BMRCL hopes to be in profit by mid-2018

BMRCL hopes to be in profit by mid-2018

BMRCL hopes to be in profit by mid-2018

Five months after the entire Phase 1 became operational; Namma Metro is riding strong towards profit making.

In fact, BMRTL, which runs the metro, says it would erase its losses by June 2018, post surplus revenue and would begin paying interests on its loans.

Until now, the company had to lean rather heavily on the state government for money to keep things going on and off the rails. The company's revenues were in virtual doldrums in 2016-17 as it posted a cash loss of Rs 41.66 crore, but things began looking up after it launched the south line (Sampige Road-Yelachenahalli). A surge in revenue saw the earnings surpass operational costs.

"The daily fare revenue has increased from Rs 60 lakh to Rs 95 lakh over the last few months. We have seen ridership going upwards of 3.4 lakh everyday. We hope to see further progress in the coming days," BMRCL public relations officer and General Manager (Finance) U A Vasanth Rao told DH.

BMRCL's operational cost stands at about Rs 70 lakh per day. Recently, metro authorities have seen a surplus revenue of Rs 7 crore to Rs 8 crore per month. "By July 2018, most of the trains will have six cars and we will be able to carry not less than 6 lakh riders per day. Even if our ridership goes up by about 2 lakh, we should be able to pay monthly interest on loans and also post surplus over expenditure on operation and maintenance," Rao said.

BMRCL Managing Director Pradeep Singh Kharola had said the Corporation is accelerating from self-sufficiency to profit making. "The improved position will help us raise funds for the upcoming metro works in Phase 2," he said.

Meanwhile, metro has seen an increase in the number of regular and frequent passengers.

"The revenue from smart card and tokens stands at 50:50 now. People buy cards when they use metro frequently and it is encouraging to see more people switching over to the cards," a senior official said.