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Showing posts with label Fare Fixation Committee (FFC). Show all posts
Showing posts with label Fare Fixation Committee (FFC). Show all posts

Tuesday, 31 May 2016

08:19

Fare Fixation Committee for Delhi Metro notified ; to submit report in 3 months

Fare Fixation Committee for Delhi Metro notified ; to submit report in 3 months 

Ministry of Urban Development has notified the Fare Fixation Committee (FFC) for recommending the passenger fares for Delhi Metro network in Delhi and its extension to National Capital Region. 

Set up under Sections 33 and 34 of the Metro Railway (Operations and Maintenance) Act, 2002, the Committee has been given three month time from the date of assumption of charge by the Chairperson of the Committee Shri Justice M.L.Mehta, retired Judge of the High Court of Delhi, for submission of its report and recommendations to the Delhi Metro Rail Corporation Ltd (DMRC). 

The other members of the fourth FFC are Additional Secretary in the Ministry of Urban Development (Shri Durga Shanker Mishra) and Shri K.K.Sharma, Chief Secretary, Government of National Capital Territory of Delhi. 

The last Fare Fixation Committee submitted their recommendations on metro fares in 2009

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Thursday, 5 November 2015

07:44

Railways to have Independent Mechanism to fix Fares & Freight Tariff based on Efficiency

Railways to have Independent Mechanism to fix Fares & Freight Tariff based on Efficiency

Ministry of Railways to soon finalize Draft Bill for rail tariff authority

New Delhi: Railways is planning to set up an independent institutional mechanism for deciding passenger fares and freight tariff based on efficiency.

“We will have an institutional mechanism which will take into account the efficiency to decide passenger fare and freight rate,” Railway Minister Suresh Prabhu said here today.

Asked whether it will be called Rail Tariff Authority, Prabhu said, “Nomenclature has not been decided yet but it will be a new mechanism altogether in Railways.”

He further said that there will be a new law enacted by Parliament for the purpose.

“We will consult with Opposition on this and we will create a new law,” Prabhu said.

On energy efficiency, the Minister said Railways is taking initiatives to save Rs 5,000 crore on energy bill in the next three years.

“Energy bill is the second biggest challenge for Railways. We are taking various measures to reduce energy bill like going for solar power, wind energy and other energy conservation measures,” he said.

Currently Railways spend about Rs 22,000 crore on diesel and about Rs 13,000 crore on electricity.

On bullet train project, he said the JICA report on Mumbai-Ahmedabad high speed rail corridor project is being evaluated by the government to decide the future course of action on India’s first bullet train.

“The Japan International Cooperation Agency (JICA) has done a feasibility study on Mumbai-Ahmedabad high speed rail corridor. The government is evaluating it and accordingly a decision will be taken,” he said.

Besides Railways, Finance Ministry, MEA and Niti Ayog are evaluating the report, he said, adding that such a project of this magnitude is happening for first time in India.

India’s maiden bullet train corridor between Mumbai and Ahmedabad will cost nearly Rs 1 lakh crore and the first train can run in 2024 if work begins in 2017, according to a final feasibility report on the project prepared by the JICA.

JICA in its report submitted to the Railway Ministy today envisages a reduction in the travel time on the 505-km long corridor between the two western cities to two hours from the existing over seven hours.

Hinting that there will be no new trains in the next budget, Prabhu said there is no need for budget to announce new trains.

When there is a heavy congestion on rail routes, what is the purpose of announcing new trains, he asked. But new trains can be introduced if there is a need. For this, one does not have to wait for budget, he added.

Railways is undertaking study of certain routes to ascertain the possibilities of running more trains.

We are doing operation research to ascertain how to run more trains, he said.
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Monday, 31 August 2015

09:35

MoUD to chalk-out Guidelines for deciding Metro fare

MoUD to chalk-out Guidelines for deciding Metro fare

The Union Ministry of Urban Development (MoUD) has decided to come up with clear guidelines for the Fare Fixation Committee (FFC). It has set up a committee to decide the functioning and what factors would be considered while recommending fares.

Also, MoUD has sent a fresh list containing names of five retired judges for selection of chairman of Delhi Metro Fare Fixation Committee, after five earlier proposals were rejected by the Appointments Committee of Cabinet (ACC).

