PMT losses may go up to Rs 20 crore

PMT losses may go up to Rs 20 crore
EXPRESS NEWS SERVICE

PUNE, DEC 31: With a proposed increase of 158 buses to the PMT fleet, the losses of the organisation could go up to Rs 20 crore from the incurred losses of Rs 11 crore last year.

According to the budget presented by PMT's general manager Subhash Lolge on Thursday, the city's sole public transport system could be still in there despite the recent increase in bus fares.

Of the Rs 121,14,96,000 budget presented by the PMT, Rs 20 crores are indicated as losses that the organisation will incur in the coming financial year. Which means that the PMT will have to depend heavily on another bailout from the Pune Municipal Corporation.

This year, the PMT is asking for an additional 158 buses to its existing fleet while 58 old buses will be retired. With this, the fleet strength will go up to 832 buses.

The PMT, which has been in the red for nearly two years now, has been registering losses of nearly Rs five lakh every day. With the situation getting worse, the PMT had sanctioned a study to be conducted by theCentral Institute of Road Transport a few months ago.

The full report is expected to be submitted by the CIRT next month and several cuts in routes are expected to make the organisation more profit-oriented.

Meanwhile, the PMT has been initiating several measures to curb their losses. Recently, it also increased fares to garner more revenue. Other measures included introducing point-to-point busses which would stop on request and issuing passes on a daily and weekly basis.

However, a combination of the 40 per cent hike in diesel prices and the availability of other modes of transport like the six-seater autorickshaw seems to have had its toll on the PMT.

The increase in diesel prices has resulted in an increased expenditure of nearly Rs 34 crores which is expected to badly hit the PMT.