Friday, July 01, 2011

Transport utility struggles to keep going as losses mount

Pune Mahanagar Parivahan Mahamandal Ltd (PMPML), facing a cash crunch, is staring at an increase in losses as the recent fuel price hike has pushed cost of running its buses higher. It is already making a loss of around Rs 44 lakh a month. The figure is set to mount three-fold that too, when around 250 of the cash-strapped transport utility’s buses are off the roads every day.

The Pune and Pimpri-Chinchwad civic bodies halting financial assistance has made the problem severe for PMPML.

PMPML officials said the recent hike in diesel meant the monthly fuel (diesel and CNG) expenditure will be around Rs 13.3 crore, around Rs 1.3 crore higher, while daily revenue from ticket sale remains static at Rs 1.1 crore. PMPML needs 82,000 litres of diesel a day.

Until May 31, it had been incurring, on an average, a monthly loss of Rs 44 lakh. Its monthly revenue was over Rs 34 crore and expenditure less than Rs 35 crore. “The price hike will increase expenditure. We were incurring a monthly loss of Rs 44 lakh. Now we need to calculate our expenditure,” said PMPML joint MD Satish Kulkarni.

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