State government can liquidate its road transport corporation, though only after the Centre gives its approval.
Nitin Gadkari
Hyderabad: Union transport minister Nitin Gadkari told the Rajya Sabha on Tuesday that a state government can liquidate its road transport corporation, though only after the Centre gives its approval.
Mr Gadkari was responding to a query from Congress MP K.V.P. Ramachandra Rao, who asked whether a state can independently decide to wind up its RTC or merge it (with a state government) without consent from the Central government.
He said under Section 39 of the Road Transport Corporations Act, 1950, an RTC can be liquidated by the state government concerned with prior approval of the Centre.
He, however, made it clear that the central government does not bear any losses incurred by state RTCs.
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