Pune: PMRDA to Prevent PMPML Fare Hike by Transferring Operational Deficit
Pune, 18th March 2023: The Pune Metropolitan Region Development Authority (PMRDA) has announced that it will transfer the operational deficit to the Pune Mahanagar Parivahan Mahamandal Limited (PMPML), similar to what the Pune and Pimpri-Chinchwad Municipal Corporations are doing, to cover the operating deficit of the PMPML. This move is expected to avoid a fare hike for PMPML as the circulation deficit will be reduced.
A meeting was held in Mumbai on Friday, chaired by Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis, to discuss various issues related to PMPML.
PMPML is a major public service in Pune and Pimpri-Chinchwad cities, with at least one million passengers from these two cities travelling by PMPML every day. Both these Municipal Corporations pay a certain amount to PMPML every year towards the operational deficit. However, the current account deficit of PMPML has been steadily increasing for the past few years.
Many lines of PMPML are running at a loss, and the cost of maintenance is also increasing. Therefore, despite receiving funds from both municipalities, PMPML was facing a shortage of funds, and a ticket price hike was under consideration. However, the proposed fare hike has been avoided as the circulation deficit will also be provided by PMRDA.
Since 2004, PMPML had been bearing a huge financial burden due to a non-increase in rent. To reduce this stress, Pune and Pimpri-Chinchwad Municipal Corporations were paying a deficit according to the bus service in their area. However, the stress on PMPML did not ease.
Therefore, it has been decided to reduce the pressure on PMPML by taking its part in PMRDA from now on. The Commissioner of PMRDA will work as the Director of PMPML.
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