The state government on Friday rejected bus operators’ demand for a fare hike saying it was too soon after the diesel price increase and proposed a package for the phase-out of old vehicles.

Representatives of private bus operators’ unions met transport minister Subhas Chakraborty and officials of his department at Writers’ Buildings to seek a fare hike.

A government official who attended the meeting quoted Chakraborty as responding: “It’s too early to raise this issue for negotiation. The diesel price was increased only two days ago. The Centre may even roll back the hike.”

Bus operators saw the rejection coming. “Even we felt it was too early to ask for a hike,” said the spokesperson for a union.

To implement the high court ban on over 15-year-old buses, the state government proposed to replace them with 50+1-seater vehicles manufactured by Tata Motors and Ashok Leyland.

They will cost about Rs 20 lakh each. The Centre will provide Rs 6 lakh as a grant under the Jawaharlal Nehru National Urban Renewal Mission and the state government Rs 3 lakh.

“The remaining Rs 11 lakh will have to be borne by the operators. Nationalised banks would provide them loans on easy terms,” said a transport official.

Bus operators expressed “overall satisfaction” with the package to Metro though they told transport officials that they would respond after “careful consideration”.

The bus operators want more choice of models. They also want the ownership of the buses to be handed to them. The government wants the West Bengal Transport Infrastructure Development Corporation to retain the ownership till the operators repay the loan.

Over 2,500 out of the 9,000-odd private buses plying in the city and its outskirts have to be replaced.