This Government have given travel concessions for travel in State Transport Corporation buses to the following categories of persons:

1. Members of Parliament, Members of Legislature, Ex-Members of Parliament, Legislative Assembly and Council.

2. Students

3. Accredited Journalists

4. Freedom Fighters drawing Central/State Pension and those who participated in Border/Language stir, Widows and Legal-heirs of Freedom Fighters drawing Central Pension/State Pension or Wife/Husband and minor legal-heirs of those who participated in Language stir to protect Tamil Language and those who are recipients of financial assistance from Government.

5. Cancer Patients, Physically handicapped, Deaf, Blind, Mentally Retarded and epileptic patients.

6. Drama Artists

With a view to benefitting all students and to give a real meaning to the concept of Education for all, all students studying from Standard I to Standard XII in all schools including private schools and Students studying in Government Polytechnic and Government Arts & Science Colleges are provided with Free Travel Bus Passes to travel from residence to school / Polytechnic / Colleges and back. The free bus passes will be valid on all days including holidays. Similarly, the students studying in all other colleges including private colleges will be given 50% concessional travel bus passes to travel from residence to Colleges, Private Polytechnics, ITIs and Arts and Science Colleges and back. These passes will be valid on all days including holidays. Exchange tokens upto 60 in number are issued to the College students travelling in Metropolitan Transport Corporation buses to travel to the Library and back to their residence.

During the year 2007-2008, 26.56 lakhs students were benefited. The subsidy paid by the Government to the Transport Corporations comes to Rs.300 crores during the year 2007-08 out of the expected claim of Rs.321 crores. The entire face value of the ticket is reimbursed by the Government in respect of passes issued by the Metropolitan Transport Corporation (Chennai) Limited, in Chennai city, and in respect of Mofussil Transport Corporations the ticket cost is shared between the Government and the Corporation in the ratio of 56:44.

For the benefit of general passengers, Monthly Season Tickets are issued collecting the Limited Stop Service (LSS) fare equivalent to 40 trips from the origin to destination for travel up and down on all days in a month in the Metro and Town services.

Passengers can travel anywhere in Chennai, Madurai, Coimbatore, Salem, Trichy and Tirunelveli Municipal / Corporation areas by purchasing tickets at the following rates subject to the conditions printed in the ticket. Recently Metropolitan Transport Corporation (Chennai) Limited has introduced sale of "Travel As You Please" Daily tickets valued at Rs.30/- in the buses itself through conductors.

1) One day ticket : Rs. 30/-

2) Weekly ticket : Rs.160/-

3) Monthly ticket : Rs.600/-

10% discount on fare is given in the buses of State Express Transport Corporation when reservation is done for 8 or more members as a group.

10% discount on fare is given in the buses of State Express Transport Corporation when reservation is done by Senior Citizen who has completed 60 years of age.

The State Transport Undertakings are implementing the following welfare measures for the welfare of the workers and their families.

1. Service weightage

2. Free Travel passes to the children of the employee

3. Subsidised canteen facilities

4. Education allowances

5. Allowances with wages

6. Reimbursement of legal fees

7. Uniform

8. Family Benefit Fund

9. Marriage Loan

10. Steering Allowance

11. Voluntary Retirement Scheme

12. Leave benefits

13. Holiday Home

14. Special Health Fund Scheme

15. Preferential Admission to Medical College, Engineering College and Polytechnics run by the Institute of Road Transport for the children of employees

16. The Pension Scheme for Transport employees

17. Employees' Post-Retirement Benefit Fund Scheme

18. Funeral expenses.

In order to reduce the expenditure on account of accident claim compensation and to settle the claim early, the State Transport Undertakings have been instructed to settle the claims through Lok Adalat and reach mutual settlement of accident claims and thus save huge amount to the State Transport Undertakings. During the year 2007-2008 the Corporations have settled 517 cases through Lok Adalat and saved a sum of Rs.353.92 lakhs from April 2007 to February 2008.

Tamil Nadu Transport Development Finance Corporation Limited commenced its business in March 1975 to cater to the long term financial requirements of State Transport Undertakings towards the purchase of chassis, body building, setting up of workshops and also to meet the working capital requirements by mobilizing adequate funds from general public through public deposits. Tamil Nadu Transport Development Finance Corporation Limited has been registered as a Non-banking Finance Company with the Reserve Bank of India and classified as a Hire Purchase Finance Company.

Tamil Nadu Transport Development Finance Corporation Limited has a track record of earning profit every year since its inception from1975. The profit earned for the last 3 years is given below.

