Andhra Pradesh government is reportedly examining the proposal by Reliance company to take over the APSRTC. When the Congress was in power in the undivided state, a year ago Reliance had reportedly proposed taking over the RTC with an assurance to improve transport facilities in the state.
Currently, in Andhra Pradesh, the RTC is reportedly suffering a loss of Rs 100 crore each month. After the bifurcation, APSRTC had reportedly accumulated losses of Rs 24,000 crore which has now reached Rs 24,600 crore. AP transport department officials have said that there are only two alternatives before the government to rescue APSRTC.
Either the government would have to take it over, or the RTC will may be passed over to a private firm. Reliance reportedly proposed to continue all drivers, conductors and technicians with a pay of Rs 25,000 to the drivers and conductors who currently earn Rs 12,000 at present but refused to employ clerks and middle level staff, for whom VRS may be an option. But this proposal may not get through that easily!