TNSTC too broke to pay salaries

TIRUCHY: The increase in diesel prices has hit the Tamil Nadu State Transport Corporation in Kumbakonam which is  struggling to pay salary and benefits to its workers.As per an approximate estimate, the recent hike in diesel prices would add Rs 10 lakh to the daily expenditure. Meanwhile, gratuity for 9,000 workers is pending and the management will not be able to pay PF for 63 employees retiring this month.The Corporation’s present collection amounts to about Rs 2.37 crore which is just sufficient to pay the employees. But as operational costs are unavoidable, the management is delaying payment of employment benefits and relying on overdraft for payment of salaries, official sources said.N Mani, AITUC State deputy secretary of the transport union, told Express that the situation demanded the State government’s intervention, in reducing or abolishing the VAT collected for the purchase of diesel by the transport corporation.