According to Shivaji Chavan, leader of state transport employees, Chief Minister Narayan Rane seemed to understand the gravity of the problem that maxicabs would give rise to. ``We will lose nearly 35 per cent of our income if they start plying,'' he said. The matter is likely to be thrashed out within two weeks.

The bone of contention has been the government's offer to grant licences to maxicabs to ply on loss-making routes of the state and city transport corporations. This has not found favour with theunions.

The maxicab issue has continued to vex the state government ever since its notification in May this year which called for public opinion over the model of the proposed vehicle. The unions had alleged that the government was being partial to the automobile manufacturers lobby, while the government claimed that the move to introduce maxi-cabs was, in fact, intended to wipe out illegal transporters from the roads.

The maxicab is designed to accommodate 10-12 passengers and is expected to offer an alternative to those who use state transport buses.