RTC chief justifies decision on hire buses

Hyderabad, Dec 25 (UNI) Andhra Pradesh State Road Transport Corporation(APSRTC) Vice-Chairman and Managing Director V Dinesh Reddy today justified the deployment of hire buses saying they were according to the guidelines given by the Indian Institute of Management(IIM).

Addressing the press here, Mr Reddy said in 2005, the state government had asked the IIM to study the corporation's performance and give recommendations to improve its working.

After a throrough study, the IIM gave its suggestions, including deploying hire buses. This was approved by the Ministerial group, he said adding the move would not pose any danger to the corporation's existence or the job security of its employees.

The RTC was in sound position earning a profit of Rs 120 crore till November this year. It also planned to purchase 3,000 more vehicles and add another 1,500 vehicles on hire basis.

The corporation required more buses to meet the increasing demand. Since it was difficult to invest huge capital in making purchases, the corporation had decided to hire vehicles.

On the strike notice served by the National Mazdoor Union of the Corporation protesting against the decision to hire buses, Mr Reddy said he would hold talks with the union leaders and explain the position to them.

UNI