Lack of funds forces PMPML to delay worker salaries

Aug 21, 2012, 07:36 IST | Sukirt D. Gumaste

Officials from the Pune Mahanagar Parivahan Mahamandal (PMPML), which is currently suffering a loss of Rs 2 crore to Rs 3 crore every month, has requested the state waive sales tax on diesel.

The situation is such that the PMPML is delaying monthly salaries of its employees. The PMPML needs diesel worth Rs 100 crores a year, on which the state charges 27 per cent tax. 

If the state decides to waive the tax, then the ailing unit can save up to Rs 27 crore per annum. Recently, Prashant Jagtap, one of the PMPML directors, met Deputy Chief Minister Ajit Pawar and submitted the proposal.

In dire straits
“The PMPML is losing anywhere between Rs 27 to Rs 30 every year. It is becoming very difficult to maintain the buses and provide quality service. We don’t want to hike ticket price because it will directly affect the commuters. We want the state to waive sales tax on diesel for the next 10 years. The PMCand the PCMC are yet to clear their dues worth Rs 112 crore.

Both the corporations had announced a free bus pass scheme for school students last year and the money was to be paid from their annual budgets. But none of the civic bodies have paid a single rupee so far,” Jagtap said. “No public transport can survive without government’s assistance. If the municipal corporations stop the payment, then we’ll have to shut down the service.”

Another PMPML officials said the PMC had bee giving them Rs 2.5 crore a month. But when the officials were reminded of pending dues they threatened to stop the grant from the next month. “If they stop paying us, we won’t be able to pay our employees,” the official said. PMPML’s worker union secretary A N Anpur said in State Government Resolution (GR) it was clearly mentioned that the PMC should grant Rs 2.5 crore a month to the PMPML for the year 2011-12 and 2012-13. 

The PMPML needs Rs 19 crore a month to pay to its staff of 10,000-strong employees. In addition, the state had approved the Sixth Pay Commission to these workers in 2005. But the PMPML implemented it only last year. “Additional amount as per the Sixth Pay Commission is pending for the last 56 months. Government should take the responsibility of clearing it,” Anpur said.

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