The government is yet to find a solution to the financial crisis faced by the Kerala State Road Transport Corporation (KSRTC) which is forced to pay Rs.60.25 for a litre of diesel.

The government, which is delaying its decision on a request by the KSRTC to concentrate on profitable bus routes and rationalise operations, on Friday held discussions with trade union leaders of the KSRTC.

The meeting with Chief Minister Oommen Chandy was aimed at eliciting their opinion as the undertaking was finding it difficult to keep itself afloat.

The government is awaiting the outcome of the decision of the Union Petroleum Ministry and is hopeful that State transport undertakings will get some exemption from the tag of ‘bulk consumers’ of diesel.

Transport Minister Aryadan Mohammed held discussions over the phone with Union Petroleum Minister Veerappa Moily on the issue and the crisis faced by the KSRTC.

Later, the Minister said a decision to solve the crisis would be taken by the government at the next Cabinet meeting. The Minister had already ruled out increasing the fares and the Cabinet had asked the KSRTC not to curtail schedules to avoid hardships to commuters.

The management had sought the nod of the government to avoid loss-making schedules and prioritise services as 1,650 schedules had been identified as unviable. The other requests included assistance of Rs.200 crore and waiver of the 19.8 per cent sales tax paid to the State.