BMRCL loss dips from ₹912 crore to ₹477 crore 

BMRCL recorded a revenue of ₹193 crore in the last financial year.

BMRCL recorded a revenue of ₹193 crore in the last financial year. | Photo Credit: FILE PHOTO

With the metro services running during most of the last financial year, the loss incurred by the Bangalore Metro Rail Corporation Limited (BMRCL) has dropped from ₹912 crore in 2020-21 to ₹477 crore in 2021-22.

Multiple restrictions because of the pandemic had led the BMRCL to suspend services for most of 2020-21 and the entire financial year, the fare box revenue was only ₹73.56 crore. However, with the restoration of services in the next year, the revenue jumped to ₹193 crore.

BMRCL Managing Director Anjum Parwez said, “In 2020-21, after the outbreak of the pandemic, there was no service for most of the year. But last year, we managed to run services resulting in increased revenue. Another factor that curtailed the losses was the change in the valuation of depreciation cost. Metros like the one in Delhi consider the life span of viaduct up to 60 years whereas we were considering it only for 30 years. That has changed now.” As per the balance sheet of the BMRCL, depreciation and amortization expenses have come down from ₹584 crore (2020-21) to ₹380 crore.

Hoping for better revenue

The official said in the current financial year, the patronage is promising, and the BMRCL is likely to generate ₹380 to ₹400 crore fare box revenue. “Last week, our ridership touched 4.8 lakh. On an average, our ridership touches close to 4.3 lakh and on weekends around 4 lakh. The daily revenue generated is ₹1 crore. We are hoping that if patronage continues to improve, we may not need cash support from the government,” the official said.

He added that to generate more non-fare box revenue, the BMRCL will allow bidding for retail spaces at the metro stations after fixing the base price. After the outbreak of the pandemic, many people who had rented out spaces at metro stations for shops and eateries, discontinued their business after suffering losses. On the other hand, the BMRCL is also hoping for more revenue from parking lots.

To reduce power expenses, the BMRCL has a proposal to generate electricity using solar panels. “Under public private partnership, we are planning to build a 20 MW solar power project. The BMRCL will not make investment for the infrastructure. We will purchase electricity from the private investor for ₹3.8 per unit, whereas now we are paying over ₹5 for per unit. The move will help us to save ₹10 to ₹12 crore per year.”

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Printable version | Jul 4, 2022 5:31:21 pm | https://www.thehindu.com/news/national/karnataka/bmrcl-loss-dips-from-912-crore-to-477-crore/article65593405.ece