Pune: PMPML’s Deficit Surges To ₹766 Crore – Sevenfold Increase In 10 Years
Pune: PMPML Buses To Introduce Automated Stop Announcements For Passenger Convenience
Pune: The operational deficit of Pune Mahanagar Parivahan Mahamandal Limited (PMPML) has surged sevenfold over the past decade, reaching ₹766 crore, according to a recent municipal audit.
PMPML was formed by merging Pune Municipal Transport (PMT) and Pimpri-Chinchwad Municipal Transport (PCMT) to strengthen the public transport system in Pune and Pimpri-Chinchwad. However, instead of decreasing, the company’s losses have consistently increased.
The original plan was to provide affordable public transport while enabling PMPML to become self-sufficient within three years. Pune Municipal Corporation (PMC) agreed to cover 60% of the deficit, while Pimpri-Chinchwad Municipal Corporation (PCMC) would bear 40%. The financial support was initially meant for three years, but as the company failed to become self-reliant, both civic bodies continued to provide financial aid.
In 2013-14, PMPML reported an operational deficit of ₹99.40 crore, which grew to ₹706.35 crore by 2023-24 and further increased by ₹60 crore in 2024-25, reaching ₹766 crore. PMPML has submitted this report to PMC, which will review it in the upcoming standing committee meeting. Since PMC shoulders 60% of the deficit, this will impose an additional financial burden on Pune taxpayers.
Key Reasons for the Deficit:
- Rising salary expenses for staff.
- Increased costs of bus rentals and electricity.
Measures to Reduce the Deficit:
- Boosting ticket and pass sales.
- Minimizing ticket leakage and optimizing concession passes.
- Deploying more buses on high-demand routes.
- Reorganizing routes with expert guidance.
- Streamlining advertising on buses and bus stops.
- Revisiting rental contracts for leased properties.
- Phasing out outdated buses.
- Strengthening ticket inspection teams.
Annual Deficit (₹ Crore):
- 2014-15: 167.68
- 2015-16: 151.80
- 2016-17: 210.44
- 2017-18: 204.62
- 2018-19: 247.04
- 2019-20: 315.10
- 2020-21: 494.16
- 2021-22: 718.97
- 2022-23: 646.53
- 2023-24: 706.80
- 2024-25: 766.86
The rising deficit underscores the urgent need for PMPML to implement effective cost-saving measures while enhancing service efficiency to reduce its financial dependency on the municipal corporations.
