Undeterred by a state government ban, more than 117,000 employees of the state-owned Andhra Pradesh State Road Transport Corporation (APSRTC) are determined to go on indefinite strike from July 4.

Condemning the government's move of banning strikes in the APSRTC for six months, the employees' unions said Tuesday this would not stop them from going ahead with their protest.

With the latest hike in diesel prices putting an additional burden of Rs.1 billion, the management fears that the strike would add to the financial woes of one of the world's biggest road transport corporations.

Ironically, the employees are going on strike to urge the government to take steps to take the APSRTC out of the red as they fear the financial crisis could lead to its privatization.

APSRTC had entered into Guinness Book of World Records in 1999 for owning the largest fleet of buses at 18,397.

Established in 1932 as a unit of the Nizam State Railways-Road Transport Division with 27 Buses, APSRTC today has 19,720 buses. It transports around 12 million people every day in Andhra Pradesh and to neighbouring states.

However, this distinction has not helped the corporation, which has accumulated losses of Rs.14 billion.

The Joint Action Committee (JAC) of APSRTC Employees Unions has given a call for strike to press for their 18 demands including total reimbursement of concessions, reduction of motor vehicle tax and reduction of sales tax on diesel from 21.33 percent to four percent on par with that paid by Indian Railways. They also want the government to allocate Rs.3 billion a year for five years to bring down accumulated losses.

The JAC called for the strike despite an assurance by Chief Minister Y. Rajasekhara Reddy that APSRTC would not be privatized.

The state government also announced a package of Rs. 6.4 billion.

The government reduced the motor vehicle tax for the corporation to that paid by competing private operators from July 1, 2005 and announced total reimbursement of concessions through the departments concerned and a Rs.1 billion rebate in taxes for 2005-2006.

APSRTC offers concessions of Rs.3.68 billion every year to students, non-gazetted officials, physically handicapped and other sections of society.

"This package is not enough. A lot more needs to be done to save APSRTC," said JAC leader Nageswar Rao.

The employees have also received the backing of Maoists. Accusing the Congress government of continuing the policies of previous Telugu Desam Party government, CPI-Maoist has declared their support to the strike.