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PMC to Give PMPML ₹200 Crores in Operational Losses
In a significant move, the standing committee of the Pune Municipal Corporation (PMC) has approved a proposal to share 60% of the Pune Mahanagar Parivahan Mahamandal Limited's (PMPML's) operational losses. This decision means that the PMC is now obligated to pay ₹200 crores to the PMPML, assisting in covering a portion of its financial setbacks. This article delves into the details of this development and its implications for the public transport utility.
The Pune Municipal Corporation (PMC) and the Pimpri-Chinchwad Municipal Corporation (PCMC) jointly hold shares in the Pune Mahanagar Parivahan Mahamandal Limited (PMPML), the city’s public transport utility. The PMPML has been experiencing operational losses, and as a result, the PMC has decided to contribute towards alleviating its financial burden.
Background
The PMPML plays a crucial role in providing transportation services to the residents of Pune. However, due to various factors, it has been facing significant financial challenges. To address this issue, the PMC and PCMC have been exploring strategies to support the PMPML and ensure its continued operation.
The Proposal for Sharing Operational Losses
Recognizing the financial strain faced by the PMPML, the PMC proposed sharing a portion of the operational losses. The aim was to ease the burden on the transport utility and ensure its sustainability in the long run. The proposal suggested that the PMC bear 60% of the PMPML’s operational losses.
Approval by the PMC Standing Committee
After careful consideration, the standing committee of the PMC, headed by municipal commissioner Vikram Kumar, approved the proposal. This decision indicates the PMC’s commitment to the welfare of the PMPML and its determination to support the public transport system.
The PMC’s Commitment
As a result of the standing committee’s approval, the PMC is now bound to contribute ₹200 crores towards the PMPML’s operational losses. This financial assistance will be instrumental in bridging the gap and ensuring the continued functioning of the public transport services provided by the PMPML.
The PMPML’s Operational Losses
The PMPML has incurred substantial operational losses amounting to ₹696.50 crores during the fiscal year 2022-23. These losses have put significant strain on the financial resources of the transport utility, necessitating external support to maintain its operations effectively.
Request for Assistance
Understanding the gravity of the situation, the chairman and managing director (CMD) of the PMPML, Om Prakash Bakoria, approached the PMC with a request for financial assistance. Given the PMC’s significant stake in the PMPML, the request was made for the PMC to share a portion of the operational losses.
The PMC’s Payment
Out of the PMC’s share of ₹417.90 crores (60% of the operational losses), an initial payment of ₹200 crores has already been made. The remaining ₹200 crores is scheduled to be paid by the PMC over the next eight months, as per the instructions of the municipal commissioner.
Conclusion
The decision of the PMC standing committee to contribute ₹200 crores towards the operational losses of the PMPML reflects a commitment to the development and sustenance of public transport in Pune. By shouldering a portion of the financial burden, the PMC aims to ensure the uninterrupted provision of transport services to the citizens and improve the overall transportation ecosystem.
