Puneites’ Travel to Get Costlier: PMP Bus Fare Hike Likely!

Operating Loss Over 706 Crores, No Fare Hike Since 2014, Says Administration

Adhikrao Dive PatilDecember 7, 2024

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Puneites' Travel to Get Costlier: PMP Bus Fare Hike Likely!

Pune: Pune and Pimpri-Chinchwad are served by the public transportation service PMP (Pune Mahanagar Parivahan Mahamandal Ltd). Every day, at least 1 million passengers travel via PMP buses in these two cities. However, PMP’s operating losses have been steadily rising over the past few years. Many PMP bus routes are operating at a loss, and maintenance costs are increasing. This year, PMP’s operating loss has exceeded 706 crore rupees, prompting discussions about a possible fare hike. The last fare hike occurred in 2014, according to the municipal administration.

Over the past decade, PMP has made several attempts to increase fares. However, these proposals were withdrawn after public opposition. But now, in light of the current financial loss, a fare hike is being considered to cover the deficit, according to a senior official from the municipal corporation.

PMP has faced significant financial difficulties in recent years. With approximately 1,700 buses operating on around 394 routes across Pune, Pimpri-Chinchwad, and PMRDA (Pune Metropolitan Region Development Authority), PMP has seen a continual rise in its operational losses over the past ten years. The situation worsened during the pandemic, when PMP services were fully shut down, leading to a drop in passenger numbers. This had the most severe impact on PMP’s revenue. As a result, in 2021-22, PMP’s losses crossed 718 crore rupees, with the Pune and Pimpri-Chinchwad municipal corporations covering the losses.

However, with the addition of electric buses and some route restructuring, PMP’s revenue increased last year. Consequently, the operating loss reduced to 646 crore rupees. But this year, the operating loss has surged again, reaching 706 crore rupees, putting more financial strain on both Pune and Pimpri-Chinchwad municipal corporations. According to the rules, both municipal corporations share the operational losses—60% and 40% respectively. Despite providing funding to PMP, there is still a shortage of resources, which has led to discussions about raising the ticket fares. Last year, a proposed fare hike was postponed due to a loss of 187 crore rupees from PMRDA. However, this year the operating loss has once again surpassed 706 crore rupees.

PMP Services in PMRDA Area Facing Difficulties

In addition to the Pune and Pimpri-Chinchwad municipal areas, PMP operates bus services on 122 routes within the PMRDA jurisdiction using 503 buses. Many of these routes are long-distance, requiring PMP to incur significant costs. In an effort to reduce expenses, some routes in the PMRDA area were closed last year, but the services were reinstated after the intervention of the then Guardian Minister. Last year, PMP requested 187 crore rupees from PMRDA, and this year the demand has increased to 222 crore rupees. However, since PMRDA is merely a development authority and not a funding body for operational losses, it is avoiding responsibility for covering these deficits, further increasing the likelihood of a fare hike.

Protest Against Fare Hike

“Due to the mismanagement of PMP administration, the corporation is facing financial losses. About 50-60% of the total expenses are administrative costs. Rather than focusing on increasing PMP’s revenue, the administration seems more interested in showmanship. When an officer performs well, they are transferred. If the administration is considering a fare hike, we will oppose it. If the bus services are streamlined, there will be no need for fare increases. A fare hike will only lead to a further reduction in passenger numbers. PMP has failed to increase its passenger count for many years. No one is considering why the number of passengers is not increasing. If the PMRDA services are causing losses, then those routes should be shut down. Your work should be confined to Pune and Pimpri-Chinchwad cities, as the State Transport Corporation handles routes under the PMRDA jurisdiction,” said Jugal Rathi, President of PMP Passenger Forum.