Mumbai Metro fares can be much lower, insist experts

Mumbai Metro fares can be much lower, insist experts

Mumbai: Metro commuters can evade a fare burden if the authorities think out-of-the-box, liberalizing commercial exploitation rules at stations and subside the interest burden on the loan component and electricity tariff.

The three-member fare-fixation committee (FCC) has recommended fares in the range of Rs.10-110 for the 11.4 km Metro corridor that has 12 stations on the Versova-Andheri-Ghatkopar route.

The Mumbai Metro One Pvt Ltd (MMOPL) has taken a loan from Indian and foreign banks with an interest of 13% during construction and 11.7% post re-financing. But the Delhi Metro Rail Corporation (DMRC) has sought a Japan Bank of Industrial Cooperation (JBIC) loan at 1.2% interest through government lending. Also, all foreign exchange fluctuations are borne by the government in the case of DMRC, while MMOPL has to bear the entire risk of forex fluctuations. DMRC has also been given transit-oriented development rights along the Metro corridor, helping it raise earnings through non-fare box revenue.

An expert said, “The state government should liberalize rules of commercial exploitation of air space at Metro stations along the corridor, which have emerged as a major corporate hub over the past decade. They can earn handsome revenue which can help reduce fares. Real estate rates in Mumbai are among the highest and the authorities should allow MMOPL to take advantage of it with stricter norms to ensure that the earnings should bring down fares.” He added, “If low interest rates and cheap electricity tariff are available for Mumbai Metro, fares can be Rs.10-60.” Another expert said, “The government should review the discriminatory PPP policy.”