Metro News:Fare Fixation ,Revision of Fares,Needs Regularity

Metro News:Fare Fixation ,Revision of Fares,Needs Regularity

New Delhi: Accommodating the demands of Metro rail companies of setting up of a regulator for timely revision of fares, the urban development ministry will now have this provision in the proposed new bill for all such projects.

Representatives of different Metro rail projects made this demand last week at a review meeting while citing how Delhi Metro Rail Corporation (DMRC) has been struggling to revise its fare for over four years because of the indifferent attitude of Centre and Delhi governments. Delhi Metro fare was revised last in 2009.

“There was certain unanimity that fare revision must be de-linked from politics. While setting up of a regulator is one option, there was also a view if we can have a formula in place based on the change in wholesale price index, increase in operation and maintenance cost to revise the fare,” said a government source.

In fact, in states like Karnataka and Kerala, the revision of bus fare is insulated from politics or government interference.

Sources said there is a also a proposal to identify items that are commonly used in all Metro rail projects. After assessing the required quantity of such items by all such projects, a tender for such bulk items can be invited. “Once you have such huge quantity of demand, it will encourage setting up of manufacturing units here rather than importing. This will be taken up under Make in India initiative,” said an official.

At present, most of these items such as fasteners, coaches, automated fare collection gates, signalling system and rail tracks are imported. As of now about a dozen Metro projects are operational or work is in progress.