If Chief Minister Arvind Kejriwal wants to keep Delhi metro fares low, then the city government should contribute nearly ₹3,000 crore per annum for the next five years to meet the DMRC’s operational losses, Union Urban Affairs Minister Hardeep Singh Puri has suggested.
Mr. Puri wrote this in response to Mr. Kejriwal’s letter of September 29 where he put the onus on the Central government to withhold any increase in metro fares. The Chief Minister had argued that the Fare Fixation Committee had recommended a gap of one year between two fare hikes. The fares were revised in May and therefore any increase now violates this decision.
Mr. Puri in his letter argued that the Metro Act does not allow the Centre to put fare decided by the Fare Fixation Committee on hold. He instead suggested that the alternate way to keep the fares low would be to give DMRC grants-in-aid of nearly ₹3,000 crore every year over the next five years to meet loan repayment liabilities to JICA (Japan International Corporation Agency) depreciation for replacements and operational expenses.
Operational loss
He pointed out that as per the metro guidelines, the operational loss is the responsibility of the Delhi government. “In case the government agrees to provide grants-in-aid of nearly ₹3,000 crore per annum to the DMRC, then another fare fixation committee may be constituted,” he said in his letter.
Mr. Puri said Mr. Kejriwal’s statement that there should be a gap of at least a year between two hikes is factually incorrect. He said that it was decided in the last Fare Fixation Committee meeting that since the fare hikes were coming after a gap of seven years, it should be staggered into two instalments, of which the first came in May and the second is scheduled for this month.
Delay in construction
The Minister also used the opportunity to hit out at the Delhi government holding it responsible for the 15-month delay in the completion of the Phase III of Delhi metro and Phase IV, which is running two-and-a-half years behind schedule. He blamed the AAP government’s “actions and decisions” for the delays.
Efficient services
“People of Delhi are looking at quality, efficient, reliable and punctual metro services. The DMRC should be allowed to function as an autonomous company in the best interest of the citizens of the National Capital,” the Minister wrote in his letter.
When asked about the letter, a senior government official said it is yet to be received. “A considered response will be given to the letter as and when it is received,” he added.
