Diesel price hike: TN allocates Rs 200 crore to meet expenses

With state transport undertakings reeling under the impact of increase in diesel price, Tamil Nadu government today said it had allocated Rs 200 crore this year to meet the expenses while avoiding revising ticket rates.

Transport undertakings were incurring an additional expenditure of Rs 31.82 crore per month after diesel price was raised by Rs 6.07 in September by the Centre and their monthly diesel expenditure stood at Rs 261.90 crore, Chief Minister J Jayalalithaa said in a statement.

The price revision has resulted in an annual loss of Rs 381.81 crore. The undertakings' fuel consumption stood at almost 5.24 crore litres per month.

Transport undertakings will incur an additional Rs 206 crore towards diesel expenditure during the current financial year between September 14, 2012 and March 31, 2013, she said, adding, to compensate this, they have to "increase ticket rates."

"However, considering people's welfare and at the same time the need to compensate the losses, the government has decided to bear the additional expenses. Rs 200 crore had been allocated for this purpose in the first Supplementary Estimates passed in the state Assembly on Friday," she said.