Bengaluru: Close on the heels of massive pay hike to central government employees by the Modi government, the state government too has agreed to increase the salaries of entire staff working in the KSRTC and the BMTC by 8 per cent, keeping in view their long pending demand and inflation.

Briefing newspersons, state Law minister TB Jayachandra said that the government decision would benefit around 1.15 lakh officers and employees working in state transport department including BMTC. The burden on the state exchequer would be to the tune of Rs 1131.11 crores and the increase will be effective from Jan 1, 2016. The arrears amounting to Rs 143 crore rupees will be released shortly, he clarified.

The demand for salary increase was pending over the last four years. The state transport department incurred losses during the last three year but have shown marginal profit this year, he confirmed.

He also said that the government has given a go ahead to buy 1000 new buses for BMTC at a cost of Rs 388 crore rupees by raising loan from Banks and other financial institutions and confirmed that the state government will only bear the interest component of Rs 152 crore rupees for this purpose.

He also said, the government had recruited 2257 drivers in the NWKRTC (North-west Karnataka road Transport Corporation) which was more than the actual number given in the advertisement for recruitment. Even those who were in merit and roster register were inducted thereby increasing the workforce to bring in efficiency in the department.