CHENNAI: To appease the growing discontent among the workers over the non-payment of terminal benefits, the state government has sanctioned Rs 1,137.97 crore as Ways and Means Advance to settle pending terminal benefits of retired, voluntarily retired, and deceased employees of all State Transport Undertakings (STUs) for the period from July 2023 to April 2024.

According to a Government Order issued by the Transport Department on Monday, the amount will cover provident fund, gratuity, surrender leave salary, and commutation payments.

The financial assistance will be allocated to eight transport corporations, including the Metropolitan Transport Corporation (Chennai), State Express Transport Corporation, and the Tamil Nadu State Transport Corporations at Villupuram, Salem, Coimbatore, Kumbakonam, Madurai, and Tirunelveli.

The largest share of Rs 235.63 crore has been allocated to the TNSTC Kumbakonam, followed by Rs 157.81 crore to the Metropolitan Transport Corporation.

The order directed that the sanctioned amount be credited to the Tamil Nadu Transport Development Finance Corporation for onward disbursement. The loan carries 12.8 per cent annual interest and must be repaid within 2025-26. Managing Directors of the transport corporations have been asked to submit disbursement details within a week.