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<keyword id="6366797" type="CITY" weightage="100" keywordseo="Delhi-Metro">Delhi Metro</keyword> Rail Corporation (<keyword id="45312" type="ORGANIZATION" weightage="100" keywordseo="DMRC">DMRC</keyword>) is facing a lot of increasing expenses these days, while it also has to repay the loan taken from Japan. This is why it is seeking to double the fares, with its minimum fare being 15 as against the present Rs 8, and maximum of Rs 70 as compared to the current Rs 30. 
 
As per TOI sources, DMRC has also submitted a proposal to the fare fixation committee that the fares should be in the multiples of five so that there is no need to provide small change to cash-paying passengers. It was in 2009 that DMRC has last revised its fares, and that is when the current minimum and maximum fares were decided. 
 
The fare fixation committee, which will be headed by a retired high court judge, will be submitting its recommendations in the next two months and the government will be taking a final decision. 
 
As per sources, 40% of DMRC's total expenditure comes from electricity charges, which has increased by almost 100% in the past six years. Add to it the expanding metro network and the deteriorating operating ratio, and we have the reason why DMRC is forced to think of such a step. 
 
<a href="http://s4.scoopwhoop.com/anj/xb/937624108.jpg">Image source</a>

Delhi Metro’s maximum fare might be upped to Rs 70

<keyword id="6366797" type="CITY" weightage="100" keywordseo="Delhi-Metro">Delhi Metro</keyword> Rail Corporation (<keyword id="45312" type="ORGANIZATION" weightage="100" keywordseo="DMRC">DMRC</keyword>) board has approved a rise in its fares, which would make travelling in <a href="http://www.businessinsider.in/Delhi-Metro-is-going-to-build-Indias-greenest-metro-corridor-This-is-how-they-plan-to-do-it/articleshow/54807555.cms">Delhi metro</a> a tad bit costlier. Also read: <a href="http://www.businessinsider.in/10-things-you-didnt-know-about-Delhi-Metro/articleshow/48857764.cms">10 things you didn’t know about Delhi Metro</a> The new fare would be implemented from Wednesday onwards, with the minimum fare hiked to Rs 10 instead of the present Rs 8 and the maximum fare hiked to Rs 50. As per reports, DMRC would again hike the fares in October this year, taking the maximum fare to Rs 60. The <a href="http://www.businessinsider.in/topic/DMRC-fare-committee">Fare Fixation Committee</a> had submitted its report in last September, in which it had recommended a fare hike from October 1 last year and again from October this year. This one-year gap would have meant that people don’t have to suffer two hikes within a few months. "But the DMRC Board took more time to accept the committee's recommendation. So, the fare hike that was supported to kick in from last October will happen from Wednesday," said a source. Also read: <a href="http://www.businessinsider.in/delhi-metro-smart-cards-to-be-non-refundable-from-april-1/articleshow/57391857.cms">Delhi Metro smart cards to be non-refundable from April 1</a> It’s for the first time in eight years that DMRC has increased its fares. However, to please the customers, the Board has decided to have discounted fare for people taking <a href="http://www.businessinsider.in/Delhi-Metros-4thphase-to-cover-103-km-and-serve-6-corridors/articleshow/56389815.cms">Metro</a> on Sundays and national holidays. It has also decided to provide luggage cabin in metro coaches. The committee had also recommended an automatic annual hike in fares, but the board rejected this recommendation.

Delhi Metro to go a bit costlier from Wednesday

New Delhi, The <keyword id="61705" type="COMPANY" weightage="20" keywordseo="Delhi-Metro-Rail-Corporation">Delhi Metro Rail Corporation</keyword> (<keyword id="45312" type="COMPANY" weightage="20" keywordseo="DMRC">DMRC</keyword>) has been facing a financial stress with the losses to the tune of ₹1,500 crore during the heydays of the pandemic induced lockdown. Metro operations were halted during lockdown for a period of roughly six months, which drastically affected revenue from passenger travel. At the same time, operating expenses including Operation and Maintenance (O&amp;M) costs had to be continuously paid for the upkeep of the metro network which spans 285 stations and a total track length of 389 km. Additionally, there had been a decline in the non-fare revenue garnered from advertisement as well as shop rentals for the months when metro operations had been suspended. The DMRC has around 400 retail outlets at its stations. Owners of these retail shops have expressed their inability to pay rent to the DMRC on account of no sales. Even now, when the metro services have been resumed, it has been done with sub optimal capacity on account of following strict social distancing norms. In addition, the Delhi Metro had taken a soft loan of ₹35,198 crore from <keyword id="6395487" type="COMPANY" weightage="20" keywordseo="japan-international-cooperation-agency">Japan International Cooperation Agency</keyword> (JICA) at a concessional rate of 1.2-2.3 per cent for 30 years. For the financial year 2020-21, DMRC is required to pay ₹1,242.8 crore of which ₹434.1 crore is the interest while ₹808.7 crore is the principal amount. However, till July 2020, DMRC had been able to pay only ₹79.2 crore as interest payment. In the wake of <keyword id="392283" type="PERSON" weightage="20" keywordseo="financial-distress">financial distress</keyword>, the DMRC has turned to seek financial assistance from the <keyword id="6357307" type="COMPANY" weightage="20" keywordseo="Central-Government">Central Government</keyword>, Delhi, Haryana and Uttar Pradesh governments. It is learnt that the DMRC has written to the Central and state governments requesting financial help. It is yet to be seen whether the Central and the state governments come to the rescue of the DMRC since they too are reeling under high fiscal deficit. This is for the first time that the Delhi Metro is facing operational losses. Since 2002, the DMRC has never faced an operational loss owing to efficiency in operations and world class service standards. To tide over its financial stress, the Delhi Metro is brainstorming innovative methods of revenue generation. The DMRC is following a two pronged strategy of curtailing expenditure wherever possible and deferment of non-essential expenditure. It has decided to reduce perks and allowances of its employees to about 50 per cent in the coming financial year and also requested the Centre to defer the payment of its loan instalment to JICA for the year 2020-21. A Parliamentary Committee report had suggested innovative methods of revenue realisation for the DMRC. The average non-fare revenue of Metro, across the world, comprising of revenue from advertisements, property leasing and consultancy is close to around 40-50 per cent of total traffic revenue. However, for the DMRC, non-fare revenue accounts for only 15 per cent, which is abysmally low. In order to tackle this challenge, the committee suggested leasing of existing assets i.e. track and rolling stock, leasing of commercial spaces at stations, advertisement fee, parking fee as well as revenue generation by levying a cess on residential property development of nearby areas which have seen enhancement in value owing to metro operations. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/analysts-explain-why-indigo-paints-shares-fell-with-a-thud-just-like-burger-king-and-mrs-bectors-and-what-to-do-with-it-now/articleshow/80704864.cms">Indigo Paints joins the league of Burger King and Bector's — frenzied IPOs that fizzled out</a> <a href="https://www.businessinsider.in/tech/news/the-india-stack-that-bill-gates-and-sundar-pichai-so-love-is-set-to-get-much-bigger-thanks-to-the-indian-governments-new-blockchain-strategy/articleshow/80718403.cms">The India stack that Bill Gates and Sundar Pichai so love is set to get much bigger – thanks to the Indian government’s new blockchain strategy</a>

Delhi Metro facing financial distress with losses of ₹1500 crore due to COVID-19 pandemic

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Delhi Metro’s maximum fare might be upped to Rs 70

BI India Bureau

Delhi Metro to go a bit costlier from Wednesday

BI India Bureau

Delhi Metro facing financial distress with losses of ₹1500 crore due to COVID-19 pandemic

IANS

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