Losing 82% revenue in pandemic times, BMRCL looks to Karnataka govt for loan

With the pandemic paralysing its operations, the BMRCL is looking at the government to raise loans.

The metro company requires at least Rs 300 crore to manage staff salaries, maintenance and servicing of loans.

As it crippled Namma Metro’s services last year, the Covid-19 outbreak forced officials to operate the trains for limited hours and below its ferrying capacity due to the restrictions. This meant the total revenue, including non-fare revenue, dropped by a whopping 82%.

In 2019, the Bangalore Metro Rail Corporation (BMRCL) registered a marginal revenue growth of Rs 418.78 crore with expectations that the growth trend would continue.

But in 2020, the pandemic knocked down the figures to Rs 78.92 crore with officials not too hopeful of the figures getting better in the current financial year.

Even in April when the metro services functioned partially, the revenue was a meagre Rs 9.42 crore, less than 30% of the Rs 35 crore average peak monthly revenue generated during the pre-pandemic times.

In a disclosure, BMRCL expected the first-quarter revenue to be around Rs 33.69 crore with an operating loss of Rs 50.51 crore in the same period. Acknowledging that restrictions on metro operations will be in place for a while longer, BMRCL expects ridership to be substantially low even if the government allows trains to operate. The situation will only prolong the negative impact on the revenue.

"Recovery of the operating costs in itself may be difficult. As such, the company has approached the state government, being the co-promoter of the company, for extending financial assistance and has also planned to meet its overheads and other financial obligations through short-term borrowings from banks," the disclosure said.

A senior official said the corporation spends Rs 31 to Rs 32 crore a month on operations and maintenance of Namma Metro.

"By shutting operations, we may be saving Rs 8 crore on electricity charges. However, we still need about Rs 21 crore for staff salary and maintenance. In addition to this, about Rs 12 crore is required to service the loans for Phase 1," he said.

As per the tripartite agreement, the state government should help BMRCL bridge revenue gaps, especially regarding loan repayment.

"Now, the government itself is caught in a financial crisis. Besides, the government needs to support the Phase 2 projects. Borrowing becomes a necessity under such circumstances," a source said.