Audit report: ‘PMPML should recover most of its operational costs from ticket fares’https://indianexpress.com/article/cities/pune/pmpml-should-recover-most-of-its-operational-costs-from-ticket-fares-5509317/

Audit report: ‘PMPML should recover most of its operational costs from ticket fares’

In the audit report of PMPML for 2017-18, the chief auditor of Pune Municipal Corporation (PMC) has pointed out the need to boost revenue collection and take neccessary steps to reduce losses.

The PMC also runs a health insurance cover for all civic employees, wherein, it bears 90 per cent of the total expenditure of hospitalisation.
The PMPML also needs to adopt a policy to increase its revenue from advertisments on buses, bus stops and hoardings in the transport body’s premises, stated the report. (File)

The Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) has been urged to ensure that 80 per cent of its total operational costs is recovered from bus fares and there are fewer leakages in the revenue collected from fares.

In the audit report of PMPML for 2017-18, the chief auditor of Pune Municipal Corporation (PMC) has pointed out the need to boost revenue collection and take neccessary steps to reduce losses. “The operational loss of PMPML for 2017-18 was Rs 268.33 crore. The operational cost was Rs 854.94 crore while revenue from tickets was Rs 586.61 crore,” stated the report.

It said that 80 per cent of the total operational cost of PMPML should come from the ticket fare and the transport body should strengthen its ticket inspection squad for that. While the earlier hike in PMPML ticket fares — 54 per cent in 2014 — was a considerable one, it didn’t reflect much in the revenue from tickets. The report said there was a need to plug leakages in the revenue collected from ticket fares.

The PMPML also needs to adopt a policy to increase its revenue from advertisments on buses, bus stops and hoardings in the transport body’s premises, stated the report. It said there are about 2,000 buses and 5,000 bus shades of PMPML, and if they are used efficiently for advertisings, the revenue would increase by four times, given the current market rate.

Advertising

Last year, the PMPML made only 812 buses available for advertisments.

The report suggested that PMPML should also increase its revenue from its leased properties by charging as per the current market rates. The PMPML earned Rs 10.38 crore from lease collection, while it is yet to collect Rs 4.60 crore in pending dues from 96 commercial properties in nine of its buildings in the city.

The audit report urged the PMPML to ensure that maximum buses of the fleet should ply on roads every day. Of the total 2,027 buses in the PMPML’s fleet, an average of 602 buses — 29.7 per cent of the fleet strength — have been off the roads.

The bus routes also have to be ‘rationalised’ and the routes with maximum losses should be discontinued, stated the report.