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Eknath Shinde Announces 53% Inflation Allowance, Major Reforms for ST Employees

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In a major move aimed at improving the working conditions and morale of Maharashtra State Transport (ST) Corporation employees, Deputy Chief Minister Eknath Shinde on Monday announced a hike in the inflation allowance from 46% to 53% of the base salary. The revised allowance will be applicable starting June 2025 and is expected to benefit thousands of ST staff across the state.

The announcement was made during a high-level meeting held at Sahyadri Guest House, where Shinde addressed several longstanding demands of ST workers. Among the key decisions was the introduction of flexibility in health coverage. Employees will now be able to choose between the Mahatma Phule Public Health Scheme and the Dharmaveer Anand Dighe Medical Reimbursement Scheme, offering them more control over their healthcare needs.

A major highlight of the reform package is the introduction of a ₹1 crore accident insurance policy for all ST employees, significantly enhancing their financial security. Additionally, retired employees will now receive free bus travel passes for a full 12 months, extended from the previous 9-month limit—a long-pending demand from the retiree community.

Shinde, who also holds the transport portfolio, emphasized the importance of the ST Corporation in everyday life, especially for people in rural and semi-urban areas. He called ST buses the “backbone of Maharashtra’s public transport” and said that improving employee welfare is central to better commuter services.

He also directed the department to focus on improving bus and station cleanliness, transforming aging bus depots into modern “bus ports”, and launching cargo services to increase revenue. Shinde stressed the need for a thorough financial audit and targeted reforms to address the persistent deficit in the ST Corporation.

The meeting was attended by several key leaders and officials, including Transport Minister Pratap Sarnaik, MLA Sadabhau Khot, former MP and Shivshahir Workers Sena leader Anandrao Adsul, Captain Abhijeet Adsul, Transport Department Upper Chief Secretary Sanjay Sethi, and ST Corporation Vice President Madhav Kusekar.

This set of decisions is expected to significantly boost the morale of ST employees, while also laying the groundwork for a stronger, more modern, and financially stable State Transport system.