Metro fares to rise by 10%

Metro fares to rise by 10%

Metro fares to rise by 10%

A day after the last leg of Phase 1 is inaugurated, Namma Metro fares will go up by 10% on all lines.

The government is trying to cut losses, an official said, and the hike is moderate and long overdue. “The current fares were fixed in 2011. Operational costs have skyrocketed, but the fares had not gone up for five years,” a senior government official said. The government has borne a loss of Rs 276 crore, he said.
With the increase in rates on Sunday, a long ride from Nagasandra to Yelachenahalli will cost about Rs 60, while the fare for short trips will go up by Rs 2 to Rs 5.

“We have rounded off the fares so that people don’t struggle for change. Instead of Rs 14 or Rs 16, we have Rs 15 for some stages,” the official said.

The intention is not to make profits, he asserted. “The plan is to bring down the cash loss from Rs 276 crore to about Rs 150 crore,” he said.

‘Cash loss’ is determined on the basis of cash remaining after the operational cost is deducted from the revenue.

The BMRCL’s fare revenue was just about Rs 120 crore a year as the North-South line was not connected to the East-West line.

The operational cost saw a substantial rise as more people were recruited for training ahead of the completion of Phase 1. “At present, our daily revenue stands at about Rs 35 lakh. With the daily ridership expected to go up to five lakh, the daily revenue should cross Rs 1 crore,” a source said.

Government officials said it will take more time before the Metro even reaches break-even.

“The BMRCL has loans to pay. And it has to manage finances for Phase 2. The Centre doesn’t share the cost of land acquisition. It is up to us to make this a viable project,” an official explained.