The Indian Express             18.11.2013

As losses mount, PMPML awaits Rs 100-cr aid from PMC, PCMC

PMPML, the city’s transport undertaking which ferries 12 lakh
passengers daily, is sinking into what officials describe as a financial
soup. Even as monthly losses are being pegged at Rs 9 crore — as the
gap between income and expenditure widens — PMPML is waiting for Rs
100-crore financial assistance from Pune Municipal Corporation and the
Pimpri-Chinchwad Municipal Corporation to salvage the situation.

While PMPML officials are blaming rising diesel prices and
increased staff salaries for its mounting ills, civic activists blame
the management for lack of financial discipline. “Since January 2013,
diesel price has been hiked 14 times. There has been a Rs 31 per litre
hike. Because of the implementation of the Sixth Pay Commission, we have
to give increased salaries to staff. In addition, dearness allowance
increases twice a year,” said PMPML joint managing director Pravin
Ashtikar.

Civic activists, however, disagree. “PMPML should first account
for money it receives whether as income through ticket sale or
advertisements or assistance from state and Central governments, and
civic bodies,” said Jugal Rathi of PMP Pravasi Manch. “An investigation
should be launched into the way PMPML has handled its finances since
2007 when it came into being. Citizens have a right to know how the
public transport body is being run,” he added.

PMPML officials said they owe Rs 76 crore to contractors and
other private bodies and if this is not paid, a large number of buses
will go off roads. “Our outstanding bill is rising. The highest amount
of bill of Rs 8 crore is to be paid for purchasing CNG for over 400
buses. The second highest amount of Rs 3 crore relates to hired buses as
also Rs 3 crore for buses taken on PPP basis,” Ashtikar said.

“From 1,300, we are now running 1,100 buses daily. In the past
couple of months, 200 buses have gone off roads and we fear more will
have to be stopped if the crisis persists. This is because contractors
are refusing to provide spare parts since they have not been paid
outstanding dues. Our stores’ outstanding is Rs 76 lakh while the chief
engineer’s office owes Rs 60 lakh… PMPML purchases 5,800 spare parts
on a regular basis,” an official said.

Stressing that PMPML was not looking at hiking the fares, officials
believe the only way they can get out of the mess is from the financial
assistance from PMC and PCMC. “Last year, we had sent a proposal to the
state government for Rs 100 crore annual assistance from the civic
bodies — Rs 50 crore from each. The proposal has apparently been okayed.
We are awaiting the copy of the approval,” said Ashtikar.

Currently, PMC and PCMC pay only as reimbursement for free passes
given to students. “Otherwise they don’t pay us anything,” officials
said. PMPML officials said the situation has become worse after they
paid Rs 22 crore by way of Diwali bonus. “BEST in Mumbai has not paid
Diwali bonus. This amount could have been paid later when the situation
improved. However, due to pressure from unions, PMPML had to pay bonus,”
the official said.

Rathi said PMPML is a private company now, which is making
losses. “What was the need for paying bonus when its coffers are
running empty? PMPML lacks financial discipline. At a time when it
should have held onto every penny, it was spending carelessly,” he said.

Civic activists have meanwhile urged the state government to
direct PMC and PCMC to reserve five per cent of their budget for PMPML.
Prashant Inamdar of Pedestrians First said, “PMC has a budget of over Rs
3,000 crore and PCMC Rs 2,000 crore. If they reserve five per cent of
their budgets for PMPML, it will get Rs 250 crore. Deputy Chief Minister
Ajit Pawar directed PMPML to reserve two per cent of its budget for
PMPML, but we are seeking five per cent as this will solve all problems
of PMPML.”

But Rs 250 crore, said Inamdar, should be given to PMPML on the
condition that for the next five years PMPML will not hike fares,
drastically improve its services and reduce its breakdowns. “Every
month, PMPML should provide details of the number of passengers that
increased, number of breakdowns it reduced and how it has been able to
control losses,” said Inamdar.

Senior PMPML officials said the annual loss stands at Rs 108 crore. “If
PMC and PCMC pay Rs 250 crore, we will be left with huge surplus. This
will help us buy buses, spare parts, get skilled staff and improve
overall infrastructure. This also means, PMPML management and
administration will not have to bother about financial aspect and will
get enough time to improve services. Currently, PMPML management is
focussed on monetary aspect and improving services is not a priority,”
said an official.