To boost its non-fare box revenue, the Bangalore Metro Rail Corporation Limited (BMRCL) is contemplating building of four more floors above the operational Kempegowda Majestic interchange metro station. The agency which is running 55 km of metro line in the City is planning to take up the project under public-private partnership. The newly-constructed areas are likely to be used for office space, malls, theaters or for other commercial purposes.
MD of BMRCL Anjum Parwez told The Hindu that an agency has been entrusted with the work of studying feasibility of real estate development. “While building the metro interchange station at Majestic, provisions were made for future expansion. We are planning to take up the project under the PPP model to generate non-fare box revenue. Majestic being a transport and commercial hub, there will be a huge potential for exploiting non-fare box revenue.”
The Majestic station is spread over seven acres of land. Metro officials say over a lakh people are using the station for interchanging the metro from green line to purple line. Patronage to the Metro is likely to increase further as the BMRCL is all set to open the extended purple line from Baiyappanahalli to Whitefield. The Majestic station has been operational since 2017. When the station was opened, it was touted to be one of the largest Metro stations in Asia.
After the outbreak of the pandemic, like other metros, Namma Metro too suffered a huge revenue loss. The BMRCL had generated ₹420 crore fare box and non-box revenue in the year 2019-20, which plummeted to ₹86.99 crore in the year 2020-21 due to non-operation of Metro trains. Owing to lesser footfall, people who rented commercial space at Metro stations, running eateries and other commercial establishments, also suffered losses without business, forcing many to shut shop.
In the last financial year, due to partial operations of Metro trains, BMRCL managed to generate ₹207 crore revenue. In the current financial year, Namma Metro is on the recovery path as ridership has touched 5 lakh mark per day.
Parking lot plans
Meanwhile, the BMRCL is also exploring the possibilities of exploiting real estate opportunities at various metro stations. The MD said that the BMRCL is contemplating building a multi-storied parking lot near K R Puram metro. It is also planning to use the space available at Mysuru Road Station and other areas for real estate development.
In 2017, the BMRCL had entered a long-term lease with IKEA for land available near Nagasandra Metro Station. IKEA has paid a non-refundable upfront fee of ₹251 crore. Besides, BMRCL is generating income of ₹2 crore from IKEA. The land was leased for 60 years.