Metro eats into BMTC's revenue pie

Revenue has dropped 10-15pc along Metro corridors, but income from commercial complexes, ads has increased

Published: 23rd August 2016 04:04 AM  |   Last Updated: 23rd August 2016 04:04 AM   |  A+A-

Metro eats

BENGALURU: Metro’s purple line from Baiyyapanahalli to Mysuru Road has received a steady flow of commuters since its inauguration. However, this has made BMTC count its losses.

H Nabhiraj Jain, BMTC Chairman, admitted that the transport utility’s revenue has dropped 10-15% on Metro corridors. “There is a need to introduce more feeder buses along Metro corridors to get more passengers and re-route loss-making buses from such routes to other stretches,” he told reporters on Monday.

BMTC made a profit of Rs 33.97 crore during 2015-16 from a Rs 147.95 crore loss in 2013-14 and Rs 64.9 crore loss in 2014-15, he said. Experts, however, feel that the full impact of Metro and the recent hike of salaries of employees will be reflected in BMTC earnings by the end of this financial year.  

Despite the decline in passenger revenue, Jain said revenue from BMTC’s commercial complexes and advertisements has increased remarkably. Revenue from commercial complexes increased from Rs 27.81 crore in 2013-14 to Rs 48.24 crore in 2015-16. Income from advertisements went up from Rs 3.75 crore in 2013-14 to Rs 13.45 crore in 2015-16.

Bus Bhagya, other Initiatives

Jain said, “We will soon launch Bus Bhagya scheme which offers 50% discount to garment workers and unorganised sector labourers in select buses in the city.”

BMTC will set up solar panels at major bus terminals to reduce power consumption and set up multiplexes at select bus terminals to promote Kannada films.

Jain said the BMTC saved crores of rupees by plugging fuel leaks. Automation of fuel dispensing units, selection of BPCL after termination of IOCL contract for fuel have reduced BMTC’s losses, he said. 

Action has been taken against employees involved in the misappropriation of Rs 79.22 crore worth Volvo monthly bus passes in HSR Layout depot 25 and misappropriation of Rs 1 lakh worth bus passes in Yeshwantpur depot 26.

“We exposed a scam of diverting diesel worth Rs 25.04 lakh meant for buses in Banashankari and lodged a complaint against the employees,” he said. 

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