A fresh list has been sent to the Department of Personnel & Training (DoPT) for obtaining the approval of ACC, sources in the Urban Development Ministry said.

The list consists of names of Justice (retd) M L Mehta of Delhi High Court, and four retired judges of Allahabad HC – Justice Satish Chandra, Justice Virendra Vikram Singh, Justice Ashok Srivastava, and Justice Rajes Kumar.

After the rejection of earlier five panels, this time the Urban Development Ministry has sent the maximum names of five retired judges after procuring the list from the LawMinistry, the sources said.

The Appointments Committee of Cabinet, headed by Prime Minister Narendra Modi, had declined the last proposal with names of three retired judges in February 24 this year, with direction to bring a fresh list for selection of chairperson and two members of Fare Fixation Committee.

Names of an Additional Secretary of the Urban Development Ministry and the Principal Secretary (Finance/Vigilance) of Delhi Government have been suggested as the committee members.

The Ministry had sent the first panel with the name of one retired judge in December 18, 2012, which was declined in February 7, 2013. Another proposal was sent in March 21, 2013, and was rejected in April 26 that year. The third proposal was sent to DoPT in October 31, 2013 and rejected on December 11. The ACC rejected the fourth proposal on March 26, 2014.

Fares of Delhi Metro were last revised in 2009 when the minimum fare was raised from Rs 6 to Rs 8 and the maximum from Rs 22 to Rs 30.

Since then there has been a significant increase in input cost including 94 per cent rise in power tariff. In the past three years, Delhi Metro Rail Corporation has made several requests to the Urban Development Ministry for constitution of FFC for raising fares.

Delhi Metro can revise its fares only on recommendation of the three-member Fare Fixation Committee constituted by the central government from time to time.
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Tuesday, 14 July 2015

18:49

Ex-bureaucrat on Mumbai Metro Fare Fixation panel wanted maximum fare as Rs.26

Ex-bureaucrat on Mumbai Metro Fare Fixation panel wanted maximum fare as Rs.26

Mumbai: In the backdrop of a report of the Fare Fixation Committee (FFC) recommending the maximum fare for the Versova-Andheri-Ghatkopar Mumbai Metro to be kept at Rs.110, it has emerged that one of its members had wanted the highest fare to be capped at Rs.26.

The FFC comprised Justice E Padmanabhan as chairman, members included ex-chief secretary of Maharashtra Jayant Kumar Banthia and former law secretary Dr TK Vishwanathan.

State representative Banthia differed from the views of other two members. Sources said that the fare suggested by the former bureaucrat was keeping in the mind a balance among all aspect.

In its report, which was submitted to authorities recently, the FFC has recommended that the tickets be priced between Rs 10 and Rs.110 for the 11.4-km elevated corridor.

At present, Mumbai Metropolitan Region Development Authority (MMRDA) and R-Infra-promoted Mumbai Metro One Private Ltd (MMOPL) are locked in a tug of war over the fares. Before commencement of the service, the state had suggested a structure – Rs.9-11-13 – for the Metro. However, MMOPL went ahead with Rs.10-20-30-40, leading to friction between the two partners.

Banthia’s suggestion of capping the maximum fare at Rs.26 had taken into account various factors such as affordability of commuting, increase in the project cost from Rs.2,356 crore to Rs.4,321 crore and expectations of R-Infra and MMRDA.

“There couldn’t have been a better solution and the fare suggested by ex-chief secretary Banthia is the perfect way out to the entire on-going fare war,” said a state official.

“He suggested that if the project cost has doubled, so government approved fares too must be doubled from Rs.9-11-13 to Rs.18-22-26. While bidding for the metro project, it was obvious for the Mumbai Metro One Private Limited that it will take 10-12 years to breakeven the project cost, now why to hurry to start making profits immediately?” questioned another official.