(Rs. in lakhs)

As per the revised estimate for 2007-2008 the estimated profit is Rs.6.20 crores after providing interest waiver of Rs.20.00 crores to loss making STUs. The deposits with Tamil Nadu Transport Development Finance Corporation Limited as on 29-02-2008 is Rs.783.65 crores. Financial assistance to State Transport Undertakings extended by Transport Development Finance Corporation since its inception upto February 2008 is Rs.7158.10 Crores. In order to encourage prompt repayment of loans by the State Transport Undertakings, Tamil Nadu Transport Development Finance Corporation Limited has instituted "Best Customer" Award, which is given away every year. For 2006-07, Tamil Nadu State Transport Corporation (Salem) Limited, Tamil Nadu State Transport Corporation (Kumbakonam) Limited, and Tamil Nadu State Transport Corporation (Villupuram) Limited, have been adjudged as 1^st , 2^nd and 3^rd respectively.

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Pallavan Transport Consultancy Services Limited was incorporated in April 1984 as a wholly owned company of Government of Tamil Nadu with an Authorized Capital of Rs.5.00 lakhs and Paid-up Capital of Rs.2.00 lakhs. Subsequently in May 2000 the Paid-up Share Capital was increased to Rs.10.00 lakhs with the Authorized Share Capital of Rs.50.00 lakhs. The activities of the company are supervised by seven Board Directors appointed by the Government of Tamil Nadu. The day-to-day affairs of the company are looked after by a full time professional Managing Director. The total Staff Strength of the Organization is eleven (11) only.

Pallavan Transport Consultancy Services Limited offers Consultancy services in the areas of Software Development, Management, Information Technology and Traffic and Transportation by a core team of qualified and experienced consultants in the respective fields. The core team is supported by the experts. Further it engages personnel from Institute of Road Transport, Highways and retired Government executives with experience and utilizes the services of the Professor / Faculty of Anna University in the relevant areas on job to job basis as and when required. Pallavan Transport Consultancy Services Limited is participating in tenders as consortium by associating with reputed Consultancy organization with rich experience in the relevant fields. At the moment, the Pallavan Transport Consultancy Services Limited is engaged in implementing On Line Ticket Reservation System (OTRS) in collaboration with Electronic Corporation of Tamilnadu Limited (ELCOT) for all State Transport Undertakings and Global Positioning System (GPS) application in Metropolitan Transport Corporation and State Express Transport Corporation. It has also developed Common Software Applications for all the State Transport Undertakings for day-to-day operations.

Pallavan Transport Consultancy Services Limited has grown since its inception in 1984 despite the competitive nature of Consultancy business. Good potential exists in the fields of Information Technology, Infrastructural Development in Road Transport Sector and Management Services. Efforts are being taken to expand business in these areas despite resource constraints.

There is an imperative need to expand the capital base of the company for augmenting the capital resources to enable participation in tenders for securing high value projects.

The Institute of Road Transport is a society registered under the Societies Registration Act, 1860. This Institute has entered its Thirty Third year and continues to expand its services. The Institute undertakes applied research on issues pertaining to Road Transport, performs quality monitoring by conducting tests on random sample of spare parts procured by the State Transport Undertakings in Tamil Nadu, besides imparting training activities on a large scale to the employees of State Transport Undertakings besides general public. It also undertakes as a nodal agency procurement of bus Chassis, printing of Tickets, Tyres, R.T materials, lubricants and Outsourcing of bus body building on behalf of State Transport Undertakings by following open tender policy.

The Automobile Research Oriented Engineering College known as Institute of Road and Transport Technology was started in 1984 at Erode under the aegis of Institute of Road Transport. So far 4880 B.E. Graduates, 41 M.E. (Structural), 18 M.E. (Thermal) and 380 M.C.A. Post Graduates have completed the course from this Engineering College. The College has been accredited by A.I.C.T.E for the Bachelor’s degree courses in Civil, Mechanical and Automobile Engineering. The Perundurai Medical College and Hospital were started in the year 1986 under Institute of Road Transport as per the scheme formulated by the Government. This College has produced 879 Doctors from inception. Further, the Institute of Road Transport also started three Polytechnics one each at Chrompet (Chennai), Bargur and Tirunelveli in 1992-93.

Both in Engineering and Medical Colleges, 65% of the seats are being filled up by the Government and the balance 35% seats are being allotted to the wards of employees of State Transport Undertakings on merit and communal rotation basis from the academic year 2006-2007. In Polytechnic Colleges, 50% of seats are being filled up by Government and the balance 50% is being allotted to the wards of the employees of State Transport Undertakings on merit basis. The total number of seats, seats filled under Government quota and under Management quota in the Colleges run by the Institute are as detailed below: -

The recurring expenditure of above educational institutions is being met out of the interest earned on interest free loan contributed by the employees of the State Transport Undertakings and the capital expenditure of these Educational Institutions is met out of special contributions received from the State Transport Undertakings.

