UD ministry nod to metro fare hike
The Union urban development ministry on Wednesday said Delhi Metro Rail Corporation (DMRC) can revise fares to offset the rise in metro rail's operating cost on account of the steep hike in power tariff. HT reports.Updated: Jul 05, 2012 00:47 IST
The Union urban development ministry on Wednesday said Delhi Metro Rail Corporation (DMRC) can revise fares to offset the rise in metro rail's operating cost on account of the steep hike in power tariff.
Hindustan Times first reported on June 20 about an imminent hike in metro fares.
"We have suggested to the DMRC that they can go for fare revision. It is part of the mandate. Not only Delhi, but every metro has to periodically increase the fares to be viable," urban development secretary Sudhir Krishna told a news conference
DMRC officials refused to comment on whether fares will be hiked. Metro has, however, constituted an internal team to go into the issue of fare revision.
After the recent power tariff hike in Delhi, DMRC had said that a hike in metro fares cannot be ruled out. The power tariff hike sent operating costs up by Rs. 100 crore annually. DMRC presently spends 30 per cent of its operating expenses on power.
The UD ministry is also trying to create a rational and transparent formula for fare revision which will be applicable to all metro rail networks in the country. "For all metros we are working out a method to have a transparent fare revision system based on rational parameters which will be appreciated by all," he said.
Krishna added the new fare revision system will be based on parameters such as electricity tariff or wage rate in the particular city.