MMOPL and MMRDA reach the court on fare issues in Mumbai’s maiden metro project
Reliance Infrastructure-led Mumbai Metro One Pvt Ltd (MMOPL), the operator running the Metro line told the Bombay High Court on Thursday that even with this increased fare it will not be able to break even till the end of the second year of operations. Reliance Infrastructure finds the initial fare structure justified for the Metro which is first of its kind in the financial capital of India.
In spite of collecting a fare between Rs 10- Rs 40, the company will face a shortfall of Rs 113 crore to run the line in its first year of operations. The lawyer appointed by MMOPL mentioned during the arguments in the Mumbai High Court that the company is here to do business, not charity.
Mumbai Metropolitan Region Development Authority (MMRDA), a state government agencywants to fix an initial fare between Rs 9-13 in the Versova-Andheri-Ghatkopar Metro, and MMOPL is violently opposing that amount. The company is worried about incurring losses as even at a fare between Rs 10-40, the company does not foresee to break even within the first 2 years of its operations and if the occupancy levels remain low, then the situation will be even worse.
According to information provided by the MMOPL to the court, the company had taken opinion from SBI Capital and Systra MVA Consulting, a Hong Kong-based traffic consultant, before finalising the Rs 10-40 fare structure.
Source- The Financial Express
Mumbai High Court, Mumbai Metropolitan Region Development Authority, Versova-Andheri-Ghatkopar metro
