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.