Tamil Nadu government would replace buses operated by State Transport Undertakings which were more than 10 years old and a sum of Rs 600 crore would be infused as share capital, Deputy Chief Minister O Panneerselvam said today.
"In 2018-19, the State government will infuse share capital of Rs 600 crore in state transport undertakings for purchasing and inducting 3,000 new buses," he said in his budget speech in the assembly.
With the 2,000 new buses sanctioned in 2017-18 and with the proposal to induct 3,000 new buses, the government would replace all the 4,593 buses that have been in use for more than 10 years, he said.
Stating that the government was committed to provide efficient and effective public transport system, he said, "the general price rise and increase in salary adversely affected the operations of state transport undertakings."
It may be recalled that transport workers in December last, went on an indefinite strike pressing for various demands including wage revision.
Panneerselvam said in 2017-18, the state government released Rs 2,519.25 crore to the STUs to tide over the severely stressed financial position and to settle the retirement benefit dues to pensioners, pending dues to existing employees.
He said a sum of Rs 2,717.34 crore has been allocated for the transport department which include Rs 799.25 crore as subsidy for free bus passes provided to students and senior citizens.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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