Pune: PMPML Deficit Soars to Rs 766.84 Crore, a Sevenfold Increase in a Decade
Pune, 13th February 2025: Pune Mahanagar Parivahan Mahamandal Limited (PMPML) has reported a staggering increase in its operational deficit, which has risen sevenfold over the past decade to reach Rs 766.84 crore. This alarming financial situation was revealed in an audit report submitted to the Standing Committee by Chief Auditor Jitendra Kolambe.
The audit report highlights several factors contributing to the growing deficit, including stagnant fare prices, decreased pass sales, rising employee salary costs, and ineffective inspection teams. While the deficit stood at Rs 99.44 crore in 2014-15, it has skyrocketed to Rs 766.84 crore in the current fiscal year, with the deficit percentage increasing from 34.25% to 59.58%.
PMPML, which provides transportation services to Pune, Pimpri-Chinchwad, and surrounding rural areas, has been relying on financial support from Pune and Pimpri Chinchwad Municipal Corporations to cover its losses. Pune Municipal Corporation (PMC) contributes 60% of the deficit, while Pimpri-Chinchwad Municipal Corporation (PCMC) covers 40%. Recently, the Pune Metropolitan Region Development Authority (PMRDA) has also agreed to share a portion of the deficit.
The audit report points out that PMPML has experienced a significant decrease in revenue from ticket and pass sales. No fare increases have been implemented, and the inspection teams are not functioning effectively. There is a growing disparity between the cost per kilometre of bus operation and the actual revenue generated per kilometre.
To address the mounting deficit, the audit report suggests several measures, including strengthening inspection teams to reduce revenue leakage, conducting a scientific study of the ticket and pass fares, reducing dead kilometre costs, making decisions about non-operational buses, commercial utilization of PMPML assets, route restructuring, and implementing cost-cutting measures for maintenance and other expenses.
