Chennai govt clears transport staff dues in relief
In a major financial intervention, the Tamil Nadu government has sanctioned ₹1,137.97 crore to settle long-pending terminal benefits for retired, voluntarily retired and deceased employees of State Transport Undertakings (STUs). The release, regarded as the largest one-time sanction for the sector in recent years, offers long-awaited relief to thousands of families who had been waiting for their dues for more than two years.
The sanctioned funds will be allocated across eight transport corporations, including the Metropolitan Transport Corporation and the State Express Transport Corporation. The amount covers arrears accumulated between July 2023 and April 2024, providing retirees and their families a much-needed financial breather. According to officials, the transport department had initially sought over ₹2,450 crore to clear dues until January 2025, but the current sanction addresses nearly half of that burden.
For many households, the release of funds marks more than just an administrative decision. Retired staff and their dependents had been grappling with mounting medical bills, education costs, and loan repayments, with several unable to access their provident fund and gratuity on time. Worker representatives noted that the one-time release is a significant departure from past practices where smaller tranches of ₹150–200 crore were disbursed periodically, often prolonging the wait for beneficiaries.
Transport officials have directed all corporations to ensure immediate disbursement, with compliance reports expected within a week. The sanction will be closely monitored under the Tamil Nadu Financial Code, with oversight by both the transport and finance departments. The funds, drawn as a ways and means advance, will later be regularised in the state’s supplementary estimates for 2025–26. Experts say the decision demonstrates a balancing act between fiscal prudence and social responsibility. On one hand, it relieves long-standing obligations that had eroded trust between workers and the state. On the other, it sets a precedent for governments to recognise the human cost of administrative delays, especially in essential services like public transport.
Sustainability advocates point out that financial health of transport corporations is critical not only for employee welfare but also for ensuring equitable, affordable, and environmentally responsible urban mobility. With Chennai’s transport sector forming the backbone of daily commuting, timely settlements such as these help restore workforce morale and reinforce the credibility of public systems that citizens rely on. While retirees now have hope of meeting pressing family and healthcare needs, serving employees are still awaiting resolution of pending allowances and pay arrears. Officials have indicated that future releases may address these gaps. For now, however, the disbursal represents a rare moment of relief in a sector often beset by financial strain and urban pressures, underscoring the government’s effort to combine welfare commitments with sustainable urban governance.
