Kolkata, Sep 23 (IANS): A day after taxi unions decided to put their strike on hold in view of the forthcoming festive season, the West Bengal government Tuesday dismissed a hike in fares following a meeting with the disgruntled cabbies.

Called by Centre of Indian Trade Unions (CITU), and All India Trade Union Congress (AITUC), the strike that began last week resulted in hundreds of cabbies pulling their vehicles off the roads to voice their demands for a fare hike and to protest "police excesses". It was the eighth strike since August.

The striking cabbies met the State Transport Minister Madan Mitra Tuesday.

"We are not raising the fares. We will not be pressurised by the striking taxi unions," Mitra said after the meeting, adding there will be another round of talks after Kali puja.

On Monday, CITU leader and former minister Anadi Sahu said: "The agitation is on and we will resume the strike soon unless our demands are met. The problems of the drivers still remain unresolved."

He said a delegation had visited West Bengal Governor K.N. Tripathi Monday with the list of demands. At the centre of the dispute is the government decision to increase the fine for passenger refusal from Rs.100 to Rs.3,000 to combat repeated complaints of refusals.

Mitra has ruled out any alteration in the passenger refusal fine.

However, he said the state government will consider compensating the cabbies whose vehicles were damaged during the strike.

The government in August arrested 22 drivers for vandalism as they damaged taxis which did not heed their call and continued plying. They were released on bail after spending four days in jail.

Around 37,000 taxis ply in the city daily.