Special PMC GB to decide on ₹850-crore PMPML subsidy

To address the issue, PMC has convened a special General Body (GB) meeting on July 20, where the pending subsidy proposal is expected to be placed for approval

The Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) is facing a severe financial crunch after the Pune Municipal Corporation (PMC) withheld its annual operational subsidy of around ₹850 crore for 2025-26. The delay has strained the public transport utility’s cash flow and day-to-day finances as it prepares for a major expansion of services.

Once cleared, the funds are likely to be released to PMPML. (HT)

To address the issue, PMC has convened a special General Body (GB) meeting on July 20, where the pending subsidy proposal is expected to be placed for approval. Once cleared, the funds are likely to be released to PMPML.

PMPML’s financial position, expansion plans and long-term sustainability are expected to be among the key agenda items. Chairman and managing director (CMD) Mahesh Awhad has been asked to attend the meeting to brief corporators on the undertaking’s finances, answer queries and outline its roadmap.

The meeting assumes significance as PMC bears 60% of PMPML’s operational deficit, while the Pimpri-Chinchwad Municipal Corporation (PCMC) contributes the remaining 40%.

PMPML director Ajay Khedekar said both civic bodies should have a clear understanding of the undertaking’s finances and plans, particularly as its fleet is set to expand.

“A special General Body meeting has been convened on July 20 to discuss PMPML’s financial position and future planning. We have requested PMPML CMD Mahesh Awhad to remain present so that the administration can provide detailed explanations and respond to the queries of elected representatives. Since PMC contributes 60 per cent of PMPML’s operational deficit and PCMC bears the remaining 40 per cent, both municipal corporations should have complete clarity on the organisation’s finances and future plans,” he said.

PMPML’s financial burden is expected to rise with the proposed induction of nearly 1,000 buses under the Pune Metropolitan Region Development Authority (PMRDA) project. While the expansion aims to improve public transport and connectivity across the Pune Metropolitan Region, it will significantly increase expenditure on manpower, maintenance, fuel or electricity, depot infrastructure and other recurring costs.

Khedekar said the expansion made detailed financial planning essential to ensure operational sustainability without compromising commuter services.

PMPML is also working to strengthen non-fare revenue through commercial use of its properties and expansion of tourism services.

Officials said monthly revenue from tourism buses has risen from about ₹27 lakh to nearly ₹68 lakh in recent months. The undertaking has also started monetising commercial properties that had remained vacant for years, a move expected to generate at least ₹2 crore annually.

“The organisation is also working on improving commuter convenience to increase ridership and create sustainable revenue. Among the proposals under consideration are dedicated Metro feeder shuttle services to strengthen first- and last-mile connectivity and the installation of digital bus shelters equipped with real-time passenger information systems, on the lines of those at Pune Metro stations. These initiatives would not only enhance the passenger experience but also improve the financial sustainability of PMPML by attracting more commuters to the public transport network,” Khedekar added.