The AP State Road Transport Corporation will continue to operate as a separate entity after merger of its staff with the government by means of creating AP Public Transport Department (APPTD) to absorb them.

This is because the clauses in the Road Transport Corporations Act 1950 prevent liquidation of the State Road Transport Corporations.

On liquidation of a Corporation, the Act clearly says that “no provision of any law relating to the winding up of companies or corporations shall apply to a Corporation and no Corporation shall be placed in liquidation without the prior approval of the Central Government.”

“As of now, the government is not planning liquidation of the Corporation. The decision is to keep the APSRTC which will continue to operate its fleet of buses,” M.T. Krishna Babu, Principal Secretary, Transport Department, told The Hindu on Thursday.

The fact that the assets and liabilities of the State Road Transport Corporations of A.P. and Telangana have not been divided so far, is yet another hurdle for liquidation.

According to the Act, in the event of a Corporation being placed in liquidation, its assets, after meeting the liabilities, if any, should be divided among the two governments.

Mr. Babu said seeking the Centre’s nod for liquidation and the division of properties and liabilities are long-drawn processes, the government chose to go ahead with this option.

When asked when would the bus fare revision regulatory commission, proposed by the expert committee, be in place and if it would mean an immediate hike in bus fares, he merely said that the expert committee wanted expeditious constitution of the regulatory body.

New Motor Vehicle Act

On the new Motor Vehicle Act that came into effect on September 1 with harsh clauses like hefty fines and even imprisonment for violators of traffic rules, Mr. Babu said while other mandatory issues relating to vehicle registrations and other aspects were already in force, the Andhra Pradesh government had not yet taken a decision on implementation of the new penalties. “We are just examining the issue. The States have certain discretion and we are exercising that,” he said.