Pune: The Pune Mahanagar Parivahan Mahamandal Limited (PMPML) is grappling with a staggering financial crisis, as its total operational deficit has surged to ₹766 crore, according to the latest 2023-24 audit report presented to the Standing Committee. The report, compiled by PMC Chief Auditor Jitendra Kolbe, highlights serious inefficiencies, including excessive non-passenger travel (dead kilometers) and rising operational costs.

A major concern is the 13.05 lakh kilometers of dead kilometers—non-passenger travel—which has resulted in an additional ₹24.68 crore loss. In 2023-24, PMPML buses covered 12.17 crore kilometers, out of which 1.305 crore kilometers were non-revenue generating routes.

Adding to this, frequent breakdowns of old buses have negatively impacted PMPML’s service efficiency. The total per-kilometer cost stands at ₹114.24, while the revenue per kilometer is only ₹53.28, leading to a ₹60.96 loss per kilometer.

PMPML has been operating at a loss for over a decade, with the deficit jumping from ₹99 crore (11 years ago) to ₹766 crore in the current fiscal year. PMC and Pimpri-Chinchwad Municipal Corporation (PCMC) provide financial support, covering 60% and 40% of the operational loss, respectively. However, the majority of the burden falls on PMC.

The deficit has worsened significantly in recent years. In 2022-23, PMPML recorded a ₹726.78 crore operational loss, which has now increased by ₹40 crore in 2023-24.

Key Reasons Behind the Growing Losses

• No fare revision for tickets and passes

• Declining ticket sales and pass revenue

• Weak enforcement by ticket inspection squads

• No significant cost-saving initiatives in operations

• Increase in salary expenses after implementation of the Seventh Pay Commission

• ₹24.68 crore loss due to dead kilometers (non-passenger travel)

• Aging buses frequently breaking down, reducing overall efficiency

Proposed Measures to Reduce the Deficit

• Capping unnecessary expenses and increasing cost-efficiency

• Strengthening ticket inspection teams to curb revenue leakages

• Reviewing and adjusting ticket and pass fares to increase revenue

• Reducing dead kilometers and optimizing route planning

• Increasing the number of operational buses to enhance service efficiency

• Repairing and maintaining aging buses to prevent frequent breakdowns

• Exploring commercial use of PMPML assets to generate additional revenue