The Institute of Road Transport is at present running Heavy Vehicle Driver Training Schools at 17 centres such as I.R.T - Gummidipoondi, I.R.T.- Trichy and Madurai (Two Centres) and Tamil Nadu State Transport Corporation Limited Nagercoil, Dindigul, Tirunelveli, Pudukottai, Virudhunagar, Salem, Dharmapuri, Erode, Pollachi, Villupuram, Vellore, Karaikkudi and Kumbakonam in association with the State Transport Undertakings. Totally 41,319 candidates have undergone Heavy Vehicle Driver Training Course up to 2006-2007. During the current year 1583 persons have undergone Heavy Vehicle Driver Training Course. The Institute of Road Transport is also running Light Vehicle Driver Training Centres at Taramani, Chennai and Trichy for giving driver training in light motor vehicle and in two-wheeler.

Tamil Nadu Motor Vehicles Maintenance Department, comprising 20 Government Automobile Workshops situated in various District Headquarters all over the State and 3 Regional Deputy Directorate is functioning for the past 56 years as a Service Department with the Director as the Head of Department. This Department is looking after the maintenance needs of nearly 13,650 Government Vehicles. A Secretariat Service Station is functioning to carry out minor and petty repairs of V.I.P Vehicles and Vehicles of Secretaries to Governments. There are 10 fuel Dispensing Bunks functioning under the control of this Department.

The main objective of this Department is to provide quality service to the Government Vehicles in an economical and efficient manner so that the down time is minimum. With the above view, a scheme for Research was sanctioned in 2006-2007 to this Department for developing prototypes of Automatic Engine Stopper, Tyre Inflation Indicators, Engine Oil Monitoring Device, Alternate Fuel etc. The Research & Development Cell in the Directorate is taking shape. It is expected that this Cell will provide important research inputs for proper maintenance of Government Vehicles in future.

As per the announcement made by the Hon’ble Minister for Transport in the Assembly during the 2006-07 Budget Demands, the work of connecting 20 Government Automobile Workshops with the Directorate through Broad Band has been completed. The software for this purpose has been developed by M/s. Pallavan Transport Consultancy Services Limited.

In the recent past Chennai has grown as a Hub for foreign direct investment in sectors like Manufacturing, Automobiles, Electronic Hardware, Information Technology, Services, etc. Such investment is still growing. Apart from this a large number of foreign investors like Ford, Hyundai, Nissan – Renault, BMW, Saint Gobain, Motorola, Nokia and Foxconn etc., have made Chennai their production base. Tamil Nadu is also an important destination for foreign tourists. In recent years, the Chennai Airport has recorded significant growth in both passenger traffic and cargo movement. Keeping all these in mind the Government has decided to go for Modernisation and Expansion of Chennai Airport in co-ordination with the Government of India. Land acquisition work to acquire 1069.99 acres for land is being undertaken by the Government of this purpose. The Airports Authority of India, which is undertaking the modernisation programme has proposed to spend about Rs.1800 crores on this. The modernisation of Chennai Airport will be completed by 2010. The State Government is also examining the option of establishing a Greenfield Airport at Sriperumpudur. As regards the non-metro airports like Coimbatore, Madurai, Trichy and Thoothukudi airports, the State Government is taking action to acquire lands for their expansion and modernisation as per the Master Plan submitted by Airports Authority of India in order to meet the growing needs of the passengers and the cargo.

Indian Aviation Sector is at present facing a severe shortage of trained Pilots to fly commercial Aircrafts. There are very few Pilot Training Institutes in the country to cater to the training needs of Pilots. At the same time, because of the Open Sky Policy of the Government of India, quite a number of Private Airlines have started operations in the country in order to meet the growing demands of flying passengers. This has in turn led to an increasing demand for employment of skilled Pilots. The skill level of Pilots can be enhanced significantly by providing training in courses based on Aeronautical Science. Keeping this in mind this Government has decided to set up an Institute in honour of the Late Prime Minister Thiru Rajiv Gandhi in the name and style of Rajiv Gandhi Institute of Aeronautical Science and Training of Pilots Academy at Sriperumpudur near Chennai. In this connection the Executive Director (ATM). Airports Authority of India, New Delhi was requested to undertake a Techno Feasibility Study of the proposed project. Accordingly a Team of Officials headed by him made a preliminary inspection at Sriperumpudur on 21-2-2007 along with the Airports, Meteorological and Revenue Department officials and as per the guidelines given by the inspecting officials, necessary action to identify suitable site is being taken.

The Madras Flying Club was started in the year 1930 and over the years the Club has become a Centre of education for training boys and girls in flying and Aircraft Maintenance Engineering and a large number of Pilots and Engineers trained by this Club has been employed in Aviation Industry.

The Tamil Nadu Government is sanctioning Rs.3.80 lakhs per year for the Madras Flying Club as Fixed Subsidy and a sum of Rs.3.72 lakhs as Fuel Subsidy to meet the Establishment charges and other running expenditure of the Club.

(Rupees in thousands)

(Rupees in thousands)