The world-class smart card ticketing system proposed for the Kochi metro and other commuting modes in the region has reaped an unusual bounty with the Axis Bank agreeing to invest the full amount required for the Automated Fare Collection (AFC) system.
This includes funds for AFC of the metro’s Tripunithura and Kakkanad extensions and also for bus and boat transport.
“The bank will also pay an additional royalty of Rs. 209 crore to the Kochi Metro Rail Limited (KMRL) over the next 10 years for retaining the right to be KMRL’s partner in this endeavour,” the metro agency’s managing director Elias George told mediapersons here on Tuesday.
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The bank will also ensure operation and maintenance of the AFC system for 10 years. It will issue co-branded debit cards to the users of the metro system. In addition, the KMRL will get 20 per cent of the bank’s gross revenue (which is approximately a percentage of the purchase value of merchandise from shops or online purchases) over the next 10 years.
Terming this as a business model which would have global ramifications, Mr. George said it was for the first time that such an innovative model was being launched anywhere in the world. “This model which we designed is expected to change funding models for AFC systems in the global metro industry. The big sum saved by way of capital and maintenance cost and the Rs. 209-crore the bank will pay us will be used for metro’s operation and expansion projects,” he said.
The radio frequency identification device (RFID) card is contactless and will click when commuters cross sensors placed at metro stations. They can also order merchandise online using the card and collect them from the stations. The card can also be substituted by installing an application in cell phones.
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Axis Bank won the international competitive bid since the sole competitor bank demanded payment from the KMRL for establishing and maintaining the system. “It is a win-win situation for KMRL, metro commuters and the bank,” Mr. George said.