The Joint Action Committee (JAC) of the AP State Road Transport Corporation (RTC) employees on Wednesday called off its proposed indefinite strike from Thursday after Chief Minister YS Jagan Mohan Reddy promised to release Rs 3,700 crore with immediate effect to bail out the cash-strapped corporation. The JAC had, on May 9, served a notice on the management to go on strike from June 13 with a charter of 27 demands.
After resolving majority of the demands with the RTC management, the JAC leaders met Jagan at the Interim Government Complex in Velagapudi on Wednesday afternoon.
To the surprise of RTC employees, Jagan called them ‘government employees’, indicating that the YSRC government is in favour of merging the corporation with the government.
Transport Minister Perni Venkataramaiah, APSRTC Vice-Chairman and Managing Director NV Surendra Babu, executive directors A Koteswara Rao, KVRK Prasad and P Rama Rao were also present. 
During the talks, the JAC leaders told Jagan that sharp rise in diesel prices had become a burden on the corporation. They urged the government to bear the burden and provide exemption to the RTC from paying annual Motor Vehicle (MV) Tax. Besides,  the JAC urged the government to allocate funds in the Budget to purchase new buses.