To get clarity on revenue collection, the Mumbai Metropolitan Region Development Authority (MMRDA) has asked the operator of Mumbai Metro to provide details on the amount collected every month through non-fare avenues such as advertisements and sponsorships.
The move assumes significance as addition of the revenue collected using non-fare sources could impact the fare fixation process.
MMRDA commissioner UPS Madan said, “The revenue from all sources will be considered by the fare-fixation committee. So, we have asked the Mumbai Metro One Pvt Ltd (MMOPL) to send us the details every month.”
The MMOPL has claimed it has been incurring losses on its operations on the Versova- Andheri-Ghatkopar (VAG) line. However, according to the MMRDA, the MMOPL is using more space for non-fare revenue generation than permitted. The MMRDA has allowed the MMOPL to use approximately 100sqm on each station for such activities.
MMRDA additional commissioner Sanjay Sethi said, “We have found commercial activities are being carried out on areas beyond the permitted limit. We should be aware of the sources and revenue being generated.”
MMOPL spokesperson said, “In a board meeting, it has been decided to make the Metro sustainable business with support of the government.”
The MMOPL had been charging a promotional fare — Rs 10-Rs 20 — till last Thursday, when it implemented the new increased fare — Rs 10 to Rs 40 — after the Bombay high court’s ruling. An audit by the Comptroller and Auditor General (CAG) on the project, which is yet to begin, will give more clarity on the financial, expenditure, accounts and policy aspects. The findings of the audit will be taken into account by the fare fixation committee.