KOCHI: After registering operating profits for the last two consecutive years, Kochi Metro Rail Ltd (KMRL) is now eyeing a big boost in non-fare box revenue by licencing out commercial/office space at major metro stations such as Vyttila and Kalamassery.
“We’ve agreed to provide space at Vyttila and Vadakkekotta stations to State Beverages Corporation (Bevco) to set up premium air-conditioned outlets. A food court-cum-restaurant is coming up at Kalamassery station, thanks to Bharat Petroleum Corporation Ltd (BPCL). An energy hub, comprising a petrol pump and electric-charging stations, is also being set up at Kalamassery. We’ve leased out the land there. We’re also leasing out our building with eight floors at South railway station to Infopark. These are high-end offerings which will start generating revenue in the coming days,” KMRL managing director Loknath Behera said.
Another major non-fare revenue stream is advertising, both interior and exterior, on trains. Chennai-based Podhigai Ads had earlier secured exclusive advertising rights for Kochi Metro.
“Nearly 60% of Kochi Metro trains carry advertisements. Now, the Chennai-based firm has approached us saying they will complete the remaining 40% exterior wrapping,” the official told TNIE.
KMRL authorities are striving to enhance non-operating revenue as they anticipate a spurt in operational and maintenance costs from this year.
“We want to increase non-fare box revenue because expenses will be comparatively higher from this year onwards. The warranty on most of our technical equipment has expired. This will increase our spending on maintenance. This requires us to find additional sources of revenue big time. The non-fare box schemes that we have been implementing for the last one and a half years have started yielding results,” Behera said.
KMRL is exploring “bigger” schemes to add to operating revenue. “We are implementing bigger things. We’re exploring ways to utilise the prime properties at our disposal. For instance, the land in Kaloor,” he said.
The company has been recording a steady rise in non-fare box collections since fiscal year 2021-22, but this is set to increase drastically in 2024-25 and 2025-26.
KMRL succeeded in increasing its non-operational revenue by successfully licencing out a total of 11,394 sqft of kiosk and commercial/office space, bringing in 27 new licences across 25 metro stations, its 13th annual report said. Non-fare box revenue has recorded a steady growth, breaching the Rs 50-crore mark in 2023-24 from Rs 35.86 crore in 2021-22.
Operating profit
Operating profit in 2023-24 rose to Rs 22.94 crore from Rs 5.35 crore in 2022-23. This came after the company incurred an operating loss of Rs 34.94 crore in 2021-22 and Rs 56.56 crore in 2020-21. Average daily ridership has exceeded one lakh in the last six months, providing brands with great advertising potential.