Pune Municipal Corporation Approves Rs 200 Crore Payment to PMPML: Resolving Outstanding Debt

Pune Municipal Corporation (PMC) has taken a significant step towards resolving its outstanding debt with Pune Mahanagar Parivahan Mahamandal Limited (PMPML). The Standing Committee has approved a proposal for PMC to make a payment of Rs 200 crore to PMPML. This payment is part of the total outstanding amount owed by PMC, which currently stands at Rs 217 crore.

In an effort to address this financial obligation, PMC has reached an agreement with the Pimpri Chinchwad Municipal Corporation (PCMC). Under this agreement, PMC will bear 60 percent of the outstanding amount, while PCMC will bear the remaining 40 percent. This collaborative approach aims to alleviate the financial burden on PMPML, which has been grappling with a current account deficit of Rs. 696 crore 50 lakh in the financial year 2022-23.

The approval of the proposal by the Standing Committee marks an important milestone in the process of resolving the debt issue. The first payment of Rs 200 crore will aid in reducing PMC’s outstanding debt to PMPML. However, it is crucial to highlight that PMC still has an obligation to pay the remaining amount of Rs 217 crore before the end of the financial year 2023-24.

Fulfilling these financial obligations is of utmost importance for PMC, as it directly impacts the smooth functioning and long-term sustainability of PMPML. By settling its outstanding debt, PMC is demonstrating its commitment to supporting public transportation and ensuring the efficient operation of PMPML services.

The payment of Rs 200 crore signifies PMC’s dedication to resolving its financial responsibilities promptly. It also showcases the collaborative efforts between PMC and PCMC in addressing the financial challenges faced by PMPML. Such cooperation and commitment from the municipalities play a crucial role in maintaining and improving the quality of public transportation services in Pune.

As PMC continues to work towards fulfilling its remaining financial obligations, it is expected that this positive development will pave the way for a more stable and sustainable future for PMPML. The timely payment of the outstanding amount will enable PMPML to allocate its resources efficiently, invest in infrastructure, and enhance the overall passenger experience.

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