Nation Current Affairs 09 Jan 2019 KSRTC seeks fuel dis ...

KSRTC seeks fuel discount

DECCAN CHRONICLE. | KRISHNA KUMAR K E
Published Jan 9, 2019, 5:53 am IST
Updated Jan 9, 2019, 5:53 am IST
Currently, Kerala SRTC is purchasing 13500 KL of diesel every month, costing it Rs 95 crore.
The annual purchase cost comes to Rs 1,140 crore which amounts to one-third of the corporation's total expenditure.
 The annual purchase cost comes to Rs 1,140 crore which amounts to one-third of the corporation's total expenditure.

Kochi: The Kerala State Road Transport Corporation has asked fuel supplier Indian Oil Corporation (IOC) to allot it a discount for bulk purchase of diesel at par with that provided to Karnataka State Road Transport Corporation by oil companies.

Currently, Kerala SRTC is purchasing 13500 KL of diesel every month, costing it Rs 95 crore. The annual purchase cost comes to Rs 1,140 crore which amounts to one-third of the corporation's total expenditure.

 

"The Karnataka SRTC and the BMTC (Bangalore Metropolitan Transport Corporation) are procuring HSD (High Speed Diesel) from BPCL (Bharat Petroleum Corporation Ltd) and getting Rs 1,950 per KL as discount for both the STUs, with similar credit limit. Meanwhile, IOC is giving a nominal discount, Rs 300 per KL to the Kerala RTC," Managing Director Tomin J Thachankary said in his letter to the IOC Chief Commercial Manager.

He further observed the Kerala RTC is striving to effect a turn around and that a discount at par with that provided to the neighbouring transport corporations will help it save Rs 28 crore a year.

 

The development comes at a time when another oil major offered more than Rs 2,000 per KL to the Kerala RTC upon bulk purchase.

"You're requested to give similar or better discount at par with the discount and credit issued by BPCL to BMTC and Karnataka RTC. Otherwise we'll be forced for alternate solutions for getting better offers, including open tender, as KSRTC is in a financial crisis and is in the urge of restructuring," the letter read

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