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Diesel subsidy: KSRTC likely to cut services

Diesel subsidy: KSRTC likely to cut services

Thiruvananthapuram: The Kerala State Road Transport Corporation (KSRTC), which is in deep crisis after the apex court set aside the High Court ruling for maintaining diesel subsidy, is likely to cut services to tide over the situation.

According to sources, the KSRTC is planning to cut short services with income less than Rs. 7000 in the first phase.

Transport Minister Aryadan Muhammed on Monday said he would take up this issue with the Cabinet in its next meeting.

“As a result of withdrawing the subsidy, the KSRTC will incur an additional expense of Rs.22.60 crore every month," he had said.

The apex court ruled that no subsidy be provided to the Kerala State Road Transport Corporation (KSRTC) from Monday onwards.

Earlier this year, the government had moved the High Court, seeking a directive to all oil companies in Kerala to supply diesel to KSRTC at subsidised rates, taking into account it is a public utility.

The Court had upheld government's view and asked oil companies to continue to provide KSRTC subsidised diesel.

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