The Delhi Metro Rail Corporation on Saturday clarified that hiking the fares is a necessity, as only then it can meet the input costs and keep providing world class service to the commuters.
The DMRC stated that since 2009, there has been no significant increase in commuting fare, while over the years, the repair and maintenance cost for metro service has increased by 213 per cent, energy by 105 per cent, and staff cost by 139 per cent.
“To continue to provide a world class service, it is essential to operate as a healthy organisation. Keeping this in view, the provision has been made for the periodic revision of fares through a Fare Fixation Committee (FFC) in the Delhi Metro Operations & Maintenance Act, 2002,” read the statement of the DMRC.
The press release further clarified that, the DMRC also has to pay Japan International Cooperation Agency (JICA) a huge outstanding amount of Rs 26,760.
“Moreover, the DMRC has to provide for depreciation and replacement of various assets such as the trains (Rolling Stock) which have a life of 30 years and will have to be replaced subsequently and for this provision has to be kept,” the letter read.
The metro corporation stated that in spite of operating efficiently, the metro service is making a net loss of Rs. 378 crore in view of the above factors.
“The long gap of over eight years in the formation of FFC has resulted in the fare hike in percentages, which if seen on yearly basis, is in the reasonable range of 7-8 % per annum taking into account the two phase of the fare Hike (Phase-I: May 2017, Phase-II; October 2017),” the letter read.
Further defending their decision, the DMRC said that it constantly making efforts to reduce its operating cost by going for solar power projects and increasing the energy efficiency at its stations. It is also introducing new initiatives on Property Development and Property Business front.
The DMRC said that it is consistently increasing number of trains, AFC gates, lifts, escalators and other passenger services which also result in the increase of input cost but are essential for providing a world class service.
“Once Phase-III of the Delhi Metro is fully operational, commuters on many routes will have to travel shorter distances and they will be paying lesser fares (see Annexure-I). A comparison of metro fares of many Metros in India shows that the DMRC’s maximum fare level is either less or comparable with other metros which are operating In India inspite of a higher per capita income in Delhi,” the letter stated.
“As the metro system is getting older, more maintenance procedures, preventive & corrective checks, safety & reliability checks, replacement of electrical fittings(such as insulators), base plates, rail testing etc. are required which is essential for providing a world class service, and which also leads to increased cost in overall operations and maintenance,” it added.
Recently, Delhi Chief Minister Arvind Kejriwal wrote to the Centre urging them to withheld their decision raise the fare of the metro service in Delhi and asked to review its decision.
The Delhi Metro fares were last revised in May. If the fare is revised again it is expected to go up by a maximum of Rs 10 from October 10.
KEJRIWAL CALLS THE HIKE ANTI-PEOPLE
Delhi CM Arvind Kejriwal on Friday evening wrote a letter requesting the Union Urban Affairs Minister Hardeep Singh Puri to direct DMRC to withhold fare hike.
The CM has pointed out that the DMRC has violated recommendations of the Fare Fixation Committee.
In his letter Kejriwal, has stated the Union Minister can use provisions of DMRC Act to issue relevant directions to the Metro officials to put the fare hike on hold for now till its decision is jointly reviewed by the Central and Delhi governments.
In a letter to the union minister, the chief minister has also requested that since the Centre and Delhi governments equally own the DMRC, its Board meeting should be convened to stay the proposed fare hike.
The proposed fare hike of about Rs 10 by the DMRC which is to be implemented on Oct 10 has become a flash point between Govt of Delhi, DMRC and Centre.
Kejriwal pointed out that residents of Delhi are still reeling under the impact of the previous steep fare hike by the DMRC in the month of May, and the proposed second fare hike from 10th October “will be simply unacceptable” in this time of economic distress.
Indiatoday.in
