Are you sure about the bold part?? I mean come on, you can maintain a Honda city with that kind of money for service. To me, it sounds like lot of exaggeration, no offense meant. If you go for 4 or 5 of these type of services, i'm pretty sure you will end up with a brand new bike, I mean literally you can change most of the parts in a bike with that kind of money. And yeah, may be it's a bit too much to expect 45-50kmpl from 180cc bike.

TS, you got pretty decent options for that kind of budget.

Look at bikes like P150/Suzuki GS150R/Hunk/CBZ/Unicorn/Discover 150/Yamaha SZ-R. Since you got enough moola, you can go with GS150R/P150. They meet your expectations of mileage, will be a real upgrade for you as you are already using 125cc bike. Looking at spares availability/SVC availability it's better to go with P150. It's tried and tested, dirt cheap to maintain. I've used P135LS for almost a year, my only bills were for fuel and oil change. So, I can confidently say you can buy a Bajaj bike without hesitation.

But, yeah it's always better to take a test drive of available options, which will help you a lot.

You seem like you have never had any other bike other than the pulsar. I agree that Bajaj bikes are at par with any other bikes of same category. Although except few drawbacks which any bikes can have like the hard seats on P135 I dont know of any major issue which would make anyone say don't buy Bajaj especially for what price he gives you the bike.
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Quality of bajaj is not even at par with any honda, suzuki or even HH motorcycles. for example- chain life, timing chain life, engine noice(after 1 year of usage), finishing of product, durability of parts, silencer rusting issues.............. But still there was silencer rusting, front shocker leakage, oil leakage from head(top) of engine, timing chain noice and few more.
Even those who are using current crop of platina and pulsars are saying them chinese. You can easily hear timing chain noice of bajaj motorcycles after few thousand kms.
Even I want to buy bajaj products because it is and Indian company. But they are changing models like anything and cannot even maintain spare for them.

TS.. big sorry for going OT, but posts like this often get better of me
Pulsars only got better with time. I don't understand where you got this engine noise thingy, and what's that got to do with quality of the bike. It depends on how you maintain a bike.

Rusting is prevalent in all bikes, don't believe me? just look around, you will find even Karizma's with rusting silencer.........since you mentioned about spares, Bajaj spares for current models are available everywhere, if your model of Discover is discontinued, that's another story. Just compare cost of discpads of Unicorn, with that of Pulsar. You will know why maintaining Pulsar is so light on pocket.

You seem like you have never had any other bike other than the pulsar. I agree that Bajaj bikes are at par with any other bikes of same category. Although except few drawbacks which any bikes can have like the hard seats on P135 I dont know of any major issue which would make anyone say don't buy Bajaj especially for what price he gives you the bike.
It was pure decision of what was good at that point, nothing to do with Bajaj or quality.

Well, I did ride lot of other bikes, but owned only P135LS. With my limited riding experience, Pulsars were the most impressive.