The state government would hand over diesel dispensing pumps of the Kerala State Road Transport Corporation (KSRTC) to the State Civil Supplies Corporation (Supplyco) on a lease basis, said transport minister Aryadan Muhamed.
KSRTC will now buy diesel through Supplyco outlets and private diesel pumps. The state cabinet will take a formal decision in this regard on Friday.
The decision was taken at a joint meeting of chief minister Oommen Chandy, Muhamed and representatives of public sector oil companies in Thiruvananthapuram in the wake of the recent Supreme Court order scrapping the sale of subsidised diesel.
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The diesel pumps - numbering 67 - were the exclusive dispensing centres for RTC buses. These would be open to the public once they are handed over to Supplyco.
The government would formally approach the Centre to give licences to Supplyco to operate the pumps. Currently, Supplyco operates 11 pumps.
Muhamed said there would not be any hike in bus fares, retrenchment of KSRTC employees or withdrawal of concessions to students and free passes.
He denied reports that the corporation had cancelled around 2,200 services, and assured maximum number of services would be operated.
KSRTC now gets diesel at a rate of Rs 73.26 per litre, which is Rs 19.36 higher than the subsidised rate prior to the apex court verdict.
It is projected that the annual loss of the transport corporation would cross Rs 1,000 crore by the end of this fiscal.

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