TheKarnatakagovernment is likely to forgo its share of taxes on diesel for all four state-run road transport corporations (RTCs) to bail them out of their financial problems.
At present, the four RTCs together spend a whopping Rs 11.5 crore daily to purchase around 13 lakh litres of diesel. They can save over Rs 1.5 crore a day if the waives its share of taxes.
The daily diesel payout would have been more than Rs 15 crore if RTCs went for bulk purchase, as there is a gap of almost Rs 35 a litre between retail and bulk prices. As a result, RTCs have been buying diesel from retailers recently.
Realising the urgent need for addressing the financial needs of these corporations, whose collective losses are touching Rs 5,000 crore, the government has set up a panel under retired Ias officer MR Srinivas Murthy to suggest reforms to make the RTCs not only self-reliant but also profitable. The committee is expected to submit its report in a few weeks.