Future of KSRTC in Kerala
by D. Dhanuraj Kerala State Road Transport Corporation (KSRTC) in the news again! This time, many believe that KSRTC will be grounded like Kingfisher airlines. Media reports that it incurs a loss of 8 lakhs rupees every day. The reason they cite is that of the recent hike in the Diesel Price. It was told that KSRTC has to shell out more money compared to the domestic car users as they fall in another category. It looks like the policy of the Government is NOT to promote public transport but the private vehicles. In that case, I do not agree with the Government prescription for more Sales Tax on Diesel for KSRTC as it breaks the rules in the game and having a level playing field with the rest of the competitors in the sector. Rather, Government should have lessened the Sales Tax to facilitate and support the public transport. This incident shows that private transport and private vehicles are encouraged while the public transport is neglected. At the same time, I wonder wheth...