Pune has kept fares the same for air-conditioned and non-air-conditioned buses, a model aimed at making public transport more accessible.
PMPML currently operates about 620 electric buses, nearly 40% of its fleet.
Daily ridership has remained above 11 lakh even after the Metro was introduced, officials said.
Pune plans to expand its bus fleet further by the end of 2027, though land and charging infrastructure remain key challenges.
Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) in Maharashtra has adopted the same fares for air-conditioned and non-air-conditioned buses, a model officials say has helped it retain ridership despite the introduction of the Metro.
Unlike cities such as Delhi, where commuters pay different fares for non-AC and electric AC buses, Pune charges the same fare for both services. In the national capital, riders are charged a minimum fare of Rs 5 for a non-AC bus and Rs 10 for an AC electric bus — double the fare. Transport experts say the Pune model could help encourage public transport use at a time when bus ridership has been declining in several cities across India.
With a fleet of 620 electric buses, PMPML has adopted e-buses on a significant scale. They account for nearly 40 per cent of its total fleet of around 1,600 buses. Pune began its transition to electric public transport with 150 e-buses in 2019.
“Keeping fares the same for AC and non-AC buses is important because both operate on the same routes. A higher AC fare effectively reduces the choice and frequency available to commuters unwilling to pay more, while those willing to pay more still have fewer AC buses to choose from,” said Ranjit Gadgil, programme director at Parisar, an organisation that works on mobility governance.
“A uniform fare gives everyone access to the full frequency of the service. Ultimately, like the Metro, buses should offer a uniformly high quality of service at a uniform fare. Raising AC fares to increase revenue could instead reduce overall ridership,” he added.
Gadgil said that where AC buses charged higher fares, commuters who wanted to use them could still have fewer buses to choose from despite paying more.
Such concerns contributed to the decision to keep fares relatively low.
The intention was to provide better services without increasing fares, which remained at Rs 10 for the first 5 km, said Alice Pore, joint managing director of PMPML. “The move has proven successful as PMPML sees over 1.1 million passengers a day after Metro was introduced, against 1.2 million passengers before Metro services began,” she said.
PMPML had managed this by controlling inventory and management expenses and diverting resources towards improving services, Pore said.
PMPML now planned to add another 35 electric buses by December 2026, taking its electric fleet to about 650 buses, which was expected to comprise around 30 per cent of its total fleet.
A further 1,000 buses would begin arriving from February 2027 and continue through the end of the year. Along with 1,000 CNG buses and another 500 buses under the Gross Cost Contract (GCC) model, Pune was expected to add almost 2,500 buses to its fleet by the end of 2027.
The GCC model is a public-private partnership framework used to deploy buses, including electric buses, without requiring public transport agencies to bear the full upfront capital cost.
Pore, however, said acquiring enough land to accommodate the expanding fleet and setting up charging stations remained major challenges.
“A 200-bus fleet requires nearly 12-15 acres of land. PMPML is in the process of acquiring such land that would ensure efficient functioning of the buses, scaling EV adoption to 41 per cent in line with the Maharashtra state EV Policy 2025,” she added.
Pore said PMPML was also considering new revenue streams beyond advertising, including monetising its depots along the lines of Metro stations.