• Source:JND
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Pune News: Public transport in Pune and Pimpri-Chinchwad, managed by the Pune Mahanagar Parivahan Mahamandal Limited (PMPML), is on the brink of a fare hike. This comes as the corporation grapples with a operating loss of Rs 706 crore for the year 2023-24, contributing to an ongoing financial crisis that has been worsening for over a decade.

Fare Increase Under Consideration

The last adjustment to PMPML bus ticket prices occurred in 2014. However, due to escalating operational and maintenance costs, along with a steady decline in revenue, both the Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) are now contemplating another fare hike, as per Pune mirror report. Although PMPML has previously attempted to raise fares, public protests led to the cancellation of those plans. Yet, with losses continuing to escalate, municipal authorities are seriously revisiting the issue.

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A senior municipal official stated that a fare increase is being considered to help counter the growing deficit. The financial burden of PMPML's losses is primarily shared between the two municipal corporations, which cover 60 per cent and 40 per cent of the deficit, respectively. Despite financial support from the PMC and PCMC, the significant deficit persists, prompting the need for a fare revision.

Declining Revenue and Rising Losses

PMPML has been facing increasing losses for several years, a situation worsened by the COVID-19 pandemic, which drastically reduced passenger numbers during lockdowns. Although the corporation saw a slight revenue boost last year thanks to the introduction of e-buses and a restructuring of routes, the operating loss for 2023-24 remains at Rs 706 crore.

Impact on Services

PMPML operates approximately 394 routes within Pune and Pimpri-Chinchwad, catering to over a million passengers each day. Additionally, it provides transport services through 503 buses on 122 routes within the Pune Metropolitan Region Development Authority (PMRDA) limits. The long-distance routes in the PMRDA area are particularly costly. Efforts to cut expenses, including the closure of certain routes, were reversed after the Guardian Minister intervened.

PMPML has repeatedly sought financial assistance from PMRDA, requesting Rs 222 crore this year. However, PMRDA has shown reluctance to cover operational deficits, as its primary focus is on development rather than operational costs.

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Public Response and Opposition

The proposed fare increase has met with resistance from local residents and transport activists. Jugal Rathi, President of the PMPML Pravasi Manch, has condemned the PMPML administration for poor planning and high administrative costs, which he claims account for 50-60 per cent of total expenditures. He argues that improving service regularity and increasing passenger numbers could eliminate the need for a fare hike.

Rathi also suggested that if PMPML continues to lose money on PMRDA routes, those routes should be discontinued to reduce costs. He pointed out that the government-run ST Corporation already services these areas, urging PMPML to concentrate on Pune and Pimpri-Chinchwad.