MMRDA, which lost the first round after the Bombay High Court didn’t restrain MMOPL from continuing with the Rs.10-20-30-40, is likely to move the Supreme Court in the third week of this month. Suggestions by the FFC in the report are likely to be presented along with its petition.
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Saturday, 11 July 2015

23:05

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.”
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Friday, 10 July 2015

19:49

Mumbaikars to brace for another Metro Rail fare hike – this time it’s Versova-Andheri-Ghatkopar line

Mumbaikars to brace for another Metro Rail fare hike – this time it’s Versova-Andheri-Ghatkopar line

Mumbai: Mumbaikars should brace themselves for a fare hike, this time it’s Versova-Andheri-Ghatkopar Mumbai Metro.

Journey on the elevated corridor is going to become expensive in the coming weeks. There are plans with Mumbai Metro One Private Limited (MMOPL) to further hike the already increased fares over which the Mumbai Metropolitan Region Development Authority (MMRDA) and Reliance Infrastructure (RInfra) led MMOPL have locked horns.

RInfra-led MMOPL wants to increase its revenue not only for ticket sales but also from non-ticketing revenue like advertisement rights and real estate development.

This move has been made public by MMOPL after the Fare Fixation Committee (FFC) submitted its report on Wednesday. The FFC was formed to ascertain if the existing fare structure of Rs10-20-30-40 implemented by MMOPL is appropriate or MMRDA’s demand for fare model Rs9-11-13 should be in force.

Hearing by FFC was held on June 11 by retired Justice E Padmanabhan as chairman, members include ex-Chief Secretary of Maharashtra Jayant Kumar Banthia and former Law Secretary Dr T. K. Vishwanathan.

Thus, if you travel the entire 11.4-km – Versova to Ghatkopar or either way – you are likely to pay above Rs40, which is currently being levied.

“MMOPL is examining the FFC Report submitted on 8th July, and will work towards phased implementation of the FFC recommendations, with gradual fare increases together with the mitigating impact of potential real estate development and subsidy from the state govternment, and keeping in mind at all times the overall interest of our valued commuters,” said an MMOPL spokesperson.

MMOPL is yet to lease out spaces at Western Express Highway Metro station. Sources said that this is one of the locations that is likely to be tapped to generate revenue. The other may be at Ghatkopar Metro station. More stalls may be seen at all the stations which will help the operator garner more revenue from non-ticketing options.
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Saturday, 25 April 2015

22:29

Fare Fixation Committee invites Commuter opinion over Versova-Andheri-Ghatkopar Metro fares

Mumbai: Versova-Andheri-Ghatkopar Metro passengers have been invited by the Fare Fixation Committee (FFC) to submit their opinion on what the fares on Mumbai Metro should be.

A notice has been put up by Mumbai Metro One Private Limited (MMOPL) on their website (www.reliancemumbaimetro.com), where it is stated: “The Fare Fixation Committee invites representations/ proposals from all interested persons, such as passengers, consumers, public bodies, MMRDA and all other organisations interested in the ultimate fare fixation that may be decided by the FFC.”

Those interested, will have to send their “representation, either in writing or by email” to FFC within three weeks. The notice was issued on Friday, April 17.

The FFC comprises retired Justice E Padmanabhan as Chairman, with other members including executive Chief Cecretary of Maharashtra Jayant Kumar Banthia and former Law Secretary Dr T.K.Vishwanathan.

On April 7, through an order, the union government appointed FFC specifically for Versova-Andheri-Ghatkopar metro, and the committee will have to submit their report to the Supreme Court, where a petition is being heard on determining the fares of Mumbai Metro.

Mumbai Metropolitan Region Development Authority (MMRDA) and Reliance Infrastructure are on loggerheads over how much money should be charged to commute on metro rail. The development authority wants the fares to be at Rs9-11-13 depending on the distance of commute.

Reliance Infrastructure has been levying Rs.10-20-30-40 as well as nominally discounted fares through passes and smart cards.

The differences in opinion between MMRDA and RInfra led MMOPL over fares has been on, even before the services were commissioned on June 8, 2014. The justification of the latter to charge higher tariff is substantial increase in the project cost.

Where to Send?
Nodal Officer
Fare Fixation Committee
Mumbai Metro One Pvt. Ltd.
Metro Depot, D. N. Nagar,
J. P. Road, 4 Bungalows,
Andheri (W), Mumbai 400 053
Email: mumbaimetroffc@gmail.com
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