Transport utility struggles to keep going as losses mount
Pune Mahanagar Parivahan Mahamandal Ltd (PMPML),facing a cash crunch,is staring at an increase in losses as the recent fuel price hike has pushed cost of running its buses higher.
3 min read
Pune Mahanagar Parivahan Mahamandal Ltd (PMPML),facing a cash crunch,is staring at an increase in losses as the recent fuel price hike has pushed cost of running its buses higher. It is already making a loss of around Rs 44 lakh a month. The figure is set to mount three-fold that too,when around 250 of the cash-strapped transport utilitys buses are off the roads every day.
The Pune and Pimpri-Chinchwad civic bodies halting financial assistance has made the problem severe for PMPML.
PMPML officials said the recent hike in diesel meant the monthly fuel (diesel and CNG) expenditure will be around Rs 13.3 crore,around Rs 1.3 crore higher,while daily revenue from ticket sale remains static at Rs 1.1 crore. PMPML needs 82,000 litres of diesel a day.
Until May 31,it had been incurring,on an average,a monthly loss of Rs 44 lakh. Its monthly revenue was over Rs 34 crore and expenditure less than Rs 35 crore. The price hike will increase expenditure. We were incurring a monthly loss of Rs 44 lakh. Now we need to calculate our expenditure, said PMPML joint MD Satish Kulkarni.
PMPML officials said the losses are likely to increase three-fold. Revenue,primarily through tickets and ads,is likely to be same.
Officials said the loss is already preventing PMPMLs bid ensure that maximum buses run. PMPML sources said that every day,nearly 250 remain off roads. The reason is alleged to be inability to buy spare parts.
Kulkarni and chief engineer Sunil Burse refute the allegations. 15 per cent of buses remain off roads for maintenance and not because of other reasons. This is the norm with every transport undertaking, they said.
Prashant Inamdar of PMP Pravasi Manchi called it a serious problem. PMPMLs job is to bring maximum buses on roads. As per norm,PMPML should have 2,500 buses on roads,50 for every lakh population. Since Pune and PCMC areas have 50 lakh population,2,500 buses should be on roads.
Inamdar said PMPML had only around 1,200 buses. Even among these,if they say 15 per cent buses remain off roads that is unacceptable. It means there is some problem and PMPML must come clean, he said.
This exactly is the reason,said Inamdar,why peak-hour buses are jam-packed making commuters miserable. Besides,accidents are increasing as a result of pressure on drivers to make more trips, he said.
PMPML was formed in 2007. The government resolution states PMPML would get funds from PMC and PCMC. The civic bodies have ceased financial help. The financial aid was only for the first three years,which are over. We are not getting any funds from civic bodies, said Kulkarni,adding that they would soon raise the issue with the PMC and PCMC. Inamdar said PMC and PCMC should provide aid to PMPML.
PMPML chairman and managing director R N Joshi said that so far,there has been no plan to hike fares. Kulkarni said they were exploring the possibility of getting funds from civic bodies. We may soon hold a meeting, he said. PCMC chief Asheesh Sharma they would discuss PMPMLs financial condition in the next meeting.
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