabad.
6. This order issues with the concurrence of Finance (EBS.X) Department vide their
U.O.No.1710/A2/EBS-X/2014, Dated: 20/09/2014.
G.O.RT.No. 60. Dated: 22/09/2014
- From the Vice Chairman & Managing Director, APSRTC,Lr.No. B&F/TS/F5/181(12)/2014-15-FD, Date: 12-06-2014.
- 2. O.Rt.No.520, Finance (EBS-X) Department, Dated: 20/09/2014.
In his Letter From the VC & MD, APSRTC, Hyderabad Letter No.MD Peshi/Gen(1)/14, the Vice Chairman & Managing Director, Andhra Pradesh State Road Transport Corporation (APSRTC) has stated that in pursuance of the A.P.Reorganisation Act and bifurcation of State on 2nd June, 2014, the Corporation is also due to be bifurcated as Telangana State Road Transport Corporation (TSRTC) and the residual APSRTC.
2. According to Section 68(1), the Companies and Corporations specified in the 9th Schedule constituted for the existing State of Andhra Pradesh shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of the Sections.
3. The Circular Memo. No.3685/INF(SRC)/2014, Dated 29/05/2014 of Industries & Commerce Department, states that “All the listed and unlisted Schedule IX entities are requested to ensure that 31st May, 2014, the Organisation must have two independent operational divisions to deliver services in the respective States.”
4. The Vice Chairman & Managing Director, Andhra Pradesh State Road Transport Corporation has, therefore, proposed that Sri G.V.Ramana Rao, Executive Director (Operations, MIS & AM) may be posted as Joint Managing Director in accordance with the directive given in the above Circular Memo apart from the fact that he is actively associated in the demerger activities and contributed immensely to the bifurcation process.
5. After careful consideration of the matter, Government hereby order G.O.Rt.No. 1 Dated: 18 June 2014 that Sri G.V.Ramana Rao, Executive Director (Operations, MIS & AM) (who hails from Karimnagar District, Telangana State), APSRTC is placed in Full Additional Charge (FAC) of the post of Joint Managing Director with immediate effect, so as to manage service delivery in the Corporation, in view of State bifurcation, in accordance with the directive given in the Circular Memo.
No.3685/INF(SRC)/2014, Dated 29/05/2014 of Industries & Commerce Dept.
6. The Vice Chairman & Managing Director, Andhra Pradesh State Road Transport Corporation, Hyderabas shall take further necessary action in the matter accordingly. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)