CHENNAI: The State government sanctioned Rs 2,446.47 crore as special financial assistance to clear pending terminal benefits payable to 6,867 retired, voluntarily retired and deceased employees of eight State Transport Undertakings from August 2024 to March 2026.
The move follows sustained pressure from trade unions, including a 62-day sit-in protest by the CITU, during which the issue was raised in the Assembly by a CPM legislator. Transport Minister SS Sivasankar held talks with CITU leaders and assured that full terminal benefits from May 2024 to March 2026 would be settled.
According to the Transport Department order dated February 18, the assistance will cover provident fund, gratuity, surrender leave salary and commutation dues, excluding contributions under the Contributory Pension Scheme.
The State government will provide an interest-free Ways and Means Advance of Rs 1,246.468 crore to the transport undertakings. In addition, the Tamil Nadu Transport Development Finance Corporation will mobilise Rs 1,200 crore as a loan to settle terminal benefits. The government will extend Rs 175 annually for 10 years to service the loan at a 7.5% interest rate.
A breakup shows the Tamil Nadu State Transport Corporation, Kumbakonam, accounts for the highest dues of Rs 487.65 cr, following by MTC, Chennai, with Rs 374.98 cr. Villupuram has Rs 369.29 cr dues, Coimbatore Rs 360.16 cr, Madurai Rs 294 cr, Tirunelveli Rs 257.39 cr, Salem Rs 180.69 cr, and the State Express Transport Corporation Rs 122.31 cr.