Mumbai Metro firm loses ₹1,000 crore in three years, to seek legal aid
Since its inception in 2014, Mumbai Metro fares have not been revised from their band of Rs10 to Rs40mumbai Updated: Dec 05, 2017 15:54 IST
Facing huge losses, the Mumbai Metro One Pvt Ltd (MMOPL) said it will seek legal recourse in connection with the fare hike matter, after the Bombay high court quashed a proposal to hike fares for the Versova-Andheri-Ghatkopar corridor on Monday.
The Mumbai Metropolitan Regional Development Authority (MMRDA) — the nodal agency for Metro projects in the city — had filed a petition in the high court based on the fare fixation committee’s (FFC) 2015 report, which allowed a price band of Rs10 to Rs110.
Since its inception in 2014, Metro fares have not been revised from their band of Rs10 to Rs40.
MMOPL officials said cumulative losses over the past three years have amounted to more than Rs1,000 crore.
MMRDA officials refused to comment on the issue. “We are studying the detailed order, based on which we seek legal recourse,” said a spokesperson from MMOPL.
Sources added that while government Metros get a funding at an interest rate of 2%, based on sovereign guarantee, MMOPL is operating on loans with an interest rates of 10%. “Government agencies and private players should be treated the same so private entities are not dissuaded,” the source said.
After the recent hike in Delhi Metro fares, ridership decreased by 11% in a month, according to a response to a right to information (RTI) query.