CHENNAI: Love travelling in mass rapid transit system (MRTS) since it helps you save on the big bucks? It could all change pretty soon as the TN government is mulling a takeover of the MRTS from Southern Railway and will most likely increase the minimum fare.
Regarded as one of the cheapest modes of transport in Chennai, the minimum fare for travel by MRTS is Rs 5. MRTS incurred a loss of Rs 84.10 crore last year, mainly due to the subsidised fare and lack of patronage. This has in turn led to poor upkeep of stations and coaches, said sources.
To make the acquisition viable, the state will likely increase the minimum fare from Rs 5 to Rs 10 and give a makeover to the stations and the coaches. The idea is to provide better facilities to the commuters. Southern Railway (SR) annually spends over Rs 100 crore for MRTS. The money is spent on train operations, maintenance, pay for staff and annual maintenance of EMUs. Last year, SR earned Rs 17.25 crore through MRTS ticket sales, added sources. If MRTS is acquired in one go, the state would also be acquiring 150 EMU coaches, whose cost at depreciated value is around `140 crore.
The state could also go in for dry leasing and the coaches would remain with the SR. The replacement of rolling stock could happen over the next two to three years. While the state is looking at a one-time payment for acquiring MRTS, it is not known what could be the actual cost. The state could consider paying more than Rs 500 crore to SR for the takeover, said sources.
Earlier, the plan was a two-stage takeover. Under this, the Chennai Metropolitan Development Authority was to develop all the MRTS stations commercially, while SR was to manage the operation and maintenance. The next stage included a complete takeover of MRTS through a special-purpose vehicle.
Initially, MRTS was to be merged with Chennai Metro but it has not materialised yet.
The merger was put on the back burner in 2018 due to a disagreement between the state and Southern Railway over the acquisition of land for SR to construct a new line between Beach and Park stations.
In 2018, a final report prepared by the consultant to study the merger of MRTS with Chennai Metro stated that the state government will have to spend between Rs 2,800 crore and Rs 3,100 crore to revive the MRTS stations and put in place new rolling stock.