A special meeting of the Cabinet on Monday decided to grant Rs. 14 crore a month to KSRTC for the next two months to enable it to tide over the financial crisis caused by withdrawal of diesel subsidy.

The Cabinet also asked the Chief Secretary K. Jose Cyriac to examine what could be done thereafter if the Centre does not restore the subsidy. The subsidy was being denied to the KSRTC on the ground that it was a bulk consumer.

Chief Minister Oommen Chandy told the media after the Cabinet meeting that his Cabinet colleagues were unanimous that the withdrawal of the subsidy was not justified. If necessary, he would be going to Delhi to take up the matter with the government and the Congress party.

If the Centre fails to concede the demand of the State to restore the subsidy, the Chief Secretary would work out a solution in consultation with departments concerned.

The Chief Minister said that the grant sanctioned to the KSRTC (Rs. 14 crore a month) was equal to the additional burden on the Corporation on account of the increased diesel bill.

More In: Kerala | National