Retrenchment of employees under Voluntary Retirement Scheme, privatization spell doom for Assam State Transport Corporation

Guwahati: The fate of the Assam State Transport Corporation (ASTC) now hangs in the balance after it emerged that the CNG and electric buses have been handed over to private parties and employees are being given premature retirement under the Voluntary Retirement Scheme (VRS).

Out of concern for the environment, the ASTC started operating buses running on Compressed Natural Gas (CNG) last year and then went for electric buses with much fanfare under a project of Guwahati Smart City Ltd. The 100 green-coloured, chargeable battery-operated buses were flagged off by the CM on January 1, 2024. Charging stations were also set up for better maintenance and smoother operation, it was stated by the CM during the flagging off of the buses. 100 more such buses are to be deployed on the streets of Guwahati and surrounding areas. If reports are to be believed, the buses have been handed over to private parties. This handover of the buses to private entities will spell doom for the ASTC.

Moreover, a large number of ASTC employees were given the golden handshake under the VRS. While 260 employees were bid goodbye in 2023, 83 more were retrenched this year until March 31. With this, the number of permanent ASTC employees has now been reduced to 500. The number of contractual or temporary employees stands at 2300. Also, 771 employees were sacked after it came to light in a probe that they were irregularly appointed.

Sources divulged the information that vital office work has been outsourced and 281 private employees have been employed for the purpose.

It has also emerged that between 2016 and 2024, 1250 employees retired, but they have yet to receive their provident fund or gratuity money, sources said. An amount of Rs 105 crore was earmarked in the state budget for the employees, with Rs 55 crore to provide VRS payments and Rs 50 crore for regular retiring employees. However, only Rs 50 crore has been released by the government till now, the sources added.

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