Metro seeks to boost non-fare revenue as operation costs soar

Unable to meet spiralling expenses with revenues yet to reach pre-Covid levels, the BMRCL has decided to monetise its real estate by expanding the commercial space at metro stations to 2.20 lakh square feet.

“At present, there are about 16 retailers renting a total of 21,000 square feet, which we want to expand,” said a senior official in the Bangalore Metro Rail Corporation Limited (BMRCL).

Officials set Rs 50 crore as the non-fare revenue target for the financial year 2022-23 amidst a sluggish return to pre-Covid ridership and increased expenses due to the restoration of normal services.

The average daily ridership figures crossed the 3-lakh mark recently, still about 35%-40% lower than the 4.5-5 lakh seen during the pre-pandemic days.

Revenue details for the month of February suggest that the daily fare revenue has come down by Rs 50-70 lakh.

With non-fare revenue dropping from Rs 41.92 crore in 2019-20 to Rs 24 crore in 2020-21, the main sources were the licence fee or rent from retail outlets, ATMs, parking spaces and others.

After waiving the rent for shops during the lockdown, the BMRCL linked the rent of the commercial space with ridership, adopting a model first implemented by Delhi Metro.

Unaudited financial results for last year show the BMRCL earned Rs 60 crore from operations and Rs 74 lakh from other sources. While this is expected to improve in the last quarter, officials believe the road to recovery has been long and slow.

A ban on advertisement hoardings in Bengaluru continues to be a major hindrance to non-fare revenue. Officials estimate that advertisements have the potential to increase annual revenue by Rs 100 crore.

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