The West Bengal government announced on Monday a Re 1 per litre subsidy on diesel utilised for public transport in the state, which will cost it Rs 110 crore (Rs 1.1 billion) annually.
The state government decided to provide the subsidy to bus, minibus and taxi operators in the state effective from August 1, Finance Minister Asim Dasgupta told the Assembly while speaking on the West Bengal Appropriation (No 2) Bill, 2010.
He said that it was calculated that buses and minibuses each consumed 50 litres of diesel and taxis 20 litres daily.
The government, he said, will deposit the subsidy in the bank accounts of the bus, minibus and taxi operators each month.
There will be no reduction in the retail price of diesel, which stands at Rs 39.94 per litre in the state.
Besides this, the state government will provide a subsidy of Rs 50 crore (Rs 500 million) on kerosene.
However, there will be some reduction in the price of kerosene, he said, though the exact amount will be announced later.
Claiming that the state government was giving a total subsidy of Rs 160 crore (Rs 1.6 billion) on diesel and kerosene, Dasgupta claimed that such steps have not been taken anywhere else in the country.
