Small BusinessDMRC expects new lines to help swell revenue by 25% this year
Delhi Metro Rail Corporation (DMRC) is expecting its revenues from traffic operations to increase by 25 per cent this financial year due to the increase in average daily ridership after the inauguration of various new routes, including the Yamuna Bank-Noida Sector 32 stretch which will be commissioned tomorrow.
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DMRC expects to earn Rs 390 crore from passenger earnings in 2009-10 as against the Rs 305 crore it had collected last year. A senior official said, “Average daily ridership on Delhi Metro is on a rise. The Noida section itself will add around 53,000 passengers per day over time. As route length is being extended, revenues from passengers operations are also increasing.”
By 2011, earnings from traffic operations are projected to increase by over 200 per cent, to Rs 1,026 crore, compared to the revenues in 2008-09. However, in the period, operational costs are also set to rise to Rs 987 crore from the present Rs 213 crore. The official added, “The economic rate of return for the metro project is high, but financial rate of return for the corporation will remain low. With the commissioning of the new route and consequent increase in passengers earnings, however, we are hopeful we will recover the cost of developing Phase-I of Delhi Metro by 2011.”
The total amount invested for developing the 13.1-km stretch between Yamuna Bank and Noida City Centre is Rs 827 crore. Of this, Rs 566 crore has been provided by the UP government, Rs 93 crore by DMRC and the remaining Rs 168 core has been borne by the central government
DMRC has an outstanding loan of Rs 11,000 crore with Japan International Cooperation Agency (JICA). Its debt repayment commitments will be in the range of Rs 500-600 crore per annum once Phase-II sections become operational. Another Rs 700 crore has to be set aside per annum for depreciation. Which means it won’t make net profit in the immediate future.
Initially DMRC had scheduled the Yamuna Bank-Noida segment for commissioning in December.
But, in view of the rush going to be generated because of the India International Trade Fair which is to commence from Saturday at Pragati Maidan, the authorities decided to inaugurate the route for use in mid-November.