To generate more non ticket revenue, PMPML plans to develop depots with 2.5 FSI
After PMPML recorded a loss of Rs 306 crore in 2017-2018, the Pune and Pimpri Chinchwad Municipal Corporation and the Maharashtra government approved 2.5 FSI for the land owned by PMPMLpune Updated: Dec 29, 2018 15:03 IST
The Pune Mahanagar Parivahan Mahamandal Limited (PMPML) is planning to develop all its depots by using the recently approved 2.5 FSI (Floor Space Index). In Pune city, the FSI is one, so for every square feet, construction of one square feet is allowed. The intention of allowing additional FSI to PMPML properties is to increase the non ticket revenue.
After PMPML recorded a loss of Rs 306 crore in 2017-2018, the Pune and Pimpri Chinchwad Municipal Corporation and the Maharashtra government approved 2.5 FSI for the land owned by PMPML. This will help the PMPML undertake more construction on their plots and will also help generate more revenue by leasing out the newly constructed properties.
Floor Space Index typically indicates how high a developer can build on a plot. It is the ratio of total built-up area to the size of the plot.
Siddharth Shirole, PMPML director, said, “To increase the non ticket revenue, PMPML has planned to develop all its plots by using additional FSI. The proposal for developing the depot is almost ready and very soon it would be put in front of the authorities concerned for approval.”
Shirole said that right now the PMPML is currently generating only six per cent non ticket revenue. But if PMPML develops their properties and rents them out, PMPML’s non ticket revenue would reach 35 per cent of the total income, he added.
Shirole said that all the PMPML properties are at prime locations. If they get developed, the available space would attract rent and it would be a permanent source of income for the PMPML.
The PMPML has prepared a detailed plan about the development of the depots. The depot will be on the ground floor with all modern facilities. The first floor would be reserved for parking for vehicles of commuters and on the second floor, the properties would be rented out for commercial purposes.
The PMPML own depots at Swargate, Katraj, Kothrud, Shivajinagar, Market Yard, Hadapsar, and Nigdi.
Chief Minister Devendra Fadnavis is also keen to develop all these plots by using 2.5 FSI as it would help PMPML get a permanent source of income.
Advertisements on bus stops, buses to reduce losses
The audit department of the Pune Municipal Corporation (PMC) has suggested that the Pune Mahanagar Parivahan Mahamandal Limited (PMPML) should concentrate on increasing revenue through advertisements.
The audit department completed reviewing the accounts of the PMPML and found that the PMPML is looking at a Rs 306 crore loss in the financial year 2017-18. Considering this, auditor Ambrashih Galinde suggested various measures to the PMPML officials in order to overcome these financial losses.
Accounts department said that along with ticket revenue, PMPML needs to concentrate on generating revenue from other sources like renting out properties and advertisements on PMPML properties, including buses and bus stops.
According to the accounts department , PMPML generated only Rs 9.77 crore as revenue from advertisements in the year 2017-18. In the year 2016-17, the revenue generated from advertisements was Rs9.83 crore.
The accounts department suggested that if the PMPML follows the advertisement policy framed by the Pune Municipal Corporation (PMC), then the advertisement revenue will increase four times. The PMPML needs to make all its buses available for advertising.
PMPML director Siddharth Shirole, said, “I did not go through the details of the report from the accounts department, but I will definitely study the report and try to execute various measures suggested by the accounts department. Our first priority was to increase the PMPML bus fleet and for that the tendering process is going on for purchasing new buses.”
Overcoming financial losses
₹306.27 crore - loss in 2017-18
₹346 crore - loss in 2016-17
Income from ticket sale
₹424.58 crore in 2015-16
₹420 crore in 2016-17
₹445.40 crore in 2017-18
Revenue from advertisements
₹9.83 crore in 2016-17
₹9.77 crore in 2017-18
Accounts department suggested utilising all the bus stops and PMPML buses for advertisement which will help to increase revenue by 4 times
What is FSI?
FSI or Floor Space Index typically indicates how high a developer can build on a plot. It is the ratio of total built-up area to the size of the plot. In Pune city, the FSI is 1, so for every square feet, construction of one square feet is allowed.
Benefits of developing depots by using 2.5 FSI
Use of additional FSI will be allowed for construction on plots reserved for PMPML bus terminals and depots.
The additional FSI will help PMPML in creating better infrastructure for transport utility.
The PMPML which is running in huge losses will be able to raise the revenue from the properties that will be developed using the extra FSI. PMPML can lease out this additional construction for private and government firms.
All PMPML plots are at main market places like Swargate, Katraj, Kothrud, Shivajingar, Market Yard, Hadapsar, Shivajinagar and Nigdi which will help to get more rent.
There would be depot on ground floor which will have all modern facilities.
The first floor would be reserved for parking for commuter vehicles.
On the second floor properties would be erected which can be rent out for commercial purpose.
First Published: Dec 29, 2018 15:02 IST