Jamshedpur, June 4: The fate of Bihar State Road Transport Corporation (BSRTC) which was hanging in the balance since the bifurcation of undivided Bihar is set for a change.

A five-member arbitration committee comprising transport secretary and commissioner of both the states met at New Delhi today and put a final seal on the distribution of assets and liabilities of the defunct corporation.

The assets and liabilities of the 11 divisions of BSRTC would be distributed between the two states in the ratio of 65:35. In the absence of a final decision on the assets and liabilities distribution, the corporation was unable to provide new buses to its divisions based in Jharkhand.

Of the 11 divisions of BSRTC, four are based in Ranchi, Jamshedpur, Dhanbad and Dumka.

“The divisions of assets and liabilities involving Rs 1,147 crore in all likelihood would work as a turnaround for the defunct corporation. The expansion plan for the Jamshedpur division would be initiated soon,” said Bhartendu Prasad, divisional manager of BSRTC’s Jamshedpur division.

According to Prasad, retired employees would also be benefited, as they would get their outstanding dues.

Existing employees of the corporation were getting 50 per cent of their salary as per the directive of the Supreme Court, which was monitoring the affairs of the corporation since 1998.