In the decision taken today, the Administration has already invited applications from operators who have a fleet of at least 10 non-AC cars.

It is learnt, non-AC taxis will charge Rs 6 per kilometre while the AC taxis charge Rs 15 flat for every km.

The Administration has recently decided on the flat rate as against the earlier system of charging Rs 12 for every subsequent kilometre for AC taxis.

The non-AC taxis will be low-cost LPG driven. Senior officials said this will keep the rising pollution in city roads under check.

He said the other cheaper means of transport is the autorickshaw, which is also very polluting.

UT Home Secretary Krishna Mohan said all precautions to safeguard the interests of the passengers will be taken.

Non-AC taxis will be fitted with electronic meters, he said.

The vehicles may also be used for ferrying passengers from point to point in local areas.

Mohan said, “Operators who apply should own a minimum of ten non-AC cars. Only new vehicles will be allowed for the service. These will have to be phased out after five years.”

The taxis will be linked through a modern communication system with a control room maintained by the operators.

So far, there four companies running air-conditioned taxis in the tricity. There are 31 taxi stations.