Rs 738-cr fixed assets for transport utility

The PMPML is now in possession of 22 prime properties,which the erstwhile PMT had handed over. The PMPML has used 6.5-lakh sq. ft of space from a land bank of 11-lakh sq ft. The transport utility is also in possession of 13 properties that the PCMT handed over. The valuation according to the ready reckoner rates is Rs 272 crore while the market rate is pegged at Rs 738 crore.

Pimpri-Chinchwad Mayor Yogesh Behl,who is also a member of the board of the directors of PMPML,said,“To generate additional revenue,there is an option of developing the plots on build-operate-and transfer basis. Though this revenue would not be substantial,but it would help as from the 2010-2011 fiscal,the Pune Municipal Corporation (PMC) and the Pimpri-Chinchwad Municipal Corporation (PCMC) would not be giving financial aid to PMPML.

Also,all the land in possession of the PMPML is reserved for bus terminals or depots. As per the Bombay Provincial Municipal Corporation Act,the land use cannot be changed. So,after studying these provisions a decision would be taken on how to develop the plots.”

The two transport utilities,PMT and PCMT,were merged on April 19,2007 after the state government’s approval.

The company was formed on the lines of BEST,the public transport utility of Mumbai,which is an independent company providing transport services in the city. All employees and assets – immovable and movable – of PMT and PCMT were transferred to the PMPML. It was decided then that the PMC and the PCMC would hold shares in the company.

The shares would be equivalent to the amount of assets that the municipal corporation contributed at the time of the formation of the PMPML.

PCMC officials said at the time of the merger,the fixed assets of the PMT stood at Rs 121.80 crore while other assets were pegged at Rs 59.66 crore. While the fixed assets of the PCMT were worth Rs 22.4 crore and other assets were valued Rs 16.43 crore. The merger was done with the objective that the transport utility would be able to work efficiently and provide better services in Pune and Pimpri-Chinchwad and make a profit.

Independent corporator and social activist Maruti Bhapkar said,“The transport utility has been touching new lows in the past three years. The financial condition of the transport utility is poor. After the formation of the PMPML,it was decided that the PMC and PCMC would financially support the utility for a three-year period,which ended in March 2010. This was because we felt the PMPML would take three years to streamline operations and turn profitable. Thus,from this year,the municipal corporation is stopping all aid to PMPML and so a provision regarding the same will not be made in this year’s budget. Till last year,the PCMC was paying PMPML Rs 1 crore every month. Now,the PMPML will have to sustain its operations from its internal accruals.”