Tamil Nadu sanctions record payout of Rs 1,137 crore to settle transport staff dues

CHENNAI: In the largest one-time sanction for the transport sector in recent years, the Tamil Nadu govt on Monday released Rs 1,137.97 crore to settle long-pending terminal benefits of retired, voluntarily retired and deceased employees of all State Transport Undertakings (STUs).

According to the order, the sanctioned sum will be distributed across the eight transport corporations including Metropolitan Transport Corporation (Rs 157.81 crore), and State Express Transport Corporation (Rs 54.41 crore).

The sanction covers dues accumulated between July 2023 and April 2024. The transport department had originally sought Rs 2,450.83 crore to clear dues up to Jan 2025, but the govt has now advanced a significant portion to relieve the financial burden on former employees and their families.

Welcoming the move, K Anbazhagan, general secretary of Tamil Nadu Transport Workers’ (Stop-Corruption) Federation, said many retired staff have been waiting for more than two years to get their PF and gratuity. “Since the retirement age was raised to 60, several faced mounting medical bills, and some even passed away before receiving their dues. This sanction will now make a big difference, helping families cover healthcare costs, marriages or loan repayments”.

He pointed out that those with around two decades of service could expect Rs25-Rs30 lakh each through this release. “In the past, such dues were settled in smaller tranches of Rs150-Rs200 crore. This time, the govt has sanctioned the amount in one go, which is a major relief. We hope that pending benefits for serving employees — including nearly 14 months of DA and nine months of arrears from the 2023 pay revision — are cleared soon,” he said.

Transport secretary Shunchonngam Jatak Chiru has directed managing directors of all STUs to disburse the sanctioned sums quickly and submit compliance details in a week, warning that deviations will be viewed seriously. The disbursal, officials noted, comes with strict monitoring provisions under the Tamil Nadu Financial Code and will be overseen by the transport department in coordination with the finance department.

The govt clarified that (Rs1,137.97) funds will be drawn as a ways and means advance and later regularised in the Revised Estimate/Final Modified Appropriation for 2025-26, with the expenditure to be included in the Supplementary Estimates.