Pune’s public transport provider, PMPML, is facing a massive financial crisis, with its deficit skyrocketing to Rs 766.84 crore this fiscal year. This marks a staggering sevenfold increase from just a decade ago, highlighting the growing challenges the organization is facing.
Several factors have contributed to this financial burden, including stagnant fare prices, decreased pass sales, rising employee salary costs, and revenue leakage due to ineffective inspection teams. The disparity between operational costs and revenue earned per kilometre has further exacerbated the deficit.
To cover these losses, PMPML has been relying on financial support from local authorities, with the PMC covering 60% of the deficit and the PCMC contributing 40%. The recent agreement with PMRDA to share the burden signifies a collective effort to support the struggling transport system.
The audit report suggests various strategies to address the deficit, such as strengthening inspection teams, conducting a scientific study of fares, reducing dead kilometre costs, optimizing non-operational buses, utilizing assets commercially, restructuring bus routes, and implementing cost-cutting measures.
As PMPML works towards improving its financial health, these measures will be crucial in ensuring the sustainability of Pune’s public transport system in the long run.
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