Hyderabad: Andhra Pradesh State Road Transport Corporation (APSRTC) will be bifurcated on May 28 and a new road transport corporation will be formed for Telangana state.

"The division of APSRTC would begin on May 28 and the corporation shall function as two separate entities (for Andhra Pradesh and Telangana)," Telangana Transport Minister P Mahender Reddy told reporters here on Thursday after launching the TSRTC logo.

Telangana Chief Minister K Chandrasekhar Rao had earlier given the nod for a new logo.

Asked on hike in passenger fares, the minister said, "We are still in the process of deciding on how much percentage of fare hike should be done. Diesel prices have also gone up and that should also be considered for taking a decision to increase the fares."

A committee was formed to look into various aspects to make the corporation overcome current losses and make it profitable, he said.

On bifurcation of assets and properties, Reddy said the properties which are in Telangana shall remain there (Telangana) only, and similarly the properties in Andhra Pradesh shall belong to that state only.

A sum of Rs 150 crore has been allocated to purchase 500 new buses for Telangana, he said, adding that 93 lakh passengers were travelling by the corporation buses daily in Telangana.