No Diesel Subsidy for KSRTC – Crisis Again

Thiruvantapuram – The apex court ruling against providing subsidized diesel to bulk consumers has pushed the Kerala Road Transport Corporation into deep abyss. Now KSRTC has to pay Rs 17.41 more per litre of diesel to the oil companies. With this the loss would come to around 122.6 Crore rupee every month.

The government will examine all aspects in the light of the order and hold discussions with oil companies to sort out the issue and if necessary, will take it up with the Centre. Said the Chief Minister Oommen Chandy. So far no decision has been taken to cut short the services. The intention of the corporation is to make use of the coming festive season collections Said the managing director KG Mohanlal.

The apex court interim order was given on petitions filed by Indian Oil corporation Challenging the stay orders passed by the High court of Kerala and Madras on the implementation of central government policy not to give subsidized diesel to bulk consumers and this has put the KSRTC to face a new crisis. Presently the corporation is buying 1.3 crore litre for 72 crore rupee. Oil Company has not yet submitted the subsidy deducted bill to the government. In the revised bills the corporation will have to face the over expense of 22.6 crore rupee.