Thiruvananthapuram: The State government has decided to bear for two months the financial burden of KSRTC followed by the Centre’s decision to allow oil companies to deregulate diesel prices for bulk purchasers.
The decision to bear the additional burden of the loss-making public utility was taken at a special Cabinet meeting held here Monday.
The Cabinet also decided to ask the Central government to reconsider the decision to deregulate diesel prices for bulk users. A special team led by Power minister Aryadan Muhammed will meet the concerned in Delhi to pressurize the Centre on this regard.
Followed by the decision to deregulate diesel prices, reports say that KSTRC has been hit with a monthly loss of Rs 15 crore forcing it to drastically cut its services across the state.
Finding it difficult to operate the entire existing schedules, the KSRTC management had decided to seek the government’s nod for stopping many more services in the “unviable routes.”
The government decision to back the State bus corporation comes in a point of view that cutting such a large number of services is a “sensitive issue” in view of the hardship it would cause to the common people.
Though chief minister Oommen Chandy had already written to Prime Minister Manmohan Singh about the need to reconsider the decision, the Centre is yet to respond to the state’s plea.
In his letter to the Prime Minister, Chandy had sought that public utility services like Railways and State Road Transport Corporations be exempted from the purview of the pricing policy if it was difficult to totally withdraw the decision to deregulate the diesel price.