Bengaluru

Pandemic fallout: BMRCL suffers ₹904-crore loss

Mass transit systems across India were badly hit by the pandemic and the Bangalore Metro Rail Corporation Ltd. (BMRCL) has been no exception. In the financial year 2020-21, BMRCL suffered a loss of ₹904 crore – around 41% more than the previous year. In FY 2019-20, it recorded a loss of ₹641 crore.

Due to lockdown restrictions during the first wave of COVID-19, BMRCL could not operate trains for over five months. After the national lockdown on March 22, 2020, Namma Metro services resumed only on September 7, but in a staggered manner to limit the number of commuters. This resulted in reduced ridership and a subsequent drop in fare box revenue.

The difference in revenue collection in one year has been stark: last financial year, BMRCL managed to earn only ₹73.92 crore through fare box revenue, compared to FY2019-20, when it raked in ₹419 crore. Non-fare box revenue, too, dropped from ₹10.4 crore (2019-20) to ₹6.43 crore in (2020-21).

Documents posted on its website show that the corporation incurred ₹984 crore in expenses, which include employee benefit costs, finance costs, depreciation, and amortization expenses.

B.L. Yeshwanth Chavan, Chief PRO of BMRCL, said: “Non-operation of trains for months and drop in ridership after resumption of services resulted in reduced revenue generation.”

In another disclosure, the BMRCL has already approached the State government for extending financial assistance and plans for short-term borrowing from banks to meet overheads and other financial obligations.

This year too, after the second wave of the pandemic, the State government imposed lockdown restrictions and the BMRCL could not operate trains from April 27, 2020. The services resumed on June 21.


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Printable version | May 20, 2022 10:00:29 am | https://www.thehindu.com/news/cities/bangalore/pandemic-fallout-bmrcl-suffers-904-crore-loss/article35138231.ece