PMPML leases vacant depot spaces to raise revenue

The initiative is aimed at creating an additional and sustainable source of income while reducing dependence on government support for day-to-day operations.

Pune -

Grappling with mounting financial losses and an annual subsidy requirement of nearly ₹800 crore, the Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) has initiated a major non-fare revenue generation drive by monetising its existing infrastructure across Pune and Pimpri Chinchwad. The transport undertaking – which relies on 60% subsidy from the Pune Municipal Corporation and 40% subsidy from the Pimpri-Chinchwad Municipal Corporation – has started renting out vacant office spaces, commercial shops and other unused areas at its bus depots at prevailing market rates.

The initiative is aimed at creating an additional and sustainable source of income while reducing dependence on government support for day-to-day operations. The undertaking owns a significant amount of commercial infrastructure spread across its major depots, including Deccan, Hadapsar, N T Wadi, Kothrud, Swargate, Nigdi, Bhosari and several other locations. Over the years, a number of office spaces, shops and utility areas have remained vacant or underutilised despite being located in commercially viable areas with high footfalls. The PMPML has now begun identifying such properties and leasing them through a transparent process at market rates to maximise returns.

PMPML director Ajay Khedekar said, “PMPML possesses valuable infrastructure at several strategically located depots across Pune and Pimpri-Chinchwad. Many office spaces, commercial shops and other built-up areas are either lying vacant or are not being utilised to their full potential. Instead of allowing these public assets to remain idle, we have decided to monetise them by renting them out at prevailing market rates through a transparent process. This initiative is an important step towards strengthening PMPML’s financial position without placing any additional burden on passengers”.

This exercise is part of a broader strategy to diversify revenue sources beyond passenger fares, which alone are insufficient to meet the corporation’s growing operational expenditure. Rising fuel costs, maintenance expenses, employee salaries and fleet expansion have significantly increased PMPML’s financial burden in recent years. While the civic bodies continue to provide annual subsidies, officials believe strengthening non-fare revenue will improve the undertaking’s long-term financial sustainability and enable better utilisation of public assets.

The corporation expects the initiative to generate around ₹3 crore annually in the initial phase. Officials added that more commercial spaces may be brought under the monetisation plan in the coming months after a detailed assessment of available infrastructure across depots. The additional revenue will be utilised for improving public transport services, maintaining infrastructure, and supporting operational expenses.

“Our immediate target is to generate nearly ₹3 crore in annual revenue through this initiative. While this amount may appear modest compared to PMPML’s overall financial requirements, it marks the beginning of a sustained effort to enhance non-fare revenue. Every additional source of income will help reduce dependence on subsidies from the municipal corporations and improve the undertaking’s financial resilience. We are also reviewing other available assets across depots that can be commercially utilised in the future. Our objective is to ensure that every public asset owned by PMPML contributes to strengthening the organisation while enabling us to continue providing reliable and affordable public transport services to commuters,” Khedekar said.