BENGALURU: By consistently clocking an operational surplus averaging around Rs 40 lakh each day for the last six months, the Bangalore Metro Rail Corporation Limited (BMRCL) is now clearly on a comfortable footing on the operations front. However, the huge loans taken from the State and Central governments and international agencies, and the interest amount to be paid ensures the Corporation will continue to be in the red for a long time.
With the ridership inching towards the four-lakh passenger figure daily, the operational cash surplus on hand has crossed Rs 40 crore in the last six months, said a senior official. “This has ensured that the second half of the financial year 2017-2018 ended with good news on the operational front,” he said. With patronage on Metro ridership set to increase by at least 20% in the 2018-2019 financial year, the operational profit could hover around Rs 150 crore.
The opening of the new financial year has been particularly impressive in terms of revenue collection. “This week, almost everyday, we touched Rs 1 crore,” said Mahendra Jain, Managing Director of BMRCL. “On April 2, we witnessed a record fare collection of Rs 1,19,67,031, which is our highest collection till date,” he added.
However, it might take two decades for the Corporation to repay all its external borrowing and another two decades for all internal borrowing (from State and Centre) to be repaid. According to information made available to The New Indian Express, BMRCL pays up to Rs 130 crore per annum as interest amount. This is for the overall loan amount of Rs 10,445 crore borrowed for the Rs 13,865 Phase-I project. This is inclusive of Rs 3,100 crore to be paid to Japan International Cooperation Agency, Rs 1,137 crore to France’s AFD, Rs 446 crore to HUDCO and Rs 300 crore to be paid for BMRCL’s bonds which were used to raise finances.
Only after these loans are settled can the repayment of the subordinate debts commence, explained another official. “This would take another 20 years,” a top official explained. Subordinate debts include Rs 1,418.12 crore to the Indian government and Rs 3949.32 crore to the State government. Metro projects across the world are designed for 100 years and the profits would only be registered in the long-run, the official added.
First-quarter year analysis
A comparative analysis of the ridership of the first quarter of this calendar year, with the last two years, highlights the impact that the linkage between the East-West and North-South Corridor via connectivity to Kempegowda Metro station, launched in June 2017. The ridership has more than doubled this year and is seven times than what was registered in 2016. Correspondingly, the revenue this year is almost thrice than registered during the first quarter of last year and 11 times that of 2016.