Kochi Metro Rail Limited (KMRL) is banking on ₹300 crore in revenue from the sale of residential apartments, commercial space and other amenities in the 17-acre integrated township it has envisaged at Kakkanad, to achieve operational break-even status.
The sale proceeds from the township are crucial to prevent the State government having to bear the loss totalling ₹60 crore incurred in the 12 months between June 2017 when the metro was commissioned and May 2018 and the possible loss the metro may incur in the coming years. The 18-km metro in the Aluva-Maharaja’s College Ground corridor has been incurring ₹19 lakh loss per day, official sources said.
The daily income from ticketing and non-ticketing income like advertisements is ₹19 lakh, whereas operation and maintenance expenses work out to ₹38 lakh. Hence, the metro agency is banking on revenue from the township to meet its expenses.
“Discussions are over with the PWD to transfer the 17 acre premises to KMRL for the township project. We hope to garner ₹300 crore from sale of real estate space, subject to State government approving the land transfer,” said A.P.M. Mohammed Hanish, MD of the metro agency.
Affordable apartments
The tender to zero in on a detailed design/master plan consultant for the Kakkanad township was cancelled in 2017 after the PWD objected to handing over the land. The affordably priced apartments will have area ranging from 800 sqft to 1,000 sqft, apart from open spaces, cycle track and walkways. The self-sustaining township would also have a solid waste treatment plant, metro sources said. They added that the capital for the project would be raised from banks and other financial institutions. A portion of the funds required would be raised also from the advance paid by those intending to buy the apartments.
“We are very confident of the project’s financial viability and time-bound execution. All constructions on the 17-acre premises will have to adhere to the master plan prepared by the metro agency. Metro systems nationwide bank on income from such real estate sources to fund their operation and maintenance, since ticketing revenue and that from sale of advertisement space alone are insufficient,” KMRL sources said.
On its part, the metro agency has the advantage of having to invest nothing on the purchase of land since it is government-owned.
Metro village uncertain
Yet another income earner, a Metro Village that the KMRL mooted on 230 acres of wetland in Muttom near Aluva is clouded in uncertainty. “It will be taken up depending on the response to the Kakkanad township project,” they said.
