Kerala urged Central Govt to retain Diesel Subsidy

23 Jan 2013

The Kerala Cabinet on Wednesday urged the Central government to rescind the decision to withdraw diesel subsidy for public sector utility services. Chief Minister Oommen Chandy, who briefed the media, said he had already written to Prime Minister Manmohan Singh and Union Minister for Petroleum Veerappa Moily objecting to the withdrawal of subsidy. The State’s Council of Ministers fully agreed with him.

The Cabinet, which discussed the difficulties caused to the Kerala State Road Transport Corporation by the decision, felt that it could not agree with the withdrawal of the subsidy. State transport services and Railways should be exempted.

The Chief Minister said the curtailing of the Kerala State Road Transport Corporation’s services was only a temporary measure to reduce expenditure. Reduction of fleet and hike in fares were no solution to the KSRTC’s financial strain.


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