With state transport undertakingsreeling under the impact of increase in diesel price, TamilNadu government today said it had allocated Rs 200 crore thisyear to meet the expenses while avoiding revising ticketrates.
Transport undertakings were incurring an additionalexpenditure of Rs 31.82 crore per month after diesel price wasraised by Rs 6.07 in September by the Centre and their monthlydiesel expenditure stood at Rs 261.90 crore, Chief Minister JJayalalithaa said in a statement.
The price revision has resulted in an annual loss of Rs381.81 crore. The undertakings' fuel consumption stood atalmost 5.24 crore litres per month.
Transport undertakings will incur an additional Rs 206 croretowards diesel expenditure during the current financial yearbetween September 14, 2012 and March 31, 2013, she said,adding, to compensate this, they have to "increase ticketrates."
"However, considering people's welfare and at the same timethe need to compensate the losses, the government has decidedto bear the additional expenses. Rs 200 crore had beenallocated for this purpose in the first SupplementaryEstimates passed in the state Assembly on Friday," she said.