DMRC facing financial crunch with no fare hike for six years

Without a single fare hike over the past six years, Delhi Metro Rail Corporation (DMRC), the country's largest operator of a Mass Rapid Transit System (MRTS), now finds itself staring at a financial crunch.  

 

With a steep increase in input costs on the back of a mega expansion plan, the operator of metro trains in the national capital has been, unsuccessfully so far, pressing the government to set up a Fare Fixation Committee Stock Market Trading Tips

 

Not surprisingly, DMRC’s losses, which had been declining for the past few years, have started rising again. The company's net loss rose 11% at Rs 100 crore in 2013-14, up from Rs 90 crore loss in the previous fiscal, its first rise in loss in five years.

The official figures for 2014-15 are yet to be released, six months into the current fiscal. An email sent to DMRCseeking comments remained unanswered.

 

While the company desists from officially commenting on the issue, Managing Director Mangu Singh had toldBusiness Standard in a recent interview that DMRC's input costs have gone up drastically including electricity costs (accounting for 40% of the total), staff salaries, etc Indian stock market astrology prediction

ALSO READ: Fare increase required for passenger benefit, too: Mangu Singh

 

"The last fare increase was done in 2009. We have now asked the government for the setting up of the committee. It is yet to be nominated. But this is the government’s prerogative and I would not like to comment," he had said.

 

An analysis of the operator’s financial numbers reveals an impending crisis. DMRC earned a total revenue of Rs 3,198 crore in 2013-14 including Rs 1,364 crore (43%) from Fare Box Collection and Rs 1,833 crore (57%) of other revenues including those from real estate, consultancy and external projects Himanshu Tiwari Astrologer Blog